The Value of Tracking Your Blogging Expenses is HUGE!

Last Updated on October 18, 2018 by Jessica Adams

Traditionally, people around the world have set up blogs for purely personal use. Making use of their blog as a way to journal their lives and experiences. Others use it as a means of spreading their opinions about a whole host of subject areas. However, more and more people, like you, have seen first-hand how fruitful the business of blogging can be. You know that by tracking your blogging expenses and studying everything you can find, you’ll be able to launch your own business/profitable blog.

Advertisers are willing to pay high-traffic blogs to use their ad space, for their products and services. Some advertisers are known to pay popular bloggers to directly review a product or service in their posts. There are truly loads of ways to earn money as a blogger. Most importantly, you must remember that if you are earning money from blogging, you need to pay taxes on that income.

Bloggers Have to File Tax Returns Too

Let’s say you’re making money from blogging but you have exceeded your personal tax allowance. As a result, you’re going to have to pay taxes on your earnings. The amount of taxes that you pay will depend on which tax bracket you fall into. If you fail to pay tax on your earnings from blogging, you could be found guilty of tax avoidance. Yep, you read that right! Uncle Sam will always find out if you’re working, even if doesn’t feel like work. Therefore, although you might be paid through PayPal and not a 1099 or W2, you still have to explain that income. Oh, and pay taxes on it!

Bloggers Can Also Claim Deductions on Their Taxes

You can reduce the amount of taxes that you have to pay at the end of the fiscal year by deducting expenses for your business. I know many Bloggers (myself included!) have wondered what exactly we can deduct from our taxes. The infographic below from triplogmileage.com could help you to identify some common tax deductions that you might be able to apply to your own tax return!

Infographic Design By triplogmileage.com