I’ve just completed my first tax return and made my payment that includes the earnings from this site. My personal return is usually quite simple, so this was the first time I’ve had to make a big tax payment to the taxman.
The majority of my payment was from money I’d made from this blog, and it made me wonder if I was alone in actually declaring my blog income and paying taxes?
I imagine that most bloggers don’t pay taxes on their earnings. When my blog was only making a few dollars a month, then I couldn’t see the point of declaring my income. However, once my blog passed a few hundred dollars a month in 2006, I took the decision to start paying taxes, as I didn’t want to run foul of the taxman further down the line.
I’m glad that I did decide to, as I think trying to hide $10-15k per month from the taxman would be quite hard. I really don’t fancy going to jail like Wesley Snipes for tax evasion! I have managed to reduce my tax bill a bit by paying for my ‘tools’ (PCs, consoles, DVDs, Music, Plasma’s, ISP, Mobile etc) through the business. I’m also glad I did as having accounts for my blog (all the money goes through a company) has really helped me organise things like mortgages.
So, do you pay taxes on your blog income?
