I finished our taxes over the weekend, using TurboTax and getting 25% off by clicking through from my bank’s web site first.
It was a fairly straightforward process, as usual. We had income from my husband’s job, interest income from savings accounts, and my blogging/freelance income (that’s the tricky part).
I keep good records in a spreadsheet for all my earnings so I can easily track income and have an idea of what we’ll owe for our taxes.
For my business deductions, I took a portion of our internet bill, my tax prep software from that year, and PayPal fees. This was the first year I thought to do PayPal fees and it’s like — duh! It’s an expense. It’s money that was never mine. I wish I thought to deduct it in previous years. I know I could go back and fix it somehow, but it sounds like too much of a headache and I don’t think it would be enough money to be worth my time.
Since I bought my web hosting as a two-year package, I’ll be able to deduct that expense next time.
I adjusted our tax withholdings with Shane’s employer earlier in the year to account for Vivienne’s birth, and also to take out enough taxes to probably cover my blog earnings. I kinda take a shot in the dark with it, but somehow it works out. Other freelancers might be better off paying estimated taxes on their earnings separate from their spouse’s. I dunno. I’m no tax expert.
We got a small refund from federal and we owed a little to Pennsylvania. After tax prep fees, we’re netting something like $200. I prefer to keep it around this or less, rather than getting a $1k or bigger refund. It’s our money anyway, and I’d rather it be in OUR accounts for the year instead of in the government’s pocket.
Here’s some links across the web that I found helpful:
- 7 things that every blogger should know about tax @probloger
- Taxes for bloggers @financefreelancelife
- 101 tax deductions for bloggers and freelancers @wisebread
- Blogger tax deductions you should be looking for come tax time @FreeFromBroke
Have you done your taxes yet? Fun stories to share?