When filing taxes as a small business owner, do you know what the basic tax deductions for bloggers are? I’m sharing a list of the basics.
Disclaimer: I am not a tax professional. This list is simply educational. Please consult with your accountant or tax professional to find out if any of this information would apply to your blogging business.
Basic Tax Deductions for Bloggers
Before we get into the nitty gritty of deductions, I wanted to share a few basic tips. When running a small business (and blogging is that business), it is so important to create a great system for record keeping.
You’ll want to make sure that you are well organized. I use Airtable for just about everything and it helps keep me prepared for the tax season through out the year.
Another thing that I would highly recommend is to find a great accountant. One that specializes or at least understands blogging and expenses involved.
Of course, you could always file your taxes yourself if you feel confident in doing so. I personally prefer to hire this out. I like the peace of mind in ensuring that I am not missing anything.
Also, keep in mind that some places like Amazon Affiliates will give you a 1099 if you earned a certain amount. And others will not.
This is why detailed records are needed and highly recommended.
So let’s dive into the basic tax deductions for bloggers…
This would include expenses related to your hosting company, registering a domain, upgrading plug-ins, backups and storage, scheduling tools, etc.
Make a list of your all of your one time & monthly expenses related to operating your blog.
Certain legal fees related to your blog or business may be deductible. If you hired an attorney for legal services, like creating a contract, for example.
Or if they created any other business related documents or provided any services related to your business.
Fees related to services received from an accountant might also qualify.
Home Office Expenses
You can report a percentage of expenses related to running a home office. Things such as internet, cell phone, utilities, insurance, mortgage or rent are deductible.
Keep in mind that these are percentages, and amounts can vary. A portion of the home must have a dedicated office / work space. And one that is used exclusively and regularly for business.
Some home office supplies can be deductible on your taxes. Keep your purchases organized and check with your accountant on what is acceptable.
Purchasing a new laptop or work computer may be on the list. Paper, pens, filing systems, and more may be included.
Postage and mailing supplies are often things forgotten, but are deductible under office supplies.
Advertising / Marketing Expenses
Are you paying for email marketing? Be sure to track and deduct this expense. Did you pay for an ad on Facebook or Pinterest, perhaps? Those are definitely deductible.
How about purchasing business cards or any advertising related to an event? Things like posters, flyers, and other methods of advertising your business for this event.
Software purchases such as Lightroom and Photoshop for example are expenses to keep track of for tax season.
Any other software programs used to operate a small business, such as accounting software can be deductible.
Did you hire out technical support for your blog? How about someone to design your logo, branding, or theme set up?
What about hiring out a virtual assistant service?
These are all examples of service deductions for bloggers.
Save all those travel receipts! Travel related expenses for your blog business is deductible.
Things like parking at the airport, flights, mileage, and a percentage of meals while traveling are also on the list.
Training / Personal Development
Did you attend a blog conference or other business training event? These educational trainings are tax deductible.
Things like courses, classes, ebooks, and any other training events are deductible. Keep a list of the things you’ve used that help you grow & develop to achieve your business goals.
This list is meant to be a guideline to help prepare you for meeting with your accountant. Each business situation is unique and it would be impossible to give a comprehensive list in a blog post.
I highly recommend keeping great records, saving receipts, and being prepared during the tax season to meet with your accountant.