I am just a small fish in a huge ocean in the blogging arena. My little blog that could started in October and has blossomed and grown in ways I would never have imagined. In doing so, I have made a little money in terms of The Cubicle Chick by monetizing my site; selling advertising and also becoming associated with various affiliate programs available. Not enough of course to say I make a living while blogging full-time, but it does supplement my income.
Because I have been affiliated with the rules of blogging for years, I’ve known that any money made while blogging has to be reported on your income tax, but was shocked that other bloggers still do not know this.
Blogging is a business.
Every advertising or affiliate company I have used required that I complete a W-9 for income tax purposes. A W-9 is required to report income earned by freelancing and contracting work. It also is used to report earnings received by financial institutions (per WiseGeek).
I have heard various amounts that must be reported minimally to the Internal Revenue service in terms of income. I have heard some say that anything made over $500.00 must be reported. Others say $100.00. But, the consensus amongst most tax professionals and popular bloggers is that ANY income, whether it is $1.00 or $500,000 must be reported to the IRS. If not, it could cause your return to be rejected, or you could be audited.
According to ProBlogger:
Income is reportable to the IRS no matter what form you receive and what amount you are paid. Forms W-2 are only issued to employees of a company and most bloggers are freelancers, not employees. It’s more likely that you’ll receive a form 1099 but only if your annual income exceeds $600. However, no matter whether you receive a form or not, you must report payments made you as income – even if it’s only pennies for the year.
Companies are required to send you a W-9 if they have paid you any money for advertising, etc. and just like W-2’s, they usually arrive before the end of January so you can properly file your tax return. If you are a blogger and you have received a W-9 in the mail, make sure it is reported as income. The IRS is no joke!
For more information regarding blogging and taxes, please refer to ProBlogger’s, 7 Things That Every Blogger Should Know About Tax. If you have additional questions, please seek the advice of a professional tax preparer or accountant.
Happy Blogging!
This is very useful information. I have only recently started blogging and have not monetized by yet. What affliliate programs do you reccomend?
Linkshare is a great one! It allows you to choose from prospective companies, leading brands. The company then checks out your website and approves you if it fits their qualifications. Check them out at
Very nice post!
This was very informative. Even though I'm not in this situation yet it's good to know.
You’re providing great & valuable info for all bloggers. Thank you as I’ve come away with more ways of making money for my blog & hopefully retire earlier!
Clara.
BTW- If you’re up for guest post, hit me up…My readers would luv it:)