Tax Tips for Bloggers

I am so glad to be done with my 2012 taxes. It's one chore I really dislike doing, especially since I work at home. It does mean I get tons of deductions so that really helps to reduce my tax burden. One of my work at home jobs is running a home daycare and I also have to report my income for blogging activities. Since I already have an EIN (Employer Identification Number) I can report all of my income under that number. I probably spent a total of six hours doing my own taxes, but I learned from my dad that doing my own taxes is the best idea because trusting my money to someone else might not be in my best interests. I thought I'd share some of my tax tips for bloggers to help you save some money this year.

First, keep really good records. Record every bit of income you earn from your blog. You don't need to invest in an expensive accounting program. You can create and use an Excel worksheet to record the date you earned the money, who you earned it from, and how much you earned. It's also a good idea to choose a category for the income (such as "guest posts" or "products received") so that you can sort the Excel worksheet at the end of the year to easily add up your category totals.

You also need to record every bit of expense you spend on your blog. An Excel worksheet works well for this too. You can use two worksheets, like I do, one for income and one for expenses, or you can combine them into one worksheet and use double columns like a checkbook. Again, record the date you spent money, the company name, and the amount you spent.

Expense categories are very important, because you will need to itemize your expenses on a Schedule C to best take advantage of tax deductions. Include categories like "advertising" and "office supplies" as well as specific categories like "small business web design" and "computer software." The more specific your categories are, the less likely you will raise a red flag that could trigger an IRS audit.

Make sure you save all receipts to prove what you spent. I always make a photocopy of every receipt because receipts often fade; staple the original receipt to the copy and save them all. Save your tax records for at least seven years because the IRS can ask for those records during an audit. Don't be afraid to do your own taxes! It simply requires you to read the directions on the tax forms. You can do that, right?


  1. We just did our taxes over the weekend and it's one of my least favorite things to do for all the reasons you mention in your post. I am glad it's over with because the past couple of years I procrastinated causing my husband to apply for an extension.

    It took me a long time to sort through everything over the weekend...I'd say I spend several hours. I did better in 2012 than I did in 2011 in keeping things more orderly but I am not where I should be to make it easy to grab and hand over the info to my husband when he does our taxes.

  2. Lisa, I would be your bestest friend for life if you would come do my taxes! I don't have great records. :(


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