Tax Tips for Bloggers: How & When to Report Blog Income
Trying to make the most of tax tips bloggers when? You are in the right place. Below we break it down in plain English, with practical tips you can actually use.
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Are you a blogger that struggles with the whole tax thing? Ever had questions about blog taxes, reporting your income, what tax entity you might need to file as, etc? This tax professional shares his best tax tips for bloggers.
Written by Ben Watson, CPA Last Updated: April 1, 2025 Reviewed by Ben HuberSome of the links on DollarSprout point to products or services from partners we trust. If you choose to make a purchase through one, we may earn a commission, which supports the ongoing maintenance and improvement of our site at no additional cost to you. Learn more.
Disclaimer: The information contained in this post is for informational purposes only and is not intended to be used as substitute to obtain professional financial or legal advice. Seek professional advice prior to acting on any information you may find and read in this blog.Whether your blog started as a fun way to share your trip to Europe, or you started with the intent to create an additional income stream from home, it’s no secret that you can make a living from blogging.
Few of us are opposed to an additional revenue source. However, it’s key to remember that generating income, in any way, likely bears with it the responsibility to report your earnings to the IRS.
As such, this purpose of this article is to share some blog tax tips and the answers to some common accounting questions that you may find helpful as you navigate throughout your blogging journey.
The 3 Phases of Blogging (Going from Hobby to Full-Time Blogger)
Let’s start by talking about the three most common “phases” of blogging, and what each phase might require when it comes to reporting blog income.
1. Hobby Phase
You and your spouse love taking photos and wanted to share your trip to Disneyland. You have no current plans to blog seriously, but it’s a fun way to share your life with the world.
BUSINESS FORMATION: None.
ACCOUNTING: Minimal needed - keep track of any income you earned from the blog and report it on your personal tax return as “Other Income” by tax day each April.
TAXES: Since this is legitimately a hobby, you don’t need to worry about letting the government know about your Disney adventures unless you actually made a buck off it.
However, if you make money from your blog (advertisements, affiliate kickbacks, etc.) this is considered income and should be reported on your personal tax return as “Other Income” regardless of the amount. It’ll be added to your other sources of income and taxed as ordinary income.
PRO You don’t have to pay self-employment taxes on this since it isn’t considered earned income from employment. CON Because it’s only a hobby, you can’t deduct any expenses against your income or counteract income from other sources. That new computer, hosting fees, etc. might as well have been spent on Mickey Mouse hats for all the IRS cares.2. Side Hustle Phase
You’ve got a knack for writing and found this to be a excellent way to make some extra money. You are actually blogging with the intention of growing your reach and earning more than you spend each year. It’s at this point (where money is finally coming in) that a common question arises. Do bloggers have to pay taxes?
And the answer to that, as you might have guessed, is yes.
Let’s look at what all is required.
BUSINESS FORMATION: Most likely you’ll start as a sole proprietor unless you took the time to form an LLC. It might be worth your time to consult a CPA, attorney, or business expert to determine if/when it’d be beneficial to officially form beyond a Sole Proprietor.
Most side-hustlers don’t find a need to establish beyond a sole proprietorship since this is still a side gig.
ACCOUNTING: Basic knowledge required.
Since you are running a legitimate business, you’re expected to keep accurate and complete records of all income, expenses, and business dealings. You don’t have to pay for accounting software, but it can definitely save a lot of headache if you keep on top of your books every so frequently.
TAXES: As a legitimate business, you have all the rights and responsibilities that come with it. Sole proprietorships (and most single-member LLCs) will file something called a Schedule C with their personal 1040. You will be required to pay self-employment taxes based on your business net income each year in addition to any other income.
Depending on how big your side-hustle income is, you may need to file quarterly estimated taxes throughout the year or face a penalty (one of the ways the government incentivizes you to pay throughout the year instead of in one big lump sum).
PRO You can now deduct legitimate business expenses related to your side-hustle. Hosting fees, advertising, and payments to contractors are all allowable expenses. CON You are required to follow all of the rules of a legitimate business, not just the ones you feel like doing.Related: 8 Affiliate Marketing Strategies to Drive Massive Sales
3. Self-Employment Phase
This is your actual occupation. The income from your blog is what puts food on the table and pays for your mortgage.
BUSINESS FORMATION: While still available to you during the side hustle phase, the choice between forming a sole proprietorship, LLC, partnership, or corporation becomes more key.
Not only based on how you want to be taxed, but also your plans to grow or include other people in the business.
ACCOUNTING: Basic to advanced knowledge required.
The essential requirements aren’t any different than operating as a side-hustle. However, depending on your chosen entity and complexity of business, it’s likely you’ll need some outside help. Hiring a bookkeeper, Virtual CFO, or seeking out business coaching can keep you sane and enjoying the parts of your business you love while outsourcing the parts you don’t.
TAXES: Instead of simply attaching a Schedule C, you may be required to file an entirely different return in addition to your personal return, payroll taxes for yourself and employees, and other regular reports. You may also need to pay additional taxes and fees throughout the year.
PRO The tax advantages of certain business formations can make a major difference in how much money you keep in your pocket. CON Running the business can get extremely complex and require a lot more of your time and energy.Related: 40 Creative Blog Post Ideas for Beginner (and Advanced) Bloggers
Progressing through the phases
Entrepreneurship has a certain glow in our culture. Being your own boss and not working for the “man” is a major selling point for those stuck in the 9-to-5 grind. You might’ve started blogging for fun or as a creative outlet, but now you’re itching to make a serious go of this.
Likewise, businesses change and adapt to the environment around them just as you do. It isn’t uncommon for a hobby to grow into a side hustle and then later into a full-time occupation.
You aren’t locked into one business entity forever, but it is advisable to seek guidance when making big decisions as they can have serious consequences, and not all situations are the same. Having a knowledgeable guide or following a prescribed path can save you incredible amounts of time, money, and stress no matter which phase you find yourself in.
The bottom line: a little research on tax tips bloggers when goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.
Originally published at dollarsprout.com.
Ben Watson, CPA
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