How Bloggers Should Take Advantage of Tax-Deductible Expenses

Posted by Fitz Villafuerte under Guest Posts on July 11, 2012

I’ve been blogging for almost five years now and have always been grateful for the income that I receive here from advertisements and sponsorship.

Indeed, many years ago – blogging used to be just a hobby – a simple online activity for netizens.

But now, blogging has grown to be more than that; and a lot of people today are enjoying its income benefits, as well as various other opportunities that it brings.

In line with that, let me share with you today a guest post from a fellow Filipino blogger, Joel who shares his thoughts below on blogging; and gives some advise on how one should take advantage of tax deductions that comes from one’s blogging expenses.

Let’s now read what he has to say.

One of the many enviable benefits of being rich is paying taxes at lower rates. But whether you’re rich or not so rich, we all pay taxes. Except of course, if you earn just around minimum wage in which case you are exempt.

Just the same, bloggers pay their share of taxes. Some bloggers are full-time with all their income solely coming from their blogging efforts. While other bloggers practice their craft part-time with another job on the side.

Whatever sort of blog you have (you may or may not be earning from it), more likely than not you have expenses related to your blog.

If you’re just starting to blog like I do, I bet you still have your full-time job to compensate for lack of blogging income. You’ve not yet established yourself and your blog for you to be able to monetize it. And so instead of earning you could just be bleeding from hosting fees, domain fee, and other expenses.

Or you could be the big shot blogger that you are now with monthly streams of cash coming to you by way of your blog. You don’t hold another job because you don’t need to. You may have attained financial freedom because of your blogging venture.

Whichever type of blogger you are, two things are certain if you have any income at all (either from blogging and/or from another job):

  1. You have expenses related to your blogging activity
  2. You need to pay your taxes due to your income

You may need to consult expert tax accountants for further details but when you file your tax return, these blogging expenses should be tax-deductible.

It just make sense right? You earn from your blog so you need to declare it and pay corresponding taxes to the government. But before you do you are entitled to deduct the expenses you incurred from the money you received from your blogging activities.

On the other hand, you may still not be earning from your blogs but you are already spending for it to help it grow and bear fruit. In this case, you’ll expect to earn something from your blog in the future. You’ll have to pay taxes on that income once you already have it.

For now you may be getting your income from another job. But since you have expenses to shoulder due to your blogging activities, it’s just fair for you to claim those expenses as tax-deductions.

These tax-deductible expenses due to your blogging activities may be easy to miss. So I created a list for you so that you can account for all the expenses you incurred.

This will hopefully help you get to the right amount of your expenses. This list is not intended to be comprehensive. There may be other expenses that you can think of. You are free to talk to a tax expert if they are tax-deductible too.

Some of the common blogging expenses are:

  1. Online fees
    • Hosting fees
    • Domain name registration
    • Internet access
    • Advertisement

  2. Equipment used
    • Computer/laptop
    • Software
    • Wireless router
    • Camera
  3. Communications
    • Cellphone expenses
    • Fax machine
    • Landline
  4. Office & Supplies
    • Desk
    • Chairs
    • Lights
    • Cabinets
    • Rent
  5. Advertising and promotions
    • Ad placements
    • Paid submission
    • SEO services
    • Promotional giveaways and contests
    • Blog design
    • Business cards
  6. Travel and entertainment related to your blog
  7. Writer fees

Starting and running a blog as a source of income is just as fulfilling for bloggers as some other jobs are for other professions.

It should be treated just the same with regards your tax obligations and tax-deductible expenses.

Remember that so you, as a blogger, will not be at a disadvantage!

This guest post is written by Joel Olave. He is an engineer and blogger based in the Philippines. He is formerly a life insurance agent and writes about personal finance in his blog Pera Ko ‘to – Invest in Your Future

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Photo credit: Images of Money


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4 Responses to “How Bloggers Should Take Advantage of Tax-Deductible Expenses”

  1. Great post! There certainly is a lot of tax dollars you can get back from all that money you spent. Plus, the money you spent is like an investment, meaning that you’ll get more returns in the future.

  2. Christian Evangelista says:

    Hi Fitz! nice article about taxes related to blogging. anyway, during your first ever webinar, I think you’d mentioned that you’ll be guiding your readers on how to start a blog from scratch based on the questions raised from the q & a after the webinar. I am eagerly awaiting for the step-by-step post/s that would discuss how to create, maintain ,and monetize a blog. thank you 🙂

  3. Nick Raquel says:

    This has been running through my mind lately. Is our blogging income really taxable, especially those income received from foreign companies? As I recall, income outside the Philippines are not taxable. That is the same reason why OFWs have no tax. Please correct me if I’m wrong.

  4. Ray says:

    I’m going to monetize my blog soon (as soon as I get accepted, but I keep getting rejected right now).

    Is it better to register as a business (which has so many government costs), or start as a self-employed professional when paying taxes for the blog?

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