3 Ways To Nail Your Taxes As A Blogger
It's tax season, and if you're a blogger you might be slightly overwhelmed. Fear not, because Erin Armstrong is here with 3 tips for getting the most out of your tax deductions as an influencer. Erin is a Small Business Tax & Money Coach, meaning she loves helping out small business owners with their financial questions!
Keep scrolling to hear Erin's tax advice and learn more about her free workshop she's hosting if you need more help with your taxes.
1. Think Of Yourself As A Business
Put on your business thinking cap. Often people who identify as a blogger or creative don't think of themselves as a business owner. Sometimes that's because they're operating as a sole proprietorship and have an idea that a business operates as a corporation. Other times, it's because they're following their passion, so for some reason it doesn't mentally count as a business.
Whatever the reason, if you’re not thinking business, you're leaving money on the table (this includes everything from negotiating good payment, to avoiding accrued penalties, to deducting business expenses).
2. Be Thorough
Claim all the income you were paid for the year--don't skimp! When you don’t receive a 1099-Misc or a W-2 from a client, it can be tempting to think that you don't need to report that income... unfortunately, not only is that illegal, it can open the doors to financial audits down the line for you. Not fun. Plus, you'll owe penalties and back taxes on the money you didn't claim later.
3. Deduct To The Max
Make sure you're claiming all the tax deductions you could be for your blogging business! In other words, maximize your tax deductions. You can find a good starting checklist here.
I'm really passionate about business tax deductions because claiming everything you're legally entitled to can easily be the difference in you keeping tens of thousands of dollars each year or paying it to the government. No joke. Often creatives and very small businesses (think 1-2 employees) don't give a second thought to their deductions. Whether you make 4 figures in a side-hustle or major dollars, learning what you can and can't deduct can make a huge difference in the financial return you receive from your business.
More Tax Resources From Erin!
Still in need of more tax help? Erin has a free online workshop if you want to learn how to save thousands of dollars a year by maximizing your tax deductions! Join Erin's free 4-part Tax Deduction Workshop series where you'll:
Immediately learn to qualify for, deduct, & document the home office deduction (this info generally saves small business owners & freelancers $3k - $9k each year)
Get dozens of helpful & little-known tips regarding 74 of the top business tax deductions (your implementation of this material will help you deduct more and withstand audits
Walk-through 3 real-life examples of small business owners maximizing their tax deductions (you'll see exactly how much money save each year by doing this--thousands--and sometimes tens of thousands of dollars)
Gain awareness of why you should be considering business tax deductions throughout the entire year (hint: think more lucrative for you!)