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Blogging and Income Tax

The great thing about the Internet is that it eliminates the problems that geographical boundaries pose, making it possible for a writer to land professional blogging jobs for online publications and all kinds of clients anywhere in the world. But just like any job, professional blogging comes with its own set of challenges, and for those who are not financially savvy that includes figuring out what to do come tax declaration time.

Income tax monopoly

If you earn money through blogging, whether that be compensation income for professional blogging services or income generated by your own blog, you need to declare that income and pay corresponding taxes.

How much you need to pay, whether you can file for tax relief, and where you need to pay can get confusing though, especially if you are working for businesses and private individuals located in another country. With each country having its own set of tax laws, which law do you follow? You have to figure out which one applies in your particular circumstance.

For US citizens, it is a no brainer that they need to file tax returns every years since the law requires them to do so wherever in the world they may be living at the moment. It then obviously follows that income earned anywhere in the world, including through the Internet, needs to be declared.

The US law is unique in that though, since most other nations (e.g. UK) only require residents to pay income tax. However, in many circumstances, citizens residing outside the country but still earning income within the country (e.g. clients are based in the country) also need to pay income tax.

To make sure you don't end up paying more than you need to in income tax though, check your country's tax laws specifically on the issue of double taxation treaties as well as deductions. You don't need to be a financial expert writing on business and personal finance to do this, but if it is a bit too much for you to handle then it would be best to consult an accountant.

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