Hello! Today I’m sharing a post from a blogging friend. Jackie is a licensed attorney in Pennsylvania who has been writing at Jade and Oak for more than three years, focusing on helping bloggers grow their sites while staying on the right side of the law. I often get questions about legal issues, blogging, and taxes, so this topic is a perfect fit. Enjoy!
Taxes aren’t the most exciting subject. They can be confusing, tedious, and overwhelming for many people. But not understanding tax rules can actually cost you money.
Here’s a clear, practical overview of what bloggers and freelancers need to know about taxes. I’ll keep it straightforward and practical. This article is written with U.S. tax rules in mind, but the principles about tracking income and expenses can be useful for international readers as well.
(P.S. A quick disclaimer: although I am a licensed attorney, I am not your attorney. This article does not create an attorney-client relationship and I am not liable for losses or damages from relying on this information. For specific legal or tax advice, consult a qualified professional in your jurisdiction.)
Blogging and self-employment
If you blog for income or take freelance work, you are considered self-employed. That means you don’t have an employer withholding taxes from a paycheck. The IRS still expects payment, so you must manage tax obligations yourself.
The U.S. tax system is “pay as you go,” which is how taxes are funded during a traditional job. As a self-employed person, you are responsible for paying estimated taxes quarterly. Failing to pay estimated taxes on time can lead to penalties.
Not everyone must pay estimated taxes, however. If you had no tax liability last year or you don’t expect to net at least $1,000 in profit from your blog this year, estimated payments may not be required. Additionally, you don’t need to report self-employment earnings unless your net income (after expenses) reaches $400.
Even if you’re not earning much yet, start tracking all income and expenses now. That record-keeping makes tax time much easier and helps you claim all legitimate deductions later.
So, what is self-employment tax exactly?
In a traditional job, Social Security and Medicare taxes are split between employee and employer. As a self-employed person, you are responsible for both shares—essentially paying what you and an employer would have paid together. This is known as self-employment tax.
Self-employment tax applies even if your blog is a side business alongside a full-time job. On the positive side, you can deduct half of your self-employment tax as an adjustment to income, which reduces your adjusted gross income and overall tax liability.
Filing taxes as a blogger
When you file your personal tax return, bloggers and other self-employed individuals also typically file Schedule C to report business profit or loss, and Schedule SE to calculate self-employment tax. You can complete these forms on paper or through tax software. If you’re unsure or want to make sure you’re maximizing legitimate deductions, consider working with a tax professional.
Tax deductions for bloggers
Bloggers operate like any small business and can claim business losses. The IRS expects many new businesses to lose money in their early years, and if your expenses exceed income you may report a loss. If you have other income, that business loss can offset earnings from other jobs and reduce your taxable income.
The key is that deductible expenses must be “ordinary and necessary” for your business. For blogging, common deductible items include:
- Advertising and marketing,
- Office supplies,
- Office furniture,
- Electronics such as computers and cameras, and
- Goods or services purchased for the business.
If you work from a room in your home, you may qualify for a home office deduction for a portion of rent or mortgage interest, utilities, and other household expenses. There are specific rules and formulas to calculate the deductible amount; most tax software can assist with this.
Equipment like phones, cameras, and computers can be deducted, but they may be treated as depreciable assets. Deductions depend on whether these items are used exclusively for the business or also for personal purposes. Keep clear records of business use percentage.
Educational costs related to your blogging business—such as courses that improve your blogging skills—and subscriptions or software (for example, email services, photo editing programs, or premium plugins) are typically deductible when they’re ordinary and necessary for your work. Other deductible expenses may include web hosting, domain fees, theme and plugin purchases, virtual assistant fees, graphic design, and a portion of your Internet bill.
Always evaluate whether an expense is genuinely business-related before claiming it. You don’t want to miss legitimate deductions, but you also should avoid claiming personal expenses as business deductions.
What if my blog is just a hobby?
If the IRS classifies your blog as a hobby rather than a business, you cannot claim business deductions. The IRS looks at several factors to decide whether an activity is a business, including:
- Whether you’ve earned a profit (making a profit in at least 3 of the last 5 years is a strong indicator of a business),
- The time and effort you put into the activity,
- Whether you depend on the income from the activity, and
- Whether you have a reasonable expectation of future profits.
If you label your blog a business solely to claim tax benefits while not actually trying to make a profit, the IRS may disallow that treatment. Be truthful with yourself and the IRS about the purpose of your blog.
That covers the essentials bloggers should know about taxes. This is a broad area, so this article offers a practical introduction rather than an exhaustive guide.
Author bio: Jackie is a licensed attorney in Pennsylvania who has blogged at Jade and Oak for over three years. She helps bloggers build their sites and avoid legal mistakes. When she’s not writing, she spends time with her husband Jarrod and their two pugs, Bowie and Rosie.
Do you have a blog? What legal or tax questions would you like Jackie to answer?