Blogger Tips for Tax Deductions

Writers and other self employed professionals are entitled to certain deductions on their tax returns. Do you know what those are? Do you know how to claim them? Every situation is different, so as you read through these tips, remember to check with this year’s tax code or an tax professional about which deductions apply to you and which don’t. Because tax laws change frequently, consider having an accountant or tax professional help you file your taxes.

Are You a Professional?

Are you a professional blogger or do you dabble as a hobbyist? This is an important consideration. If you intend to make a living from your writing, you are a professional, and you can deduct the cost of all of your costs. Keep receipts from all of your purchases and other expenses, so you can accurately tally these. Expenses might include Internet connection, a personal computer and writing classes.

If you writer for your own pleasure but happen to have earned some income for it, you can only deduct your expenses up to the amount you earned during the past year. If you lose money at writing for several years, it’s a hobby, not a profession.

Do You Blog Alone or as Part of a Group?

If you work solo, whether you have filed for a business license or not, you are a sole proprietor. As a sole proprietor, you will need to file a Schedule C form when you file your federal tax return.

If you blog with others, such as co-blogging on a shared platform, you must file as part of a general partnership. Any business that operates as a general partnership absolutely must have a written agreement as to how this business relationship is being handled. You will also need to file partnership returns. If you haven’t created an agreement yet, do this immediately. It would probably be wise to have legal assistance as you work out these crucial details.

Tracking Expenses

This is one of the hardest parts of running any business. Just trying to meet deadlines with your hair intact is hard enough, much less keeping receipts intact. If you plan to deduct expenses when you file your //