If you make money from your blog in any way, figure out if you should be filing for self-employment taxes. (2024)

FAQs

If you make money from your blog in any way, figure out if you should be filing for self-employment taxes.? ›

In short, are you in business for yourself? If you are a blogger you are most likely are a self employed business. If you accept payment for your blogging activities and don't work for someone else, you are self-employed. This doesn't need to be full time either, part-time activities count too.

Since you're self-employed, you pay both the employee and the employer portions of your Social Security and Medicare taxes on your blogging income (known as the self-employment tax). Self-employment tax is calculated separately from income tax on your tax return.

Many expenses go into a business. As bloggers are self-employed, they can deduct the costs of items and services that are necessary for their business.

As an online content creator such as a blogger or social media influencer, you may be considered an independent contractor. Per the IRS, if you are an independent contractor, then you are self-employed. As an independent contractor, your income will be reported on a 1099 rather than a W-2.

If you earn more from your writing than you spend in a given year, you pay self-employment taxes on your “profit.” But if you spend more than you take in, you can use this “loss” to bring down your taxes on your other income.

Unlike traditional jobs, blogging income doesn't come with tax withholdings. So, you'll need to set aside a portion regularly to cover potential tax obligations, avoiding surprises during tax season. Understanding and factoring taxes like Social Security and Medicare into your financial planning is key.

Who is responsible for collecting and paying tax on Internet sales? If you actively sell merchandise in California or are a retailer engaged in business in California, you are responsible for collecting and paying tax on your Internet sales.

Blogging is a popular way to share your thoughts, ideas, and expertise with the world. However, creating and distributing quality content does cost money. Thankfully, the IRS lets you deduct all ordinary and necessary business expenses from your income.

Physical or digital product offerings: Sell things to make money from your blog. As a way of monetizing their blogs, many bloggers establish a presence on an ecommerce platform, create an online store, and start selling products. Your products could be physical or digital.

Travel and lifestyle bloggers must pay for airline flights, rental cars, hotels, Airbnb accommodations, and more. But can you write those off on your taxes? It depends. You can only write off these costs if they're directly related to your business.

How do you file taxes as a content creator? ›

Content creators will typically be considered self-employed, which requires different tax forms for income reporting and tax filing: Form 1099-NEC: Businesses issue 1099s to nonemployees (e.g., content creators) they have paid at least $600, reporting the total nonemployee compensation for that tax year.

If you want to create liability protection between your business and your personal assets, an LLC (Limited Liability Corporation) is your best approach. An LLC is simpler than a C-corp (where the owners are taxed separately from the corporation) and for most Creators should do the trick.

Since you aren't a W-2 employee and no Social Security or Medicare tax is withheld from your paychecks, you'll need to pay the self-employment tax if you earn $400 or more from brand sponsorships. The self-employment tax rate is 15.3% of your self-employment earnings.

The IRS considers writers to be small business owners, so you report earnings on Schedule C. Take deductions from this income on Schedule C for expenses you incurred while writing your book. Tax deductions reduce the amount of income on which you'll owe taxes.

Self-employed individuals generally must pay self-employment (SE) tax as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves.

As a self-employed writer, you need to file both state and federal taxes, as well as 1099 forms. Generally, independent writers have to file a “Schedule C” as part of their regular 1040 income tax form, which is where they report their art income and expenses.

Ad Networks

Joining an ad network is one of the most common ways that bloggers make money. Basically, you just sign up with one — such as Google Adsense or Media.net — and then ads get displayed on your site.

You will be required to obtain an EIN for your blog. For more information on how to do this, visit this post. Your EIN is a one-time request and is good for the life of your business.

If you get paid electronically for a side hustle, small business or selling things online, you may need to pay taxes. Payment apps and online marketplaces might issue a Form 1099-K, informing you and the IRS of how much money you got for selling things or providing a service.