Blogging entails a number of benefits for people who love writing and are comfortable being self-employed. The benefits include zero hassles associated with reaching office on time to the flexibility to set your own hours. Bloggers still have tax obligations like people in other professions. The difference is that, as a self-employed person, no one withholds your taxes and, unlike in the case of traditional employees, you owe self-employment taxes. Self employed people, such as bloggers, can also claim certain deductions to reduce their tax obligations. An experienced tax lawyer or CPA can help provide more information on all tax obligations you have as a blogger, and the deductions you are entitled to claim. In the meantime, let’s learn a bit more about the subject in this blog post.
Estimated Taxes
Bloggers, unlike traditional employees, must pay estimated taxes to the IRS on a quarterly basis. The due dates for estimated taxes are April 15, June 15, September 15, and January 15 (holidays excluded). If you fail to pay estimated taxes before the due date, you will have to bear tax penalties. There are certain conditions under which you can, however, avoid estimated tax obligations, such as when you think that you will not be able to earn at least $1,000, or if you did not have any taxes due the previous year. To get more tips and help with such IRS tax matters, get in touch with a reputable tax attorney.
Self-Employment Taxes
According to the IRS, being a blogger is akin to running your own business. Even if you are a part-time blogger, you owe self-employment taxes on whatever income you earn from your work. The self-employment tax is the total of Medicare and Social Security taxes, which both, the employee and the employer are obliged to pay to the IRS. Professional bloggers must pay both portions of the self-estimated tax. Bloggers are liable for self-employment tax, regardless of whether or not they owe any federal income tax.
Must Read:- Self-Employment Taxes You Can’t Afford To Ignore
Non-Taxable Expenses
While bloggers have to pay self-employment taxes, the IRS allows them to deduct a number of expenses from their income that are deemed reasonable, allowing them to reduce their taxable income. These expenses include office furniture, advertising, insurance, electronics, supplies, or other goods and services that are part of their business. If you work from home, the IRS may also allow you to deduct some of your household expenses such as utilities and rent.
Must Read:- A Brief Guide To Taxable And Non-Taxable Incomes
Conclusion
Any blogger looking for tax deductions must first prove to the IRS that their blogging business is genuine. One way to prove this is to earn a profit. If you show that you earned a profit in at least three out of the previous five tax years, it is proof that you are running a bona fide business. If you owe the IRS and are in need of an attorney call The Law Offices of Nick Nemeth at(972) 426-2553. Or for a free tax analysis, click here, and we will get back to you shortly.
