Running your own blog can be both rewarding and challenging. You have the satisfaction of being your own boss, working on your own schedule, providing for the family, and and meeting your career goals.
With this satisfaction comes the challenge of balancing your work schedule, spending time with the family, and keeping track of your finances. And although you are able to provide for you and the family, expenses you incur everyday to run your blog can really add up.
- Travel Expenses for Conferences and Events – Did you travel for a conference? As bloggers we are constantly working to improve our skills or expand our professional network. If you traveled for a conference, you may be able to deduct your travel expenses as long as your travel was directly related to the business purpose and you were not reimbursed. This may include airfare, mileage, and hotel expenses. Don’t forget about the fee you paid for the conference!
- Child and Dependent Care Credit – Do you pay someone to take care of your kids so you can run your business? If you have children under the age of 13, you may be able to claim a tax credit if you pay someone to care for them while you are working. The credit can be worth up to $1,050 for one child or $2,100 for two or more. This includes dropping them off so you can go to a conference too. With summer coming up, you’ll be glad to know that summer day camps qualify too.
- Home office deduction: So you are lucky enough to blog in your PJs if you want. Another stroke of luck comes with the tax benefit of being able to deduct your home office. If you have a dedicated space used only for business in your home, you can deduct a percentage of home expenses, including mortgage payments, utilities and property taxes based on your percentage of business use.
- Start-up costs: If you just started your blog last year congratulations! If you have a newly formed blog you may be able to deduct start-up costs, including legal fees, cost of experimentation and advertisements.
- Vehicle expenses: In addition to the mileage deduction and other expenses, you may be able to deduct a big portion of what you paid for your car for the first year you used it for your business.
- Health insurance premiums: You may be able to deduct what you pay for medical insurance for you and your family without having to itemize your tax deductions or being subject to the threshold limits that W-2 employees are subject to.
- Equipment: If you purchased a computer or other equipment, like a tablet or cell phone for your business, you can take a deduction in the year you purchase it if it was used exclusively for business. Up to $500,000 worth of equipment is eligible for immediate expensing in the tax year you bought it.
- Office Supplies: While most of your work is done online, you may have to replenish office supplies like copy/print paper, printer ink, and pens. The IRS also gives you a break for these expenses..
- Website Expenses: Running a website often means paying for hosting, the domain name, and possibly privacy services. You can deduct these expenses to keep your blog going.
Don’t worry about knowing how to calculate these tax deductions. TurboTax will ask you simple questions about you and your business and do the calculations for you based on your entries. There’s no need to know the tax laws or forms.