If you’re accepting any type of payment for your blog, you should be prepping your business for tax season. One of the things that’s good to know as a blog business owner is what is considered an expense, and what is not. Here is a shortlist of some of the things you may pay for during the course of a year with your blog that can be added to your expenses.
Why is it important to keep track of these things? Approved expenses will help reduce your adjusted gross income (AGI) which results in a lower tax liability. So keeping track of every receipt and transaction is not only good for knowing your net profit but even better come tax time and writing that check to the IRS.
Here’s a list of common blogging expenses that you may want to make sure you’re recording.
Things You Can Expense
- Blog Memberships – Your TBS membership qualifies for that!
- Tickets to attend blog conferences
- Your camera equipment
- Software like Photoshop and Lightroom
- Monthly programs like Tailwind and Flodesk
- Payment to your photographer
- Travel that’s related to your blog
- Bank fees like PayPal or monthly business bank fees
- Office supplies. i.e if you send thank you cards to brands, you can expense the stamps and notecards
- Anything related to your website like hosting fees and designer templates
- Meals while traveling for your blog or during work meetings
Things You Can Not Expense
- Clothing and accessories that you purchase to wear on your blog
- Makeup and beauty products
- Any grooming expenses like haircuts, facials, manicures and so on
- The drink you had while working at a coffee shop by yourself
Many people believe that their clothing, accessories, and grooming are expenses but they are in fact not. The IRS considers these to be proper grooming expectations that all employees should follow. Unless a brand specifically asks you to purchase something for a project, it is not directly related to your business. For example, if your a hairdresser and your salon require you to wear all black for your uniform, any clothing you purchase for that job is then considered an expense.
Please be sure to consult your tax accountant to confirm your appropriate expenses and how to properly deduct them for your taxes. We highly recommend working with Amy Northard.