These days, people actually make money working as a blogger, but come time tax season, they may struggle to file their tax return in Kissimmee. Since they are not working in a traditional job, this will make things certainly tricky for them when they have to sit down to file their tax return in Kissimmee.
So, does that mean they do not have to pay any taxes then?
No, not exactly, as the government still requires them to pay taxes. The only difference between their job and a conventional job is that the government requires them to pay self-employment taxes. If they had a traditional job like others, self-employment taxes would have been automatically withheld.
Does that mean a blogger does not have any advantages when they file their tax return in Kissimmee?
Bloggers in Kissimmee and elsewhere do have advantages. Here is list of advantages bloggers can take when they file their tax return in Kissimmee:
® Estimates Taxes
Bloggers will have to pay estimated taxes that a regular employee is not required to pay. You will not have any taxes deducted from the income you get from blogging so the IRS requires you to pay estimated taxes each quarter. The dates to note are—April 15, September 15, June 15, and January 15.
Not paying estimated taxes can result in a tax penalty. You can avoid paying this tax if you do not expect to earn $1,000 or more from your blogging.
® Self-Employment Tax
You need to put money aside to pay self-employment tax, as the IRS views bloggers as running their own business. Even if you work part-time as a blogger, you will still owe self-employment tax to the IRS. You will have to pay both the employer and employee parts of the tax.
What Can Bloggers Deduct When They File Their Tax Return in Kissimmee?
Since you run your own business, you will be able to deduct expenses you deem responsible for operating your business. For instance, you need a computer, office furniture, and other supplies to blog on the internet. Without these things, you will be unable to run your blogging business successfully. When you file your tax return in Kissimmee, you can deduct these expenses from your taxes.
You can also deduct rent and utility expenses if your office is based in your home. In order to claim tax deductions on your blogging business, you need to proof to the IRS that you are earning a profit from it.
Otherwise, they will categorize your business as a hobby and you will be unable to claim any tax deductions when filing your tax return in Kissimmee. If your blogging business is your main source of income, provide the IRS with evidence that states that it is.
To make things easier on yourself, you can consult with an accountant to guide you to make the right tax deductions. They can help you file your tax return in Kissimmee.
If you need help with any tax accounting issue, please call us at 407-502-2400, or email [email protected]