What can be better than turning your passions into a business and having a stable income? However, having a different type of income can come with challenges. In Ohio, there are strict tax laws that are not just about filing the right forms. You must follow the rules for different kinds of income, like from sponsorships, affiliate links, or merchandise.

Since income is never stable for travel bloggers and influencers, it is important to prepare in advance for tax season. It is also easy for non-professionals to overlook tax deductions and credits. There are many expenses that can be written off, like travel, equipment, and home offices. By understanding these, you may be able to save hundreds of dollars. 

A tax accountant in Columbus, OH, especially someone who is equipped with the knowledge and experience of handling state tax laws, can simplify things. They can help identify the areas where you can potentially save money, file your forms at the right time, and minimize the chances of an error. This way, all you need to do is focus on your blogging. 

Determining taxable income 

Travel bloggers and influencers make money from several sources and sponsorships are a big one. Brands pay them to talk about products or services on blogs or social media. This money is taxable and must be reported. Affiliate marketing is another income source. Influencers get paid when people buy products using their links. 

Ad revenue is common too. Bloggers earn money from ads on their websites or YouTube videos. Other ways influencers make money include selling e-books or online courses. 

It is important to understand what the IRS considers taxable income. Any money or items that you receive in exchange for work are taxable. This includes sponsorship payments, affiliate commissions, or free products given for reviews. You even need to report gifts like free trips or hotel stays.

Deductible expenses 

Travel expenses are one of the biggest deductions for bloggers. You can deduct costs like flights, hotels, and transportation during work trips. However, the IRS says that these must be “ordinary and necessary” for business. For example, a flight to a travel conference or a hotel stay for a brand event can be considered necessary. 

Travel bloggers also need good tools for content creation. Cameras, laptops, editing software, or other gear are often a necessary part of their job. These costs are deductible because they are needed for work. Internet and phone bills can also be deducted. 

Travel bloggers also use the internet to post content and connect with followers. A part of these bills can be claimed based on how much they are used for work. Money spent on ads, website maintenance, or promotional campaigns can be deducted. 

Self-employment taxes

Self-employment tax is for Social Security and Medicare. People who work for themselves, like travel bloggers, pay this tax. Regular workers have employers who pay half, but self-employed people pay the full 15.3%. This is 12.4% for Social Security and 2.9% for Medicare.

Taxes are not taken out of the money self-employed people earn. So, you have to do it yourselves. Travel bloggers and influencers usually fall under the “self-employed” category. Self-employed people are required to make quarterly payments, that is, four tax payments a year. This allows you to pay taxes little by little throughout the year instead of all at once. 

Self-employment taxes are based on net earnings. First, determine how much money you have earned, then subtract business expenses. If your net earnings are over $400, you must pay taxes. To calculate the tax, you have to multiply net earnings by 15.3%. For example, if earnings are $50,000, the self-employment tax is $7,650.

Dealing with taxes as a travel blogger in Columbus?

Managing taxes can be overwhelming. Consult with a tax accountant today!