Monday 13 June 2016

Bloggers, #Blogging, and Canadian #Taxes: #WorthTheRead #BloggerIssues

There are many challenges and learning curves when it comes to blogging. One such area is understanding the tax implications your blog and blogging may have.

I love reading interesting and informative posts and articles about business, social media, marketing and blogging. My Worth the Read posts are my way of sharing my take on a given topic, and at the same time linking a few related posts or articles I think are worth taking the time to read and ponder.

This week's topic is Blogs, Bloggers, Blogging and Canadian Taxes.

Free isn't really free, or so says the tax man
Yes I know tax season just ended but I realized while doing my taxes there are many things to I need to learn. After almost 3 years into my blogging adventure I still feel like a newbie when it comes to so many aspects of blogging, including the related taxes. I don't generate much income from my blog, but what I do make has the potential to impact not only my taxes, but also my spouse's taxes. So no time like the present to start to understand what I can and cannot claim as an expenses, what it considered taxable income, the tax implications of accepting sponsored posts or product for review, etcetera, etcetera, etcetera. I'm guessing there are many atceteras involved.  

My journey for tax knowledge and enlightenment...
Where does a blogger start on their journey for knowledge and enlightenment? With other bloggers of course, especially bloggers with a background in Canadian finance and accounting. Turns out what I thought would be an hour or so of leisurely tax reading, turned into an entire day of reading, note taking, bookmarking and clinking through to related posts. Although I'm hardly an expert, I definitely feel I have a better handle on blogging, income, expenses, deductions, taxes and filing a Canadian tax return with blog income. 

8 things I have learned about blogging and taxes from the posts I've linked below:

  • READ THE POSTS BELOW! Well finish reading my post first, but then go directly to the posts. Do Not Pass Go and Do Not Collect $200. And if you do, claim it as income!
  • Get yourself a system ... Now! Don't wait and try to backtrack a year's worth of invoices and receipts at tax time. It doesn't need to be complicated, but it needs to be complete and consistent. Track, document, copy and organize everything as you go. 
  • Read the posts below so you understand what is considered income AND report it all.
  • Read the posts below so you understand what are expenses, what you can claim, and how they need to be claimed. There are categories people! 
  • The North American Industry Classification System (NAICS) Code for bloggers is 711513
  • Get to know the Canada Revenue Agency - T4002  Business and Professional Income Guide & T2125 Statement of Business or Professional Activities.
  • Don't assume you understand terms and classifications. If you're not sure check in the posts, guides or call CRA. (I'm working on putting together a basic glossary of terms I came across related to blogs and taxes ... stay tuned) 
  • There are lots of tools and resources out there to help track and organize your bookkeeping, records, and understand the ins and outs of taxes and your blog. So you really have no excuse. 

Below are some excellent posts about Blogging and Canadian Taxes that are definitely worth the read:

Other Links: 

Because in my world nothing can be said to be certain except, blogging, death and taxes.

Yep, just me Cathy thinking out loud about what I think is worth the read. 
 Note: I have not been compensated for this post (yippy - no tax implications here!). All opinions are my own and the purpose of this post is merely to share with my readers posts and articles I find interesting. 

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