Tax laws differ from country to country and in the United States, they even differ from state to state but unless you live in a country where people are not required to pay income tax (that must be heaven?!), your income from blogging and internet activities is generally taxable.
No, this is too early for the April Fool’s Day and ghost stories are usually more interesting on Halloweens. Since ignorance of the law excuses no one, you better check the taxation rules in your country because generally, all income realized from whatever source is considered a taxable income.
You’re bound to declare all your income from blogging and other internet activities in your income tax statement.
Unless you can specifically point out a specific law in your country that makes your income from blogging and other internet business and activities as a tax exempt income, you’re bound to declare all your income from internet activities in your income tax statement preparation. That’s how laws are interpreted. Laws or rules are applicable to all except when exemptions are expressly set forth in another law or in some provisions of the law itself.
Affiliate Commissions Are Taxable
Earning affiliate commissions? Don’t think that just because you earned it online makes it invisible in IRS or tax authorities’ eyes. The reason why most affiliate companies based in the US require you to fill up form W-9 if you’re a US person and the Certificate of No United States Activities and the W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Withholding if you’re non-US person is that they are required to report those income you had earned to IRS.
Most paid post writing sites also require you to give information about your TIN prior to payment because they are required to submit reports to tax authorities. Some companies ask you for that info after you reach a certain level of income but regardless of your income, you will still be included in their reports. Your online income is not totally “traceless”.
Advertising revenues from ads slots on your blog and even those you earn from clicking in PPC sites are also taxable. If you’re lucky, some offshore PPC sites don’t report their revenue generating activities but if you leave an audit trail on your site (like a blog post about all the income you earned online), it might be used during a tax investigation.
They say that two things are certain in this life: death and taxes. It’s sad to know that even in blogging, it’s applicable.