So, you have decided that blogging is a great online business for you. Now, you wonder what are the expenses that come along this business.
Today, we will be going to talk about the Tax deductions for bloggers: 31 overlooked expenses.
Remember that any business has to declare their financial books or reports especially at the year-end wherein they have to declare income and pay taxes.
Oh yes! you need to pay taxes for all the profit you earn with your online business such as Blogging, E-commerce etc.
The good news is that, unlike working at the local grocery store, there are a lot of potential tax deductions that might be associated with your online business income.
Remember, that if you are blogging for someone else as a contributor or blogging is just your hobby, you will probably not enjoy all the possible tax deductions listed below.
If you are a beginner, you will probably don’t have huge income during your first year, as the first year is more on building up your site and learning the process at the same time. Therefore, it’s very normal that the first year is not profitable, but of course, there are some exceptional people who can manage to earn a significant profit right away.
So, if you are a beginner – your initial investment/expenses will probably be just the domain name, website theme, web hosting, ebooks, and eventual training.
Now, let’s take a look at the short list of bloggers’ expenses for tax deduction ideas. Take note: A lot of these are often overlooked!
There are two kinds of qualified business expenses that can be declared as tax deductions: ordinary and necessary expenses.
Ordinary Expenses – Commonly accepted expenses in your trade or business
Necessary Expenses – Helpful and appropriate in your trade or business
So, how do these terms relate especially to blogging? These are actually the reasonable expenses related to your business or blogging income.
For instance:
New Ipad, New Desktop Computer, New Laptop? – YES
New Video Games – No. Unless you are making a review of that video games on your blog! Nice huh?! (wink!)
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Tax Deductions For Bloggers: 31 Overlooked Expenses
Tax deductions for bloggers: 31 overlooked expenses.
1. Domain Names / Domain Renewal
The first operating expense for a blogger is acquiring and renewing a domain name.
You can buy domains cheaply straight from a company.
I personally use siterubix.com. You can get free subdomain and purchase your own domain name as well. Plus, you’ll get a free 7-days online entrepreneur training.
Domain names are very cheap to renew, and usually cost around $5-15 per year. Prices vary whether you use .com, .net, .org etc.
This is especially important for bloggers are who buy and sell domain names for profit and for bloggers who are doing website flopping for profit.
2. Web Hosting Fees
A professional blog always comes with its own hosting service, so your web hosting fees are the also one of the things you need to look at when calculating your tax deductions.
Bluehost is the cheapest and it’s WordPress.org’s number 1 recommended web hosting. You can get it for only $3.95 per month and it can go down to $2.65/month during their promo period. Some web hosting service can cost up to $499/year. So, make sure you have the best hosting service that fits your budget especially if you are a beginner.
3. Internet Access Fees
Make sure you have your monthly internet access fees as well as the extra expenses like roaming fees included in your tax deductions.
However, if your internet is bundled with your cable or home phone, you’ll have to calculate what portion of your bill goes to the internet.
4. Themes, Plugins, Software
All software that you use for creating or maintaining your blog is tax deductible, even it’s something standard like Photoshop or Microsoft Office.
Make sure you also include WordPress theme and plugins for your site too.
5. Home Office
This one is a huge tax deduction. If you work from home, as bloggers normally do, you can calculate the percentage of space in your home that you use as your home office for your online business. You can claim that the percentage of our mortgage or rental expenses as well as utility expenses.
For instance, if your office is equal to 1 of 5 rooms in your apartment or condo, you can right of 1/5th of the mortgage, rental, and utility expenses.
Plus, if you have clients actually come to your house to meet, even much better. That same fraction applies to expenses that make your home office presentable. For instance, landscaping, home maintenance, and painting can also qualify as a tax deduction.
Take note that some countries, like Denmark, do not allow tax deductions for the mortgage, which means that you own the property. So, make sure to check out this rule with your local tax office.
This is one of the most overlooked tax deduction because it’s so tricky to calculate. If you want to be sure about this one, consult an accountant in your area.
6. Products You Review
Majority of bloggers do the product reviews for their blogs. So, if you review products, make sure you write them off!
Expenses incurred with product reviews are considered as reasonable tax deductions. This can significantly lower your taxes as bloggers can review literally anything such as computer software, mobile phones, transportation, restaurant – absolutely anything you can think of.
For instance, you had to take the train into the city to review a restaurant? You can claim for any travel expenses and claim for the expenses you paid for making a review for a particular restaurant. How cool is that!
Just make sure you keep all of your receipts (at least 5 years) and can prove that you actually blogged about any products that you used as deductions.
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7. Security / Cloud Backup
Security software is a must to your online business. The yearly subscription fee is also tax deductible. If you pay for a WordPress anti-spam plugin like Akismet or the anti-virus program on your computer, then don’t forget to write them off.
Many bloggers are also using cloud backup and pay for an annual fee for it – this is also tax deductible.
Google is currently encouraging blogs to move over to a secure https address, which requires an SSL certificate. Some hosting services are giving SSL certificate free and some don’t. That’s also a tax deduction.
8. Outsourcing
A lot of bloggers are higher freelancers for different tasks for their blogs – such as social media, content writing, logo design or a custom plugin for your site. Paying for these tasks to be done for you are also tax deductible.
Remember to keep a log of all of these purchases, including all invoices you receive for references.
9. Marketing Costs
Marketing costs including any advertising or promotional expenses for your website are tax deductible. This includes GoogleAdWords, social media ads, printing business cards etc.
Marketing costs including advertising of your blog, printing business cards, etc.
10. Blogging Equipment
As a blogger, your computer is your main device, and that means you can claim the tax for what you paid for it. If you upload videos to YouTube, you can also claim for money spent on webcams, memory cards, external drives, microphones, and any other gadgets.
11. Furniture and Other Equipment
Aside from computer, printer or a photocopy machine, you can also write off your furniture such as computer table, office chair
Take note: that you need to apply a depreciation method for all the furniture and equipment that you expect to use for several eýears.
For instance, if you expect to use your laptop for 5 years, then you write off the 1/5th value of your computer as your depreciation expense every year within 5 years of time. Plus, any repair and maintenance pertaining to your computer are also tax deductible.
12. Conferences and travel expenses
Blogging has become so popular as a profession today. And there are regular conferences where bloggers and affiliates get together and share knowledge.
If you attended any blogging conventions, your travel expenses are tax deductible. If you interviewed someone for ou blog over lunch or sent them “thank you gift” – these expenses are also tax deductibles.
They can be pricey, but the good news is that you can claim the tax deductions on your tickets and related expenses.
13. Images And Music
There are a lot of free images and music available online. However, if you are paying for the high-quality ones, your subscription fee is definitely tax deductible. The same applies to any headshots or other marketing photography. Plus, if you use music, for example as a theme intro and outro for a podcast – these are also tax deductibles.
14. Coaching And Training Programs
If you use a business coach or mentor, your payments are also tax deductible. Same applies if you use a training program.
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15. Professional Fees
Lawyers’ and accountants’ fees are also tax deductible. So, you if use any of their services pertaining to your blog, don’t forget to write them off. Yes, a lot of bloggers use these services especially when their businesses become more complicated when it comes to taxation. And some bloggers need professional services from a lawyer to protect and defend their business.
16. Subscriptions
Do you have any other subscriptions like magazines, podcasts, and memberships to professional associations? So, don’t forget to write them off as these are expenses that help you to develop your blogging skills and these are tax deductible.
17. Insurance: Health or Home
If you are a full-time blogger and freelancer, then you probably ay your own health insurance. The IRS should allow you to deduct all your medical expenses over 10% of your adjusted gross income. This applies in the US. So, make sure to check the taxation rules in your country for this.
A portion of your homeowners or renters insurance can also be deducted if you are claiming a home office. Remember, if you get your health insurance through your employer, you can’t deduct it as a business expense for your blog.
18. E-Books
E-book purchases which are related to blogging are one of the most overlooked tax deductions because many bloggers think of e-books as entertainment rather than work.
19. Promotional Items
Did you make any promotional items, such as stickers, t-shirts, pens or keychains? Yes, these also are tax deductibles.
20. Business cards
Yes, don’t forget to carry business cards with you at all times for networking! Surprisingly, many bloggers create also business when they are socializing with other people. So, blogging is also an offline business marketing, right?
21. Giveaways Or Competition Prizes
Any giveaways or prizes are eligible for tax deductions as promotional tools, whether it’s a flight ticket, a brand new car or a t-shirt.
22. Postage
You will probably use ordinary postage services for sending prizes to your lucky winner or sending greeting cards to your suppliers. Thankfully, this is also tax deductible!
23. SEO Services
Many online business owners including bloggers are hiring professional SEO services. If you pay a company to help with your site’s SEO or pay to guest post on another blog or website, then, don’t forget to claim your tax back.
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24. Office Supplies
I hope this is not new for you. All your office supplies and stationeries that you need to use from time to time are tax deductible too! Even the little things like post-it notes, bond paper, notebooks, printer ink, and pens are counted so remember to file your receipt up.
Most bloggers and other online entrepreneurs love to work from home. However, there are people who prefer a very silent and work environment.
While some people go to the public libraries, some people go to “Co-working”, or renting a desk in a shared workspace. This is becoming more popular nowadays. It’s a great way to meet new people and network. Remember, these daily or monthly fees are tax deductible too.
26. Trademarks and Incorporations
Did you pay someone else to set up your business as an LLC or incorporation? That’s a tax deduction!
What about trademarks? Yes, some bloggers have trademarks registered for their blogging business. So, if you are considering it, this can cost around $300 to get one setup, but don’t worry, you can claim your tax back on it.
27. Transportation
As a blogger, you will definitely spend a lot of time working from home, or at an office or co-working space. However, there will be times when you need to travel in order to get some work done.
If you travel for work purposes, any expenses such as tickets, fares, Uber rides, taxi rides, and gas are tax deductible. You
As a blogger, you might spend a lot of time at home, or at an office or co-working space. Still, there will be times when you need to travel in order to get some work done.
If you’re traveling for work purposes, tickets, fares, Uber rides, and gas are tax deductible. Some countries are even granting tax deductions for using a bike to work.
Do you blog for travel niche? Then you will definitely love this one. You can actually claim tax deductions for your entire trips, accommodations and everything that has something to do with your blogging business. How cool is that?
28. Restaurants/Food
Traveling for your blogging business? Then you can claim tax back for your dining costs while you travel. And if you are away on business trips, anything you spend on food during the trip is tax deductible.
29. Smartphones, Landlines, And Usage
Smartphones are one of the devices that you can declare – the smartphone itself can get a depreciation expense- let say 2 years. Plus, you can get a portion back for your monthly phone plan.
Plus, both mobile and landline usage can be claimed too – well, a part of it. Track your calls over a period of time and calculate the percentage of your calls are business-related, and then use that percentage to calculate the allowable expense.
Tip: Some bloggers use a separate smartphone and landline for their business. This will make it a lot easier when declaring taxes.
30. Retirement Plans
As a full-time blogger – a sole proprietor or LLC, you can lower your tax bills further by contributing to a retirement plan.
31. Tax and Accounting Preparation
Another most overlooked tax deduction! If you get help to prepare or calculate your taxes, you can add the cost of that in there too. Aside from an accountant, you can actually buy tax software or program to calculate your taxes.
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Final Thoughts…
At the end of each taxation year, make sure that you keep all your documents on file for at least 6 years. This includes all your financial statements, receipts, and invoices.
It’s easier if you file them in a different folder or envelop each month. Track everything in a spreadsheet, or book. You may also want to scan or take pictures of your receipts and invoices because electronic formats are now acceptable and they will serve as a backup in case you lose anything.
And remember, the more necessary and ordinary expenses you manage to keep track of, the lower your taxable profits, and the less tax!
I hope this list of Tax deductions for bloggers: 31 overlooked expenses will help you to maximize your tax deductions and enjoy a higher net income.
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I’m looking forward to seeing you and guiding you in this awesome community. See you on the other side.
If you have any thought or more suggestions, please don’t hesitate to leave a comment below. Good luck with your journey to financial freedom online. God bless!
Hey Che,
I’ve really enjoyed reading this article as its informative and helpful. As a full-time blogger, I’m paying a lot of taxes and I want to avoid that at any cost. I’m planning to shift to a much cheaper WordPress hosting provider like Blue Host. I have one question about BlueHost though. Do they offer any money back guarantee in case if I’m not happy with the platform?
Thanks in advance for answering my question and for this detailed post. Well Done Che!
Hello there,
I’m glad you enjoyed the post and you see it a very helpful one for your business.
Regarding your question about Bluehost, Yes, they do have 30-days money back guarantee. However, you need to see this rule if you have a free domain name.
“If you cancel within 30 days and your plan includes a free domain, Bluehost will deduct a non-refundable domain fee of 15.99 from your refund. This not only covers our costs but ensures that you won’t lose your domain name. You may transfer it to another registrar or simply point it elsewhere at your convenience. Please note newly registered domains cannot be transferred to another registrar during the first 60 days of the registration period. You retain ownership of your domain until the end of its registration period unless you renew it.” – Bluehost.com
I hope it helped.
Best regards,
Che
Hello! Very helpful article, I learned much from it and I`m sure also other bloggers will. I`m surprised that there are so many tax deductions, for some of them on your list I really didn`t know. But of course, it makes sense that for our blog business we need to pay taxes. I like your article and will probably read it once again, keep up the good work!
Hi Luke,
It’s great to know you learned a lot from this article. It’s true that paying taxes is common for any business and people tend to overlooked a lot of tax deductibles and pay taxes more than they should. And sometimes it’s too late to find it out.
I’m glad it helped and I also hope that there will be other bloggers that could find this article helpful too.
Best regards,
Che
Thanks for this post, it gives me a bunch of ideas for deductions I didn’t think about. The key, I guess, is to treat blogging like any other business. If you could deduct the expense for a “regular” business, you can probably deduct it as a blogger. Do you recommend using an accountant or do you think the popular tax software out there is OK for beginners?
Hello Will,
You got the point. It is absolutely right. Blogging is treated as any other business when it comes to business taxation.
I recommend to hire an accountant for the more complicated tasks most especially for huge blogs. Some huge blogs have their own different products and services, paid freelancers and contributors, sponsorship, coupons and freebies. They even hold contest. A lot of these hug blogs earns 6-7 figures a month. So, when the tasks become more complicated and comprehensive, you may want to hire an accountant to make sure you will not overlooked anything. Plus,you get to enjoy more time for your business itself.
If you are a beginner – a tax software or just a spreadsheet of this list can serve well for you.
I hope it’ll help.
Best regards,
Che
Hmmm… I am new to this online business world. I had no knowledge that there was even any tax! Your post has definitely been an eyeopener and I am sure it will be for others as well. However, I am grateful that you listed and explained those ways to get tax deductions which could come in very handy when I get more work done. For us oblivious folks, how does an online business qualify and go about declaring income and paying taxes? Where(country) does this apply?
Hello Dylan,
I’m glad this post has made you aware of the taxes and tax deductions for an online business.
All businesses (whether online or onsite) are obliged to declare income and pay taxes. I believe this rule is common in any country especially in the US. However, there are tax free countries (mostly in Middle East), where people do not pay taxes at all. Otherwise you can apply this list of deductibles in any country. Take note of the mortgage is not always tax deductible – so make sure to double check it with your local tax office or taxation guidelines in your country.
I hope it’ll help.
I am actually a newbie in blogging and I have not really put all these into consideration. I would say that maybe the reason I have not really thought about it is because I have not started making any profits yet from my blog. There is definitely a lot to consider that I have not even thought about and I have overlooked a lot. I would definitely refer back to this on a regular basis because they are very important.
Hello Jay,
Congratulation to your blog. It is pretty normal to have a very low profit during the first year of blogging business. So, don’t worry – you are about to learn the process and your website will eventually grow as time goes by. Time goes fast and someday after a year or two – you will say money coming in from your online business. Then you will absolutely need this list to maximize net income after tax.
Good luck to your online business.
Best regards,
Che
Really interesting article! I didn’t know you could include all of those expenses as tax reduction! I have always had trouble understanding taxes and how should I report them (fortunately my hubby does it every year 😜). Even e-books and giveaways can be included, that is great! As a blogger you do spend a lot on proportional items and education products and services.
Thanks for sharing this info!
Hi Jenny,
I’m glad you liked the article. Yes, it’s a very long list for deductibles. That’s great your husband can help you with this. You can eventually show him the list, in case he’s not a blogger though (wink).
You are most welcome.
Best regards,
Che
Hello Che,
First of all, happy holidays
Though I am not from Denmark I found it very interesting on a number of levels. You wear many hats and you describe those attributes very well. As an independent business person I admire the way you market yourself but I had one thought. Do you feel that with so many skills you might use this site for more in depth tax and business info and build another site on “business promotion” I think it might make you look more professional in the tax field and the other site more in depth info on business development. I did notice one thing. You might check In your content on the 31 overlooked expense page. The line “So, if you are a beginner” you might consider putting the word ” be ” after the word “probably”
Good luck
Hello Bruce,
Thank you for dropping by. I believe you can apply the list of deductibles in whichever country – especially in the US – as my reference is, in fact, a US based info. Some may vary in other countries- like I mentioned that here in Denmark you can not claim a tax reduction for a home office if you own the property.
Thank you for the compliments (I’m actually a former accountant) and I appreciate your suggestions on making a separate website for “business promotion”. However, I believe that online businesses are treated just like any other onsite businesses when it comes to taxation. This website promotes financial freedom through online business. So, taxation with online business is necessary for my readers.
Oh, thank you for mentioning my typographical error. I appreciate that. (I’m not a native-English speaker, I’m glad you found only one. hehehe)
Best regards,
Che
I’m glad I came across your post as I’m very interested in knowing all the tax deductions available.That’s interesting in the US that you can claim your own health insurance. This is not available in Australia :-(Overall a great list and thank you for sharing. It certainly beats being an employee where you have so much tax deducted, operating your own online business from home is so much more attractive with all these tax claims!
Hello John,
I’m glad you find this post very useful. It is indeed important that we know our deductible expenses as online entrepreneurs.
With regards the health insurance – I believe you can get a tax offset or rebate if you have a private health insurance in Australia. Take a look at this official link. https://www.ato.gov.au/Individ…
I hope it’ll help and that you can enjoy more of your online income.
Best regards,
Che
Che Dau, Hello! Why such a large cost accounting system? What taxes do scam sites pay? Your theme is designed for people leading an online business. It was interesting to find out exactly what expenses accompany the Internet business.
It turned out that there are so many of them: a list of 31. And you explained each position nicely. You wrote in detail and thoroughly. It can be seen that this was done by an accounting specialist.
I am embarrassed to ask a lot of questions. I started to study at Wealthy Affiliate and save your valuable article.
Thanks, Mark.
Hello Mark,
Yes, that’s true. Cost accounting system can be a little complicated for any business. All online businesses must pay taxes, yes including the scam sites if they can be honest enough lol.
I’m glad this post can serve as a reference for your tax deductions.
Best regards,
Che