Blogging, as a new profession, has the same tax laws that govern many other occupations. By taking advantage of certain tax deductions, you may be able to reduce your yearly tax burden.

A new career, blogging, has the same tax regulations that apply to many other professions. The main concern from a tax aspect is that if you are a self-employed blogger, unlike typical workers, your taxes are not deducted from your profits. You’ll also have to pay self-employment taxes, which aren’t paid by most employees. 

You may, yet, be able to cut your tax payment by taking advantage of certain deductions, here’s how.

 

1. Be aware of estimated taxes.

 

 

Because you’re a blogger, you’re still taxed yearly, which isn’t a problem for most conventional employees, you should be aware of this.

In the United States, pay-as-you-go taxes are the standard. Because there is no reduction of taxes from your blogging income, you must pay estimated taxes to the IRS every quarter.

Each year, estimated taxes are due on the 15th of April, June 15, September 15, and January (with some exceptions for holidays, etc.). If you don’t pay your taxes on time, you may be subject to an extra tax penalty. If you didn’t owe any taxes in the previous year or didn’t owe more than $1,000 in taxes, you may be able to avoid paying them.

 

2. Use tax on self-employment.

 

 

Don’t forget to put money away for self-employment tax when you’re saving for your expected income taxes. Working as a blogger, according to the IRS, entails running your own business.

The blogging part of your income qualifies as self-employment income even if you only work part-time as a blogger and full-time as a paid job somewhere else.

 As a result, you must pay self-employment tax on that income, which is the sum of an employee’s and employer’s Social Security and Medicare taxes. You must pay both the employee and the employer parts because you operate your firm. Regardless of whether you owe any federal income tax, you must pay self-employment tax.

 

3. Deduct costs to your trade.

 

 

There’s a plus side to having a blog business: you may deduct reasonable and necessary costs to your trade. You can deduct your costs as a blogger as long as it relates to your business such as; 

• Advertising
• Supplies
• Office furniture
• Electronics
• Insurance
• Other products and services. 

You may be able to deduct some of your domestic expenditures, such as rent and utilities if your office is located in your home.

 

4. Register your business as a part-time job.

 

 

If your blogging company is classified as a hobby, the IRS will deny you a tax deduction. 

You must show the IRS that you are running a legitimate business to claim your deductions. Earning a profit is the clearest method to show this. You may normally classify your firm as genuine if you made a profit in at least three of the last five tax years.

The time and effort you put into your business, whether or not you rely on it for income, and whether or not you can reasonably expect generating a profit in future years are all factors that the IRS may test.