Taxpayer asks:
Hi Kelly, I saw you speak at BlogHer in San Francisco and was hoping I’d see you again this year in Chicago. Since I didn’t see you, I thought I’d email you a question. I just wanted to know if you had any updates to your handout from the BlogHer seminar about deductions for bloggers. I used it as a checklist before and just want to make sure that I’m not missing anything. Thanks! 
Taxgirl says:
Nope, I didn’t make it out to BlogHer last year. I wasn’t asked to speak at this one and it was a busy summer so I opted out. Maybe this year… it’s in New York City just up the train tracks from Philly.
As to your question, I’ve revamped the list a bit, as well as included some info about what I use since I’m asked from time to time. Here you go:
- Monthly Hosting Fees (I’m hosted at 1&1)
- Annual Domain Costs
- Professional Design/Logo Fees (My logo was designed by the brilliant Jay Bevenour)
- WordPress Plug-ins
- WordPress Premium Themes (I use Thesis for WordPress)
- Offline blogging software (I’m a big fan of Mars Edit from Red Sweater)
- Design or word processing software – this includes Photoshop, Illustrator, Word and similar programs for business use
- Internet access fees – DSL, satellite and (gulp) dial-up, as well as charges that you might pay away from your home or office such as wi-fi charges in internet cafes
- Paid blogging platform charges (such as Typepad monthly charges or “add ons” through Blogspot)
- Cell phone usage
- Long distance charges on a land line related to your blog – the IRS will not allow you to deduct the cost of your primary land line but you may deduct long distance charges on your land line
- Additional phone lines for business or fax
- Computers for business use (I’m addicted to my MacBook)
- Keyboards, mice and other periphery
- Web cameras and digital cameras, including memory cards
- Film processing for traditional cameras or other costs paid to use or reproduce images
- Downloaded music or other audio
- Blackberry, Treo, iPhone data charges
- Podcasting software, together with microphone and mixing equipment (I’m trying Garage Band)
- Videocasting software, as well as related production costs
- Business cards and letterhead (remember that printed materials not be professionally printed to be deductible)
- Headshots for web site or promotional materials
- Promotional stickers and items like USB sticks, magnets, etc.
- Web advertising such as text and banner ads, as well as traditional advertising
- SEO services (I recommend Seer Interactive)
- Paid site submissions
- Social media premiums, such as LinkedIN Pro
- Prizes for giveaways and contests that you pay for (you can’t deduct the cost of donated prizes)
- Postage (I’m a big fan of Endicia – it’s online and plays well with Mac, we use a separate Dymo printer)
- Post box and storage fees
- Business use of your home
- Transportation, including mileage for cars; train, subway and bus fares; cab fare and airline tickets
- Dining while away on business
- Hotel and meal charges for overnight conventions and business travel
- Entertainment for clients
- Professional advice (from lawyers, accountants and tax preparers)
- Start-up and incorporation costs
- Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names
- Tax and accounting software
- Office supplies, including copy paper, memo pads, pens, folders and post-its (it can add up!)
- Books, magazines, newspapers and other subscriptions
- Educational expenses related to your blogging business
- Professional affiliation and membership dues
- Professional informational and research sites (like imdbPro or LEXIS/NEXIS)
- Conference fees – such as for BlogHer and BlogExpo
- Promotional sponsorships – such as golf holes at tournaments or BarCampPhilly
- Charitable donations
- Backup tapes and zip drives
It’s by no means an exhaustive list – you may think of more (feel free add some suggestions in the comments below).
And remember that not all expenses are taxed the same way. Some expenses, like meals and entertainment, may be subject to limits and others, like start up costs, may need to be amortized rather than deducted. How much you can deduct will also depend on whether you’re operating as a business or a hobby. Keep a detailed list of your expenses and your tax professional or tax software should be able to sort it out for you.
The key is to make sure that the expenses are related to your business. They should also be both “ordinary” and “necessary” 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.
Have a question? Ask the taxgirl! – Now on Facebook at http://www.facebook.com/taxgirl
Similar Posts:
- Ask the taxgirl: Deductions for Guest Blogging
- Ask the taxgirl: Defending My Blog
- Ask the taxgirl: Am I Blogging as a Business or a Hobbyist?
- Ask the taxgirl: Paid Campaigns for Bloggers
- Ask the taxgirl: Freelance Deductions
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Thank you very much! This list is very helpful!
Tax credit for summer camp for working mother
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