Tax‌ ‌Deductions‌ ‌for‌ ‌Podcasters‌ And Bloggers (That You Must Know)

By Veronica Rhodes, Partnership Manager at TFX.

Over the last decade, a rising number of people have supplemented their income through blogging & podcasting. People in almost every field use blogging & podcasting to make a part-time or full-time living. Maybe you enjoy writing, or you’re a natural at shooting photos, or perhaps you just have a talent for sharing intriguing things via audio that people want to listen to.

It isn’t all fun and games, though. Several duties come with earning money from your blog or podcast. Taxes are one of them. Although blogging or podcasting is a comparatively recent job, it is subject to tax regulations as many other professions. The primary tax risk is that, unlike traditional employees, you will not have your taxes automatically deducted from your profits as a self-employed blogger. You’ll also owe self-employment taxes, which most employees fail to pay. However, you may be able to minimize your tax payment by taking advantage of certain deductions.

What Are the Tax Deductions for Podcasters or Bloggers?

When you own and operate a business, you are permitted to deduct business expenses from your taxes. Deductions must be standard and required for your specific sort of industry in the United States. Let’s take a look at some of the different types of expenses you can declare if you run a blog:

1. Start-up Costs

Generally, the costs of starting a blogging business can be deducted from your income taxes. Registration of a domain name, licensing a website theme, or engaging a designer to build up the website for you are all examples of start-up expenditures.

2. Website and Hosting Expenses

Bloggers can deduct ongoing website and web hosting fees as a business expense throughout the year. You can pay for email list management solutions, website security certifications, and backup services in addition to basic hosting.

3. Content Related Expenses

Blog businesses are content-driven, which means that creating content is a regular and necessary part of the business’s operations. As a result, it can be claimed as a tax deduction on your tax returns. Licensing stock imagery, paying for infographic design, or working with an editor are all examples of content expenses.

4. Home Office Expenses

If you meet specific qualifications, your home office can be claimed as a tax deduction. Most bloggers overlook this as a cost-savings opportunity because it appears to be complicated. It is, however, a good tax benefit if you have a separate office space in your home, particularly a dedicated space. The area must be used exclusively and consistently for conducting business, and it must be your principal place of business.

This deduction will not apply if you utilize the dining room table. If you have a dedicated, exclusive office space in your house where you run your blog, you can deduct a percentage of your mortgage, interest, and utilities or take a simplified deduction of up to $1,500.

5. Marketing Expenses

Any marketing cost you pay to advertise your blog is a deductible expense for tax purposes. Paying for a Facebook or Pinterest ad, backlinks to your website, or specific marketing tools are all examples of advertising costs.

The Basics of Taxes: Tax Deductions & Tax Saving Tips for Podcasters

We’ll walk you through all of the fundamentals and better explain some of the most complex aspects of tax deductions and tax saving tips for podcasters so you can get going on your blogging career ambition.

1. Define Your Blog Business

To correctly file taxes for your blog, you must first determine what type of business you are conducting. Many individuals start a blog for no other reason than to have fun. Perhaps you’re chronicling a trip or learning how to cook. Any revenue you generate from your blog can just be recorded as basic other income on your taxes if this is the case. However, as a pastime, you won’t be allowed to deduct any blog-related expenses. On the plus side, the hobby income will not be subject to self-employment taxes.

2. Properly Select Your Legal Blogging Status

Once your blog has progressed beyond the hobby stage, you’ll need to decide on a legal standing for your blogging business. Sole proprietorship, partnership, and limited liability corporation (LLC) are the most typical options for bloggers, but becoming an S-Corp or C-Corp is also a choice.

You don’t have to be lucrative to designate your blog as a company to the IRS. You can have a business loss for 4-5 years before they become suspicious, and if you don’t make more money than you spend after that time, you may have to designate your blog as a hobby.

3. Consider Opening a Separate Bank Account for Blog Income/Expenses

Separating company and personal income and expenses simplifies records management and tax filing. Nothing is more inconvenient than attempting to recall if something was primarily used for personal or corporate purposes and then seeking out the accompanying documentation.

Start by separating your business and personal funds if you really want to save taxes as podcasters. It’s a strong start, even if you use PayPal as your business account and your bank checking account as your personal account. Setting up a business checking account with your chosen bank is the simplest option. Getting a business checking account is a terrific way to show the IRS that you’re a legitimate company.

4. Be Aware of the Different Tax Forms

There are countless methods for people to earn money in this country. As a result, you’ll likely come across a variety of different forms for reporting various types of income. Use Form 1040 to report self-employment income to the IRS. You may be requested to fill out this form with information on your firm’s size, location, scope, and operations, depending on the amount and type of revenue you’ve received. If your podcast is part of a podcast network or is distributed by a media firm, those companies may provide tax forms that you must use to report your earnings to the IRS.

5. Be Thorough in Documenting and Keeping Records of All Income and Expenses

This is another important tax saving tip for podcasters and bloggers. Knowing when and how much you receive or pay is crucial when it comes to running a business. You must document every penny you earn, and any business-related expenses should be kept track of for tax purposes. Keeping accurate records can assist you in avoiding paying more than you need to and give proof if you need it later. You’re probably working as a sole proprietor as a new blogger. This means you’ll be reporting on a cash basis, which means you won’t declare income until you have it.

Tax deductions for podcasters, bloggers, or social media content creators is a topic that many people don’t know about, but it’s crucial to stay on top of your taxes. If you have an interest in learning more about how the IRS views podcasting as an activity and what tax breaks can apply to it, contact TFX. We’ll help make sure you get every deduction possible, so you pay less at the end of the year — which means more money saved towards your goals.

Smart Hustle Resources:

Tax Incentives for Businesses in Different Jurisdictions Across the World

Making Business Taxes Less Taxing in Five Simple Steps

5 Tax Tips New Entrepreneurs Should Know

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