Blogging and taxes

Well, it's that time of year for U.S. citizens — tax time! Bloggers are kind of a special lot when it comes to taxes, which can make figuring out how to file tricky.

I've recently read some good articles about bloggers and taxes:

• Blogs and Taxes - What Bloggers Need to Report as Income from The WiC Project
• Taxes 2011: Mrs. CPA Answers Your Questions Regarding Blogging and Taxes from Mom In The City
• All About Sweepstakes Taxes (you'll see why this is relevant when we get into giveaway wins and product review items below)

I'm combining what I've read there with my own experience doing our family's taxes (currently an online sales business as well as my income, such as it is, from blogging), and managing the Natural Parents Network finances, to write about some of the special situations affecting bloggers:

Click any link to jump to that topic.
• Business vs. hobby
• Business structure (sole proprietorship being the easiest to handle)
• Reporting goods received as income (including review products and giveaway wins)
• How to report conference swag or sponsored trips
• Doing your own recording and reporting, and minimum income required to report (unless you make a lot or are directly employed by a company, no one's sending you an easy-to-handle form such as a 1099 or W-2, so you're on your own)
• Deductions for bloggers
• Cash accounting vs. accrual and what makes sense for you
• Estimated taxes and the penalty for not paying them
• Business licensing in your local area
• Sales taxes on items you sell (such as in an Etsy shop) to supplement your blogging income
• Amending your return to include unreported income or deductions

Please, please take what I'm about to say seriously: I am not a tax expert. I am not an accountant or tax professional of any kind. I was an English major, for crying out loud. Please use the information in this article solely as a springboard for you to do your own research regarding your specific tax situation. If you're fortunate enough to have a CPA or other expert to turn to, perfect. If you don't, you can call the IRS directly to ask any specific questions or go in person to a local Taxpayer Assistance Center. You can also use IRS.gov to find specific tax forms, publications, and regulations.