Tax deductions that you can claim while earning money as a blogger


August 1, 2012 , ,

Blogging is fast becoming a business in its own right. I know a couple of guys who have been running their own networks of nearly half a dozen blogs and treating it as a full fledge business. The fact is that if you are good at keyword selection, writing, Internet marketing, and monetizing, blogging can very well be a money spinning activity that you can carry out from your home, but it is not necessary. There’s a guy who started from a blog on soccer and the site has grown up to a point that he had to rent an office to accommodate the staff working on that blog which has now moved on to become a community. To cut a long story short, if you are blogging full time and earning substantial income, you might want to know about the possible tax deductions that you can claim while earning money via blogging. Do remember that the validity of the following deductions might differ from one case to another, so you must consult with a professional accountant or tax expert before applying.

The Workplace:

Doesn’t matter if you are working from home or a small rented office, chances are that you can ask for it to be regarded as a tax deduction. It might get a little tricky if you are blogging from home on a laptop, because in order to be able to claim tax deduction for your home based office, you will need to have a separate room or workplace, which is used entirely for work purpose. If you are blogging on your laptop from your lounge, that doesn’t really fall under the category of home office, for obvious reasons.

The Equipment:

Everything you purchase exclusively for the work purposes, for example a writing desk, chair and table, even the routine office supplies, are all deductable, as long as you are keeping a good record along with the receipts. Even the stuff that you will purchase as a source for your research, for the material you are about to put on your blog or website, can turn out to be a possible deduction.

Online Expenses:

You can start and maintain a personal blog on a blogging platform without spending a single penny. However, when you are looking to earn substantial income via blogging, you will need to invest quite some bucks on your blogs. Starting from acquiring a domain name to web hosting, web designing charges, or the fees of some SEO professional (if you have hired any), the payment to writers or any other kind of assistants, and the likes. All of these are business expenses and you can claim them as tax deductions.
There are many other possible deductions as well, but the aforementioned ones are easily the most common ones, and they might apply on a majority of full time bloggers. However, you must get in touch with a professional accountant or tax expert, because the rules and regulations might vary in different countries.
Arba Hana is pursuing her degree in business management, in her spare time she writes on topics related to business and finance. At her website, you will find all the information about inheritance tax including facts and tips related to inheritance tax.

0 thoughts on “Tax deductions that you can claim while earning money as a blogger”
  1. Hello

    The blogger is a great location I’m trying to profit from it but even if I never win or fail, I have read and learned a lot … Thanks

    Time ago if you want something you buy magazines or go to see it for yourself … But now everything is on the blogs
    Now, all science is
    Well done beautiful theme

  2. wow! this is a lot of information–i didn’t know that we can claim tax deductions by keeping receipts of home office furniture. I should have kept mine intact had I known of this. I just wonder how many bloggers are following and keeping these tax requirements though.

  3. Without making all investments mentioned here, one simply cannot expect to start making real money that is enough to pay the monthly bills. There are some naive people who still believe that Blogging is easy and can make money overnight. Nice post-thanks for sharing.

  4. Thanks a lot for this article. Tax deduction is what I really need now))
    Do you know the rate of the deduction?

  5. Nice post Arba..
    Reading first time about this very different topic. Tax deductions of home office furniture. I agree with Dipa It’s not possible to make money without investing money. Thanks foe sharing.

  6. Making even just a small investment will be significant enough to launch a blogging career. As for me, I invested in some tools to improve my productivity. Thanks!

  7. I think turning your blog into a business is very much feasible with the right amount of discipline, perseverance and investment. Apart from money, time is your biggest investment. Thanks for giving us your insights on the subject.

  8. It is simply stated that to make money one has to first spend it.Although the amount to be spent depends on the type of your blog and competition.
    The way you have described how tax deductions can be claimed, i am impressed.
    I didn’t know about this stuff earlier,but now i know what to do after getting this information.

  9. Blogging can certainly be a business for many people. It is entirely possible to have your blog (or group of blogs) actually support yourself. In fact, if you actually treat your blog(s) as a business than you should be able to claim a number of different expenses as tax deductions.

    I think that the most important point here is to actually treat your business as a business. Most people start off blogging as a hobby and treat it as such. In order to really start claiming tax deductions, you must start documenting everything, like the money spent for the computer, the hosting and all the other online expenses.

  10. Thanks for the information, I’m sure quite a few people didn’t realize that buying furniture for their home office is something that they could write off on their taxes.

  11. Thank you for your blog, it really helped me out. Having other ways to deduct my taxes is a really great thing. There is no reason not to follow these steps, your paying less taxes!!

  12. There are so many expenses that can be utilised when bloggers are seeking to reduce their tax liabilities and this is a legitimate method of making sure that you don’t pay too much tax. I’m an accountant and I always recommend claiming all allowances and expenses when filing your taxes.

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