If you make a profit out of the blog that you work on then so does the IRS. As a blogger you must be already aware that the income you earn along with any free items that you get as a blogger need to be filed with the IRS. To file taxes stress free as a blogger here is everything that you need to work on.
Remember That You Need To Deal with Estimated Taxes
As a blogger you will have to face something that a fixed income worker does not get: estimated taxes. The ‘pay as you go’ system is one where you have to pay estimated taxes instead of them getting deducted directly from your income. If you don’t take care of paying your estimated taxes in a timely fashion you will be facing a tax penalty. If it is your first time doing taxes, make sure that you refer to a tax service in Kissimmee for expert help.
Your estimated tax does not include self employment taxes. The IRS views you, a blogger, as a business owner. Plus if blogging is just a part time thing, and you have a job where you get a salary, the blogging is still treated as self employment.
However you can deduct for expenses that you incur when you are blogging. Like the furniture that you paid for and other utilities and the rent that you are making use of.
Never make the mistake of describing your ‘blogging’ as a hobby. Once you do that, the IRS will not allow you to claim for deductions. Any good tax service in Kissimmee can tell you that.
If you get audited, saved receipts are what that will help you here. If the IRS finds errors in your tax returns and you do not have proof that you purchased those deductions, then you are bound with penalty fees. Most people forget to print receipts for the things they buy online. Plus the money that you receive as a blogger does not always come in a single paycheck every month. Each month you have money coming from all different sources and if you do not keep track of all that then it would become extremely easy to get a headache in tax season. The simplest and best way is to make a spread sheet to keep track of all your earnings.
When you spend money on your blog throughout the year you can cut a chunk of these expenses that you would have paid the government. Also remember that you should not list your expenses for more than what you are earning. For example you make a $1000 a year from blogging. If you list your computer expenses as $1,500 then the IRS will wait 3 years for you to break even and if you do not, they will start treating blogging as a ‘hobby’; once that happens you will not be able to claim for deductions.
Things You Need To Know If You Are Filing Tax in Kissimmee For The First Time
First thing first: when is the deadline? There is nothing wrong with not knowing when your taxes are due; especially of you are fairly new to the yearly process. April 15 is Tax day, every single year. That is one of the reasons why tax services in Kissimmee, emphasize on getting your taxes in order during the spring season.
Filing Is Not the Same as ‘Paying’
Plus learn the difference between filing and paying you taxes. Just because you were granted an extension from the IRS on filing your taxes late, it does not mean that you can also pay them late too. Like most newbie’s, refrain from making this mistake.
What’s With the Credits and Deductions
The IRS never fails to make tax filing seem more complicated than it is. It is important that you have a grasp on all the tax concepts so that when you take care of paying the right amount to the government you can also take care of saving yourself money. For this you need to make sure that you understand the difference between credits, deductions, refundable credits etc.
Deductions are very important. These are what will lower your taxable income. A credit is meant to lower your total tax liability or it can raise your refund if it happens to fall below zero. A non refundable credit is what allows you to decrease your tax limit as much as possible. However if the figure reaches zero then there is no refund for you there.
Electronic Or Paper
You have two choices. Either you can file your taxes the old fashioned way: pen and paper. Or you can file these online. Both ways have their own pros and cons. You need to weigh each, and use the method that best fits you. For instance if your biggest concern when preparing taxes is the cost then you need to opt for the free filing tax option.
When To Expect A Refund?
If you filed your tax return on paper then you should expect the refund to reach you around the time of two months. Filing electronically will let you receive your refund in approximately three weeks time. Also the IRS launched its app that lets you keep a track on your filing and refund. All you need to do is enter your Social Security number and the right number of your refund.
If you are a dependent on someone else’s return you do not need to file for exemption. And did you know that even if you earn less than the threshold amount, you can get a refund. Just do not forget to file for it.
If you need more information about our Kissimmee, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.