I am glad to say that I have finally finished and filed my taxes for 2007. I have been self-employed for just over 4 years now and the one thing I dislike the most about being self-employed is doing taxes. It always feels like I have just been kicked in the crotch and I am suppose to smile while it happens. Having said that, I do have to admit that being self-employed I do like the fact that I can use several of the expenses for my business and deduct them to lower my income. At least I don’t feel like I have been kicked in the crotch twice. I want to remind you here, I am not an accountant so if you act on any information I give you in this post, you are on your own.
If you are a blogger you already are self-employed, even if you are still working for someone else for the majority of your time. Being self employed means you are able to use some of the expenses for your blogging as business or professional expenses.
- Web Hosting – Even shared hosting plans cost some money. Make sure you include that expense. You can’t blog with out it.
- Internet Connection – You can’t connect and manage your blog if you don’t have an Internet connection.
- Computer Hardware/Software – You need a computer to continue to work and post to your blog.
- Power/Gas/Water – If you are working from home it costs money to heat, light and maintain your residence. A portion of that might be deductible. Here in Canada you have to state how much space you use for your business activities and you can claim a portion of the expenses.
- Mortgage – Again if you are working from your home and you have a mortgage you might be able to deduct some of the interest that you paid.
- Insurance – A portion of your insurance can often be deducted if you are working from home. Did you keep that receipt?
As I mentioned I am not an accountant. A professional accountant could, hopefully, help you find more deductions than the ones I mentioned. The items I mentioned are all items that I know I am able to use in my latest tax return, and while my business is more than just blogging, many of the expenses for being self-employed doing web development and blogging are not very different.
If you are making money from your blog, don’t forget you need to let them know that as well. Income from your online ventures is taxable and the government will want their fair share.
One of these days I plan on getting a professional to do my taxes, and maybe it won’t feel like it hurts as much. Although I think it will still feel like it does in one of my favourite parodies by Rick Mercer.
What are your favourite blogging related expenses to deduct?