Blog Income: Tax Question

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Permalink Reply by Angie on February 4, 2011 at 7:53pm

I have had a home business since 2001 and have always declared my business on our taxes.  IF you want the benefits of running a business you must declare all income.  Definitely best to speak with a tax adviser (of which I'm NOT LOL) or consult with Turbo Tax Home and Business ha ha  We have used that every year!  I have not personally formed an LLC.

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Permalink Reply by Rachel Anderson on February 4, 2011 at 8:40pm

Thanks for the info.  I definitely plan on claiming the income, I wasn't trying to to say otherwise :-)    I am trying to figure out if its best to officially form a business, get a tax ID for it and claim the income that way instead of claiming in personally, that way a lot of expenses involving the blog could be written off, reducing the taxable income and tax liability.

Angie said:

I have had a home business since 2001 and have always declared my business on our taxes.  IF you want the benefits of running a business you must declare all income.  Definitely best to speak with a tax adviser (of which I'm NOT LOL) or consult with Turbo Tax Home and Business ha ha  We have used that every year!  I have not personally formed an LLC.

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Permalink Reply by Angie on February 4, 2011 at 8:45pm

Oh didn't mean to imply that you were. Just mentioned it because a lot of people think that if they don't make over $600 they don't have to claim but if they want the benefits of a home business they have to.  I am going to be getting a tax id but have been using my social since the beginning and it's been fine BUT it's not the safest way so I would probably say a tax id is recommended.

Hubby my tax man so I don't know too many specifics *wink*  I just make the dough and this year he'll tell me what I owe ha ha

Rachel Anderson said:

Thanks for the info.  I definitely plan on claiming the income, I wasn't trying to to say otherwise :-)    I am trying to figure out if its best to officially form a business, get a tax ID for it and claim the income that way instead of claiming in personally, that way a lot of expenses involving the blog could be written off, reducing the taxable income and tax liability.

Angie said:

I have had a home business since 2001 and have always declared my business on our taxes.  IF you want the benefits of running a business you must declare all income.  Definitely best to speak with a tax adviser (of which I'm NOT LOL) or consult with Turbo Tax Home and Business ha ha  We have used that every year!  I have not personally formed an LLC.

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Permalink Reply by JulieK on February 4, 2011 at 10:56pm

Oh I am curious about this also - I made under $600 (WELL under LOL) and I was planning on claiming it as "hobby" income... If you get a tax ID you have to pay estimated taxes, and that is hard to do when you're never sure when you'll have a paid post or campaign, etc. I am curious if anyone else claims their as hobby or "other" income. Of course, I will be using H&R block premium service where I have contact with a live tax professional and I'll discuss this with her as it's my first year making any cash.

 

Another question - what about "cash" that is sitting in affiliate accounts or like Sponsored Tweets - if I haven't cashed out, do you know if I have to claim that?

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Permalink Reply by JenReg on February 5, 2011 at 12:01am

Oh that is a good question on the affiliate accounts - I hadn't thought of that!  I am going to be calling my tax guy soon to see how I should claim my blog earnings.  It would be incredibly difficult to do estimated taxes...ugh.

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Permalink Reply by Carol Lawrence on February 5, 2011 at 1:01pm

That is a good question. If the money has not been paid out to you and isn't in your bank account it shouldn't count yet because it's not officially yours until your paid. That's my thoughts. What does everyone else think?

JenReg said:

Oh that is a good question on the affiliate accounts - I hadn't thought of that!  I am going to be calling my tax guy soon to see how I should claim my blog earnings.  It would be incredibly difficult to do estimated taxes...ugh.

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