Close
Close

46 Tax Deductions that Bloggers Often Overlook

Tax-Deductions-Bloggers-1This guest post on Tax Deductions for Bloggers is by Kelly Phillips Erb from Tax Girl.

Want to learn more about how to make money blogging? Subscribe to ProBlogger today for free.

The most popular question in response to my guest post on Problogger last time was invariably some form of “Can I deduct…?” It makes sense. Figuring out what constitutes income in the blogging world is pretty easy. But what constitutes a proper deduction is another story – and bloggers usually err on the side of not deducting enough (and not the other way around).

Don’t get caught leaving money on the table. Here’s a list of potential deductions that you might have overlooked. Consider:

  1. Monthly Hosting Fees
  2. Annual Domain Costs
  3. Design/Logo Fees
  4. Internet access fees – this clearly includes DSL and dial-up, but don’t forget charges that you might pay away from your home or office such as wi-fi charges in Internet cafes
  5. Paid blogging platform charges (such as Typepad monthly charges or “add ons” through WordPress)
  6. Cell phone usage
  7. Long distance usage related to your blog – remember that the IRS will not allow you to deduct the cost of your primary land line but you may deduct long distance charges
  8. Second phone line for business or fax
  9. Design or word processing software – this includes Photoshop, Illustrator, Word and similar programs for business use
  10. Computers
  11. Keyboards, mice and other periphery
  12. Web cameras
  13. Digital cameras – and memory cards
  14. Film processing for traditional cameras
  15. Costs paid to use or reproduce images
  16. Downloaded music or other audio
  17. Blackberry, Treo, iPhone charges
  18. Business cards
  19. Headshots for web site or promotional materials
  20. Letterhead – remember that printed materials not be professionally printed to be deductible!
  21. Promotional stickers and items – Frisbees, magnets, etc.
  22. Web advertising – text and banner ads
  23. SEO services
  24. Paid site submissions
  25. Prizes for giveaways and contests
  26. Postage – it’s impossible to keep track of every single stamp that you use in your business, so buy a sheet or two and keep them in a folder just for business use
  27. Post box fees – I recommend this if you’re working from home, it looks professional, it’s inexpensive and it keeps sales people from showing up on your doorstep late at night (trust me, MCI has seen me in my pajamas)
  28. Transportation – this includes mileage for car transportation, train and bus fare for public transit, cab fare, airline tickets
  29. Dining while away on business
  30. Hotel charges for overnight conventions and business travel
  31. Entertainment for clients
  32. Professional advice (from lawyers, accountants and tax preparers)
  33. Tax software
  34. Accounting software
  35. Copy paper, memo pads, photo paper
  36. Office supplies – pens, folders and post-its can add up!
  37. Books, magazines and subscriptions
  38. Professional affiliation and membership dues
  39. Professional informational sites (like imdbPro)
  40. Paid research sites (like LEXIS/NEXIS)
  41. Trademark fees and related costs
  42. Conference fees – such as for BlogHer and BlogExpo
  43. Promotional sponsorships – golf holes at tournaments, that sort of thing
  44. Charitable donations – limited to the cost of the production, not the FMV of the final product (in other words, if you blog about quilts and you donate a quilt, your deduction is limited to the cost of the quilt materials, not the FMV of the quilt)
  45. Backup tapes
  46. Zip drives

It is by no means an exhaustive list – you make think of more (feel free to add them below). The key is to make sure that the expenses are related to your business. They should also be both “ordinary” and “necessary” (a wide screen TV might feel necessary for your sports blog, but likely isn’t according to the IRS) for your business – if you’re not sure, ask other similar bloggers what they do. You can get some good advice and make great contacts at the same time!

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation. If you have a question, ask the taxgirl.

About Darren Rowse

Darren Rowse is the founder and editor of ProBlogger Blog Tips and Digital Photography School. Learn more about him here and connect with him on Twitter, Facebook, Google+ and LinkedIn.

Problogger.net runs on the Genesis Framework

Genesis Framework

The Genesis Framework empowers you to quickly and easily build incredible websites with WordPress. Genesis provides the secure and search-engine-optimized foundation that takes WordPress to places you never thought it could go.

Check out the incredible features and the selection of designs. It's that simple - start using Genesis now!

Comments

  1. Dereks says:

    It’s impressive how that list may change if you live in third-world country. The fact I live in Ukraine gives me right to cross-out nearly half of that list.

  2. Eliza Amos says:

    I wonder how fuzzy this gets when blogging doesn’t make me money, but rather supports the writing venture that constitutes my primary income.

    Either way, I’m SO glad I found this. Wish I’d saved more receipts this year.

  3. Miki says:

    Eliza, Kelly would know, but it seems to me that if your blogging counts as PR then it would be a business deduction.

    What about it, Kelly?

  4. Jenn says:

    This is a really awesome list. Considering I pay $55/month for my reseller account, which provides the hosting for the blogs I use to make income, AND that I purchased a digital camera few months back, which I use on a weekly basis for pictures, this is a big help.
    Thank you!

  5. katy says:

    this is a great list, and very helpful. but here’s a question i’ve been trying to figure out — for my food/cooking blog, is the cost of the ingredients i use deductible? say, if i have a dinner party and cook three dishes, and all three go up on my blog, but are also eaten by me and my guests, are they deductible?

  6. bhupen says:

    There is a lot of discussion here but no clear answer. Here is a question. What do you advice if your say earning yearly is around $2K or $3K from google. How much of that can be deducted ? Hosting, Domain Renewal, etc is clearly understood but what else? A book or CD you purchased to learn .php ? would that count? Also say your money from google is now combined from your youtube partner program? would the purchase of a new camcorder you did count ? How much ?

    Anyone here giving an approximate answer to this question ?

    What % of of the income you make from Google can be deducted ? Anyone ?

  7. Exellent, now I will get some more money back from my taxes :-)!!