Blogging is a great way to make extra income or to work from home. You get to set your own hours, write about what interests you, and control your earnings potential. However, this type of work does not make you immune from tax responsibility. No matter how much you make blogging, and no matter if blogging is your primary job or just something you do on the side, you will have to report your earnings and pay taxes on them.
Before you get out your tax forms and start filing yourself, consider these reasons why you should hire an accountant to help you instead:
You Have a Greater Responsibility
There are many overlooked benefits to working for someone else — namely, that a corporate employer pays payroll and social-security taxes on your behalf. If you earn more than $400 a year from your blogging work, you are considered “self-employed,” and you will have to pay your own payroll taxes and a self-employment tax. Depending on the type of work you do and how much you earn, you may have other tax obligations. An accountant can help you understand all of your responsibilities and ensure that you are being compliant with the law.
Deductions are Available
You know how so many large companies and the millionaires who run them are able to minimize the amount of taxes they pay? They hire accountants to help them find deductions. You can do the same.
Working for yourself entitles you to a number of deductions, which may include your cell phone bill, Internet service, computers and other equipment, part of your rent, items to give away on your blog, and more. An accountant can educate you about all the deductions to which you are entitled and help you minimize your tax obligation, helping you to keep more of your earnings.
Small Business Guidance
Accountants have expertise in the tax code and can offer guidance about the intricate laws that govern small businesses. If you hire an accountant, you can get advice about best business practices as you grow. For example, you may learn that you need to improve your record-keeping practices, or maybe you’ll learn that buying a computer with energy-saving technology can entitle you to credits. Not only will an accountant help you shape the best tax situation in the current year, but he or she can also help you ensure the best financial health of your business going forward.
Did you overlook reporting earnings one year? Or did you incorrectly report some deductions? If previous reporting errors have resulted in an audit, an accountant can offer you advice on dealing with the IRS and on what your rights and responsibilities are. An audit can result in serious fines and other legal trouble. Hiring an accountant can ensure that you have someone working with you to fight for your interests and minimize the repercussions. If you hire an accountant to help you file your taxes, you are usually entitled to free assistance if an audit of that tax year is conducted.
No matter how much money you make blogging, you are required to report your earnings to the IRS and to pay the appropriate taxes. An accountant can offer you guidance and expertise to minimize your tax responsibility while still ensuring that you are in compliance with all the rules and regulations regarding your business.
Heather Green is a freelance writer for several regional magazines in North Carolina as well as a resident blogger for onlinenursingdegrees.org. Her writing experience includes fashion, business, health, agriculture and a wide range of other topics. Heather has just completed research on health care admin degrees and online physical therapy aide degrees
Thank you, Heather!
–ME “Liz” Strauss
Work with Liz on your business!!