How do bloggers pay taxes?

Keep in mind that as a blogger, you're likely to face estimated taxes, something most traditional employees don't have to worry about. The US tax system operates on a pay-as-you-go basis. Since you don't have taxes deducted from your blogging income, you must pay estimated taxes to the IRS every quarter. Every blogger and influencer who earns from their work is required by the IRS to pay taxes.

Self-employment tax (SE tax) must be paid and taxes must also be filed for business transactions with companies outside the state of residence. However, if you don't prepay enough taxes through quarterly reports, you will be subject to late fees and penalties. As you calculate your blog's earnings each month, set aside 30-40% of that income (in your business savings account) for tax purposes, most of which you'll pay in the form of quarterly estimated taxes throughout the fiscal year. Currently, there is a fixed tax rate of 21% for C Corps, but they are subject to double taxation, which as a solo blogger would translate into less income for you under this business entity.

You can hire freelance writers, pay for guest posts, or hire a search engine specialist to help increase traffic to your blog. Because I use QuickBooks Self-Employed to manage the financial side of things with my blogging business, they automatically calculate my estimated quarterly tax payments for me based on my income and how I categorize each expense. Last but not least, a variety of fees and miscellaneous items can be deducted on a tax return for bloggers. You don't have to pay for accounting software, but it can definitely save you a lot of headaches if you stay on top of your books from time to time.

As a blogger, you typically won't need a sales tax license, employer identification number (EIN), or other licenses and forms. Under this income section under the Income Tax Act, the taxpayer must pay income taxes in the profit and loss account after taking into account total income and expenses and remitting taxes on net income. Even if you do something as simple as using PayPal as your business account and your bank checking account as your personal one, it's a good start. A PayPal business account allows you to trade under one business name and gives access to multiple members (if you're starting a blog with other people).

I guess I have to network with some bloggers in my country to get useful information, because accountants are totally blind when it comes to online business. This means that even if you pay for expensive software, but don't actually monitor what you put into it, you'll still have a mess on the other end. Keeping these transactions separate will save you time at the end of the year and will likely save you money if you pay someone else to file your taxes. When you pay fees for business memberships, or pay to attend a conference, each of these and similar items can be deducted in part or in full on your business tax return.

Angelina Linnert
Angelina Linnert

Subtly charming coffee maven. General tv practitioner. Hipster-friendly web junkie. Devoted tv advocate. Passionate travelaholic. Extreme internetaholic.