If you write a blog for someone else and get paid for your work, then you need to claim that income on your tax return. Most freelance bloggers are not considered full-time employees. That means you may or may not have completed a W-9 when you started working for a client and you may or may not get a Form 1099 at tax time from that client.
But what are those forms and what should you do as a freelance blogger to make sure you have all the paperwork you need and take the right steps to file your tax return properly? Read on for help, and consult your tax professional to be certain you're following all the rules.
What's a W-9?
Some of the employers who pay you to write blog posts, particularly larger companies, will require that you fill out a Form W-9 when you begin the job. This form identifies your work to the IRS as being done as an independent contractor, and the employer is not required to deduct taxes from your pay. The IRS still wants that money though, so you're responsible for paying those taxes. Don't get stuck with a huge tax bill at tax time each year. Instead, check out these tax tips for freelance bloggers to make sure you're ready.
What's a 1099?
Those clients that require you to complete a Form W-9 when you begin freelancing for them may or may not provide you with a Form 1099 at tax time. This form documents the amount you were paid throughout the tax year, so you can include the amount in your tax return and pay the corresponding taxes through your annual tax bill (or quarterly tax bill if you pay quarterly estimated taxes). Keep in mind, not all employers that have you submit a W-9 are required to provide you with a Form 1099 at tax time. The onous is always on you to declare all of your income on your tax return and pay taxes on that income.
What Records Do I Need?
In addition to the 1099s you might receive when the tax season begins, you need to keep records throughout the year. Keep all documents related to the money you made throughout the year as well as all expenses you incurred that you can deduct on your tax return. Learn more about tax deductions for bloggers.
Should I Consult a Tax Professional?
The best answer to this question is - yes, particularly the first year you work as a freelance blogger. Not only can a tax professional help you classify your blogging business, but he or she can help you understand your individual tax situation and plan for future tax returns so you file your returns accurately while positioning yourself to receive the maximum refund or pay the lowest tax bill possible.
