For five years, I have used blogging to build a career, land talk show interviews and boost my business -- all while helping other folks boost theirs. However, it’s not all about the money…it’s also about the tax benefits. If you are tired of forking over every hard earned dime you make to Uncle Sam, why not reap the rewards of the tax benefits that go along with blogging?
Benefit #1: Variable Income Sources (Shhhhh….this one is a secret!)
Any 1099 you receive for less than $500 does not need to be reported on your income taxes. At all. Let me break it down for you mathematically:
I do have to report all of my passive earnings from my blogs, as they exceed the $500 annual limit, as well as my income from all of the affiliate programs I work with for the four blogs I have, I train to over 40 different pay to blog platforms. I also write for all 40 different platforms until I hit that threshold of $500 on each one.
$500 x 40 = $20,000 a year that I don’t have to report to the IRS because I am a 1099 contractor for each, individual site. In fact, for some of these sites, I don’t even receive a 1099 because I didn’t meet the $500 limit. And I do love some free money.
Benefit #2: You Can Write Off Your House – Well, a Portion of it Anyway
As a Blogger, I can write off 25% of the house as an “office”. Whatever improvements I make to the house or to the office can also be written off. Big savings.
Benefit #3: You Can Write Off Portions of Several Bills
Electric, water, trash and sewer: I write of a portion of each one.
Benefit #4: You Can Write Off Your Computer, Laptop and Tablet
I write off (or take depreciation) for my computers, laptops and tablets. Whenever I buy a new one? I can write that off as well – assuming it is within the same calendar year.
Benefit #5: You Can Write Off Your Cell Phone
Since I use my cell phone primarily for business, I write that off as an expense, in addition to my monthly bill. Since I enlist my children to assist me in some endeavors, I can also write off whatever money I give them as an employee expense – providing I give them a 1099 at the end of the year (which I do).
Benefit #6: You Can Write Off Meetings (Travel, Food, Beverages)
Do you want to have lunch? It’s on me. Why? Because I can write that off too, providing that I discuss business during said event – which I typically do anyway. I can write off travel locally and nationally, as well as food, beverages and other items on my tax return, or even get a per diem credit for some of it. Not too shabby, if you ask me.
Benefit #7: You Can Umbrella Your Earnings
I umbrella all of my earnings in my LLC, and pay taxes out of that, but I also 1099 myself and pay myself a salary. Having separate business and personal accounts is vital to your success, and something I highly recommend.
I know, I know, I can hear your eyes rolling.
But having separate accounts doesn’t need to be complicated. Since most of the sites I write for use PayPal to pay me, and I invoice private clients the same way, I use my PayPal account as my dedicated business account, and pay myself (into my back account) a salary from that.
So, why aren’t you blogging again?
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