I’m a Blogger. Does the IRS Consider my Blog a Business or a Hobby? - Vyde (2024)

FAQs

Is blogging a hobby or business? ›

It can be profitable even as a hobby

Hobby blogging profits depend on your effort to monetize your work. If your website attracts visitors, you can convert that traffic into revenue. Here are some options to monetize your blog: Display ads using Google AdSense.

8. Can a Personal Blog be a Business? Yes, a personal blog can indeed be considered a business for IRS purposes. This applies even if the blog still needs to turn a profit.

The key consideration for the IRS is that businesses operate to make a profit while hobbies are for pleasure or recreation. If you are only getting a small amount of income occasionally throughout the year from an activity, but aren't making a profit, you likely have a hobby.

A blog is classified as a digital publishing business . That's because a blog operates mainly by publishing content on the internet, including articles, photos, and videos. Most blogs start off as a sole-proprietorship business at first.

However, most bloggers do not need to get a federal license to run their blogs. You'll need a business license if you rent, lease, or sell goods through your blog or if you provide a taxable service on your blog.

Blogs are a robust and dynamic platform that can become successful and profitable. A personal blog must be transformed into a business blog to be capable enough to generate revenue. To do that, you require strategic planning and the right monetizing methodologies.

Starting a blog doesn't require forming an LLC unless you want legal protection for your personal assets or plan to run it as a business with significant income or potential liability.

Website hosting, domain names, promotional swag, digital ads, and listing fees are some of the business marketing expenses that you can write off.

Physical or digital product offerings: Sell things to make money from your blog. As a way of monetizing their blogs, many bloggers establish a presence on an ecommerce platform, create an online store, and start selling products. Your products could be physical or digital.

If you earn more than $400 in a calendar year from your hobby, you should file a return and report it as self-employed income on your taxes. According to the IRS rules, you must file Schedule SE and pay self-employment tax if your net earnings from your activity are $400 or more in a single calendar year.

What is the IRS hobby Loss Rule? ›

According to the IRS, it applies the hobby loss rule to disallow losses of activities it finds likely not to be engaged in for profit. Profit must be demonstrated for three out of five consecutive tax years. Some activities, such as horse racing, have slightly different requirements.

The term trade or business generally includes any activity carried on for the production of income from selling goods or performing services. It is not limited to integrated aggregates of assets, activities, and goodwill that comprise businesses for purposes of certain other provisions of the Internal Revenue Code.

Yes! Starting a blog is one of the easiest, most accessible ways to launch your own business and earn an income online (from anywhere in the world).

The quick answer is yes.

Blogging is a viable and profitable business for many individuals and businesses. However, the success of a blog as a business depends on various factors, including niche selection, content quality, adaptation to trends and monetization strategies.

Yes, Blogging is a successful career path. BUT! If and only if you are passionate about writing and content creation. Blogging can be a very lucrative business and can make you leave your conventional job.

In that sense, blogging can be seen as a form of social networking service. Indeed, bloggers not only produce content to post on their blogs but also often build social relations with their readers and other bloggers.

Most bloggers are considered independent contractors, managing their own blogs and content. If you are an independent self-employed blogger, your income will typically come from advertising, affiliate marketing, selling products and/or services, or creating sponsored content.