We don't want the IRS mad at us.
January 4, 2006 8:48 PM Subscribe
We have a couple of blogs and use a combination of Google Ads, AdBrite and Amazon Associates placements on them. We're trying to figure out how best to approach the income from these ads on our tax filings...
posted by anonymous to work & money (20 answers total)
We never thought we'd be making as much as we are making (which still isn't much...not enough to live on), so we hadn't really thought through the tax implications in advance. We were blogging for fun and then...well, income.
Since our Google Ads income exceeded 4 figures this year, we think that we probably have to cover our bases on our upcoming tax return. (More than $7500, less than $10k). Our other income sources posted more modest returns (Amazon, $500+; AdBrite: $500+). To facilitate our blogging, we purchased domain names, paid for hosting services, attended a conference, bought a digital camera, etc. Are these officially expenses?
Also, we'll probably get paperwork from Google for filing with our tax return, but can't imagine that Amazon or AdBrite are going to send us something for those amounts...are we wrong?
I'm a temp and my spouse works full-time so we really don't have experience with this little "side business" situation. Any suggestions for where to research this? Any other folks out there dealing with a similar situation? We are not incorporated or anything "official" like that. Just two regular folks with a laptop who are passionate about the subject we write about.
We talked about hiring a CPA but we've been told that may cost us close to $200-300. Since we're already going to owe the IRS this year, we'd rather try to do this ourselves with Quicken/Turbo Tax. We just don't know how to categorize this unexpected income. Thoughts?