Determining Tax Deductions For Bloggers

If you make any income from blogging it's time to start thinking about taxes. I know we don't have to pay them for a few more months, but I always like to have everything in order by December. Since hubby and I both have self employment income, I always start getting things together around the beginning of October. Most of the 1099's we receive come in during the first few weeks of January, so by that time I'll have everything ready to go.

With self employment it's always important to itemize. It makes a huge difference for us. Last year we would have payed in over $15,000 in we hadn't itemized, but because we did we only had to pay in a few hundred instead. There's a great post over at ProBlogger today called 46 Tax Deductions That Bloggers Often Overlook. I suggest printing out this list, and keeping it with your tax information to give you an idea of some of the things you can deduct. It's a pretty nice list, but remember there are other things not mentioned on the list such as the home office credit so always talk to your tax preparer to see what else may qualify.

Also, we pay our taxes quarterly. This helps because it's a guesstimated amount of your yearly income divided into 4 payments. It basically makes the hit from tax time not so hard because you're coming up with 4 small payments through the year versus dropping a large sum to the IRS come April. Come tax time, if you've over payed with your quarterly payments you'll get a refund on that cash and anything else you may be owed. I don't know if I would be paying quarterly if we didn't have 2 self employment incomes in our household, but it really does help us a lot.

What do you guys think about quarterly payments? Are there any bloggers out there who are doing this?