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 IONOS: this is an affiliate link)
- Annual Domain Costs
- Professional Design/Logo Fees (My logo was designed by Jay Bevenour)
- WordPress Plug-ins
- WordPress Premium Themes
- 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 landline related to your blog – the IRS will not allow you to deduct the cost of your primary landline but you may deduct long-distance charges on your landline
- Additional phone lines for business or fax
- Computers for business use (I’m addicted to my MacBook Air)
- Keyboards, mice and other peripheries
- 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
- SmartPhone data charges
- Podcasting software, together with microphone and mixing equipment
- Videocasting software, as well as related production costs
- Business cards and letterhead (remember that printed materials do not have to be professionally printed to be deductible)
- Headshots for a website, or other 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
- 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
- Post office 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
- Books, magazines, newspapers and other subscriptions
- Educational expenses related to your blogging business
- Professional affiliation and membership dues
- Professional informational and research sites
- Conference fees
- Promotional sponsorships – such as golf holes at tournaments
- Charitable donations
- Backup tapes and zip drives
It’s by no means an exhaustive list – you may think of more (feel free to 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.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
Thank you very much! This list is very helpful!
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