I spent all day Saturday doing taxes for the family, something that I have been doing for years, however, I think this may be the last year of flying solo with Turbo Tax. I think the time has come for me to have a professional handle them. Not that I don’t have time nor the patience to do them, I just know there are many deductions that I am missing because I didn’t keep accurate records.
However, now that I am officially working my business full time, I need to make sure that I enter all of my expenses as well as income in a timely and accurate manner. I currently use Wave Accounting for these entries because it’s easy, however, if you know of a better online accounting package, please leave a comment below.
Speaking of expenses and deductions, there are several tax tips and deductions that all bloggers should be aware of and below are the top ten I found on Lifewire.com.
This post is not tax advice and is not intended nor written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
1. Internet-Related Expenses
As a blogger, you may be able to deduct your internet-related expenses. For example, you may be able to deduct:
- Hosting fees for your blog
- Domain name registration fees
- Internet access fees
- Blogging software fees
- Image or music downloads for your blog
2 . Computer Equipment
You may be able to deduct:
- Your computer
- Upgrades such as memory upgrades
- Laptop computer
- Wireless router
- New keyboard, mouse, and monitor
- Software (for example, photo editing software, accounting software, tax preparation software)
- Web camera
- Digital camera
3. Communications-Related Expenses
Many of the communications-related equipment and tools you use to run your blog could be deductible, including:
- Second phone line for your business or fax machine
- Fax machine
- Cellphone calls
- Long distance calls
- Smartphone
4. Office Equipment
Traditional office items can be deductible such as:
- Desk
- Chairs
- Lights
- File cabinets
5. Supplies and Stationery
Little supplies can add up quickly. Keep track of the receipts as these items may be deductible:
- Business cards
- Letterhead
- Envelopes
- Paper clips
- Staplers and staples
- Paper
- Post-its
- Folders
6. Advertising, Promotion, and Design
Most bloggers invest in design, advertising or promotions each year. Remember to deduct applicable expenses such as:
- Blog design (custom blog, header)
- Advertising design
- Logo, letterhead design
- Advertising placement
- Contest prizes
- Promotional giveaways
- Paid site submissions
- Search engine optimization services
7. Travel and Entertainment
If you attend blogging conferences or meetings, you can most likely deduct those expenses:
- Conference fees
- Hotel charges while away on business related to your blog
- Dining charges while away on business related to your blog
- Entertainment for clients you take out related to your blog
- Transportation when it relates to business for your blog
8. Professional Association Memberships and Periodicals
Many bloggers belong to professional associations related to the topic of their blog or to blogging itself. Professional dues may be deductible. Similarly, periodicals and books that you purchase to help you learn and grow could be deductible, including:
- Professional association dues
- Books, magazines, online subscriptions
- Professional website memberships
9. Office Space and Related Expenses
If you work out of your home to conduct your blogging business, you may be able to deduct the rent for your office space from your tax return. Alternatively, if you work from your home, you may be able to deduct a portion of your household bills for that space if you use that space solely to conduct your blogging business. Expenses in this category could include:
- Rent
- Electricity
- Water
- Natural gas
- Security
10. Miscellaneous Other Expenses
There are a multitude of little out-of-pocket expenses that you may be able to deduct as a blogger. Consider the following as you prepare your tax return:
- Costs to reuse photos or images owned by another person or entity
- Headshots used on your blog, website or marketing materials
- Postage
- Post office box if you use one solely for your blogging business
- Safe deposit box if you use one solely for your blogging business
- Fees for professional services such as a lawyer or accountant
Let’s Chat > Do you do your own taxes?