Blogging is a relatively new profession, but it's covered by the same tax laws that apply to many other occupations. You may be able to take advantage of certain deductions to reduce your tax bill.
Key Takeaways
- As a self-employed blogger, your taxes won't be automatically withheld from your earnings. If you’ll owe more than $1,000 in taxes, you’ll need to pay estimated taxes to the IRS every quarter.
- Since you’re self-employed, you pay both the employee and the employer portions of your Social Security and Medicare taxes on your blogging income (known as the self-employment tax).
- Self-employment tax is calculated separately from income tax on your tax return.
- You can deduct business expenses that are considered reasonable and necessary to your profession, including for an office in your home if you use a space only for blogging.
Being self-employed
Blogging is a relatively new profession, but it's covered by the same tax laws that apply to many other occupations. The main danger from a tax perspective is that, as a self-employedblogger, your taxes won't be automatically withheld from your earnings, as is typical with traditional employees. Additionally, you'll owe self-employment taxes that most employees don't pay. However, you may be able to take advantage of certain deductions to reduce your tax bill.
Estimated taxes
Be aware that as a blogger, you're likely to face estimated taxes, something most traditional employees don't have to worry about.
The United States tax system operates on a "pay-as-you-go" basis. Since you don't have any taxes deducted from your blogging income, you'll typically need to pay estimated taxes to the IRS each quarter. The due dates for estimated taxes are April 15, June 15, September 15 and January 15 (with some exceptions for holidays, etc.). If you don't pay your estimated taxes in a timely fashion, you may owe an additional tax penalty. If you didn't have any tax liability in the prior year, or if you don't owe more than $1,000 in tax, you may be able to avoid paying estimated taxes.
Self-employment tax
When saving for your estimated income taxes, don't forget to set aside additional money for self-employment tax. From the perspective of the IRS, working as a blogger means you run your own business.
Even if you only work part-time as a blogger and full-time as a salaried employee somewhere else, the blogging part of your income qualifies as self-employment income. As a result, you'll likely need to pay self-employment tax on that income, which is the combined Social Security and Medicare taxes paid by an employee and an employer. Since you run your own business, you pay both the employee and the employer portions. Self-employment tax that is due has to be paid whether or not you owe any federal income tax.
TurboTax Tip:
If you fail to earn a profit in at least three of the most recent five tax years, the IRS may categorize your blogging business as a hobby and disallow your tax deductions. To claim your deductions, you'll need to demonstrate to the IRS that you are running a bona fide business.
Deductible expenses for bloggers
The good news about running a business as a blogger is that you are allowed to deduct expenses that are considered reasonable and necessary to your profession. If you pay for advertising, supplies, office furniture, electronics, insurance or other goods and services that directly relate to your business, you can take those expenses off the income you earn as a blogger. If your office is in your home, you may be able to deduct some of your household expenses as well, including rent and utilities.
Business as hobby
The IRS will disallow your tax deductions if your blogging business is categorized as a hobby. To claim your deductions, you'll need to demonstrate to the IRS that you are running a bona fide business. The most obvious way to prove this is to earn a profit. If you have a profit in at least three of the most recent five tax years, you can usually qualify your business as legitimate.
Other things the IRS may consider are the time and activity you put into the business, whether or not you depend on income from it and if you can reasonably expect to make a profit in future years.
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FAQs
This means you must report your earnings as self-employed income using Schedule C. When you complete the form, you can write off expenses related to your work, like equipment, advertising, home office space, supplies, or mileage. Doing so can lower your tax liability and ultimately reduce your tax bill.
Can a blogger write off travel expenses? ›
As a travel blogger, your meals and travels can be considered a deductible as long as it's related to your blog. You can also deduct expenses to and from an industry event if you're being sponsored by an agency or brand.
How do influencers write off taxes? ›
These are the ordinary expenses that social media influencers typically can include as deductions when filing their taxes:
- Cellphone and laptop.
- Cameras and other filming equipment.
- Prizes used in social media posts.
- Website-related expenses.
- Editing and other related software and apps.
Whether your online activities are a full-time job or just a side gig, they're considered a business. Filing taxes for content creators follows the same process as other self-employed individuals. As a result, you report your income from your content creation activities on Schedule C, Profit or Loss From Business.
What can I claim on my taxes as a content creator? ›
What are some deductible expenses that content creators can take advantage of to maximize their tax returns? Content creators can deduct equipment, software, internet costs, office space (with limitations), travel for business purposes, and a portion of meals consumed while working.
Can bloggers write off clothing? ›
So, can you write off clothes as an influencer? Undoubtedly, you can – but you'll need the proof to get the pudding. In other words, clothing expenses as a business expense for influencers need evidence as an essential purchase. Complying with the IRS is crucial to getting the most out of your tax return.
Does a blog count as a business? ›
Most people start a blog as a hobby. But after earning an average of $2,000 per month , most bloggers will consider turning it into a full-time business. If you want to turn blogging into a career, check out my step-by-step guide on how to be a full-time blogger! Okay – so blogging can be considered as a business.
Can food bloggers write off groceries? ›
For food bloggers, the expenses related to groceries can be deducted. However, personal grocery costs aren't tax-deductible.
Do content creators need LLC? ›
As an Instagram content creator or any social media influencer for that matter, you might wonder whether you need an LLC. In general, platforms do not mandate creators to form LLCs. As a startup, operating as a sole proprietor might suffice.
How do influencers show proof of income? ›
Some ways to prove self-employment income include:
- Annual Tax Return (Form 1040)
- 1099 Forms.
- Bank Statements.
- Profit/Loss Statements.
- Self-Employed Pay Stubs.
Enter “personal appearance expenses,” a category in which content creators can find some interesting tax deductions. The Internal Revenue Service “personal appearance expenses” guidelines can cover a range of items, from specific types of clothing to stage makeup and hair and body care products.
What is a realistic income from blogging? ›
Some of the top bloggers make thousands of dollars per month. But many experts believe bloggers can make $500-2,000 per month within their first year of blogging. Consistently post, promote your content, build your readership, and implement some of these monetization tactics to get started.
How are bloggers taxed? ›
Unlike traditional jobs, blogging income doesn't come with tax withholdings. So, you'll need to set aside a portion regularly to cover potential tax obligations, avoiding surprises during tax season. Understanding and factoring taxes like Social Security and Medicare into your financial planning is key.
Can you blog anonymously and make money? ›
You can absolutely make money with an anonymous blog. Blogging is my full-time income, and I do it semi-anonymously. There are plenty of other bloggers out there who are even more anonymous than me (they use a pseudonym, they don't share any photos of themselves, etc.)
How do bloggers receive their money? ›
Basically, if you help a company make a sale, they might be willing to pay you a commission. Many companies, large and small, have affiliate programs that bloggers can join. After you sign up, you get a unique link for a specific product. If someone clicks that link and then makes a purchase, you get paid!
Do influencers have to pay taxes on gifted items? ›
She notes that the influencer and content creator industry is relatively new, and "its tax implications are not as clearly defined yet by the IRS. However, tax evasion is a serious offense, so you have to be mindful that you're including all of your income on your tax return, including gifts."
