While I have a wide range of earnings from
Posted: Tue Dec 24, 2024 7:11 am
While I have a wide range of earnings from different affiliates, they’re all relevant when it’s time to file my taxes.
Plus, every incremental source of income adds up over the course of a year—and by tracking which affiliate programs are growing (or paying out higher rates), it can tell me which types of blog post ideas I should prioritize writing about and the kinds of blog headlines that’ll likely convert best over the coming months (in order to promote higher-paying affiliate products).
Here are some of my blog’s expenses broken down, too:
Expenses Breakdown (Example of How to Do Blog Taxes) Screenshot
It’s important to keep a detailed record of expenses because:
You want to know if your blog business is profitable. Account for every expense and source of income (to track your progress and make changes if things are trending downward).
You also want to accurately account for your expenses (so that you can maximize your deductions on your tax return).
Next, we’re going to discuss how tax deductions work in regard to taxes armenia phone number library bloggers.
5. Use Tax Deductions to Your Advantage as a Blogger
Stock Photo of Working on Taxes During Tax Season
In the context of your blog business, a tax deduction or “write-off” is a business expense that you count against (deduct from) your taxable income.
Keeping track of your expenses is a fundamental part of running a business. Each business expense has the potential to be deducted from your taxes.
"Keeping track of your business expenses is crucial, because each expense is a possible tax deduction (and can save you money on your tax return)."" ...
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Let’s say you made $100,000 in profit. If you had zero expenses, you would pay taxes on the full $100,000 that you made that year.
But it’s rare that any business has no upkeep costs. Almost every small (or large) business costs something to keep running.
Instead, let’s say that you made $100,000 in income, but your blog cost a total of $40,000 (in expenses) to run. Assuming all of those $40,000 in expenses are classified by the IRS as deductible, it means you can “write down” your taxable income to $60,000… reducing the amount of taxes you’ll pay at the end of the year.
To be fair, this is an over-simplified explanation and there are factors that can make this process more complicated. In theory, though, each business expense can potentially lower your taxable income.
Plus, every incremental source of income adds up over the course of a year—and by tracking which affiliate programs are growing (or paying out higher rates), it can tell me which types of blog post ideas I should prioritize writing about and the kinds of blog headlines that’ll likely convert best over the coming months (in order to promote higher-paying affiliate products).
Here are some of my blog’s expenses broken down, too:
Expenses Breakdown (Example of How to Do Blog Taxes) Screenshot
It’s important to keep a detailed record of expenses because:
You want to know if your blog business is profitable. Account for every expense and source of income (to track your progress and make changes if things are trending downward).
You also want to accurately account for your expenses (so that you can maximize your deductions on your tax return).
Next, we’re going to discuss how tax deductions work in regard to taxes armenia phone number library bloggers.
5. Use Tax Deductions to Your Advantage as a Blogger
Stock Photo of Working on Taxes During Tax Season
In the context of your blog business, a tax deduction or “write-off” is a business expense that you count against (deduct from) your taxable income.
Keeping track of your expenses is a fundamental part of running a business. Each business expense has the potential to be deducted from your taxes.
"Keeping track of your business expenses is crucial, because each expense is a possible tax deduction (and can save you money on your tax return)."" ...
Click To Post on
Let’s say you made $100,000 in profit. If you had zero expenses, you would pay taxes on the full $100,000 that you made that year.
But it’s rare that any business has no upkeep costs. Almost every small (or large) business costs something to keep running.
Instead, let’s say that you made $100,000 in income, but your blog cost a total of $40,000 (in expenses) to run. Assuming all of those $40,000 in expenses are classified by the IRS as deductible, it means you can “write down” your taxable income to $60,000… reducing the amount of taxes you’ll pay at the end of the year.
To be fair, this is an over-simplified explanation and there are factors that can make this process more complicated. In theory, though, each business expense can potentially lower your taxable income.