Subscribe by email

Enter your email address:

Delivered by FeedBurner

Followers

Bloggers have to Claim Review Items? Yes we do.

Yes you can call me ignorant. Dumb no but definitely ignorant because I didn't know that.

While I do make a very small amount of money from advertising sources on my blog the amount is really Peanuts but being a SAHM any bit helps me to feel as though I am earning my keep so to speak. Leaving a paid job two years ago right before my son was born was hard.

I always wanted to be able to stay at home with my kids but when I had my daughter is was not financially possible. When I found out I was pregnant with my son I knew I would be able to stay at home with him until at least he entered school.

The hardest thing for me has been that I don't earn a paycheck. Its easy to gauge your worth with a pay check but when that is taken away and you are being cared for 100% financially by a spouse it can be a hard pill to swallow.

I started my blog with the intention of having an outlet for me. It did progress though to what it is now and I love it. I have met some awesome people and have been exposed to so many things!

Back to my ignorance. I had always planned on claiming any cash money earned regardless of amount on my taxes I mean I earned it so therefore its my responsibility to pay taxes. What I didn't know is that every single item I review is considered income as well! Well that certainly puts things into perspective doesn't it?

Bloggers who do review should ALL be claiming their review items but I doubt that the majority do! This kind of puts me in a panic! I am being venerable in this post to show you that being a review blogger is not all about getting FREE products, they are anything but free.

I am super duper anal when it comes to receipts BUT because I dint know that items I reviewed were income I haven't saved a thing! Thank god I'm not a huge wildly successful blog(YET) hahaha I mean it would be good and bad.

Sorry the foods I receive or deodorants aren't cash in my hand, yet I still have to pay taxes on them. This will have an impact on me for sure. I love doing reviews and hosting giveaways for my readers but there will be less reviews that I will take on.

I have never charged any type of fee from sponsors to do them so there is no monetary compensation to cover any taxes due. The reviews you will see will be for things that I can justify paying taxes on.

Giveaways will really have no bearing so don't worry guys you will still have them here when I am approached, but there may or may not be a review included depending on the product!

This post is just so that you can have a look into my world, and to let you all know that review bloggers are responsible for claiming review items on their taxes. I can't make everyone do what is right all I can do is look out for my behind!

My blog and I will be huge one day (yes this is me dreaming out load again) and I don't want to have one year of my head in the sand cost me big time!

10 comments:

Haasiegirl said...

i think its something that was a hobby that quickly became a mainstream income, so your not ignorant. Its just new ground!

trisha

Tammy said...

Thanks for posting this! I hope to make some money some day. It will make me think about the reviews I do. Do you know if they are suppose to send you a receipt with every product you are sent?

Lisa P@www.isitmondayalready.com said...

tammy sadly unless you make 600 or more form anyone in one year by law they do not have to send you a 1099. BUT they can still send your info into the gov without sending you anything! Its up to you to keep records I found this out the hard way this year!

Brandy said...

So true, so true!!

What it is honestly is that everyone is catching on to the fact that bloggers are making money in other ways in addition to making real money. I don't think that the IRS or anyone thought us bloggers would get so big so fast, ya know?

Reality is we are getting into mainstream ... and that's a great thing for exposure but it's going to cost us in our pockets!

We will see how this pans out for sure in the upcoming years as they crack down on bloggers and probably look for as many ways as they can to get those taxes paid to them ....

Tammy said...

I think what is surprising to a lot of bloggers is how quickly the small review items add up - a mouthwash here, a belt there, a tshirt, box of cereal, laundry detergent - and whammo you all of a sudden have a large amount of $$ to claim!

Lisa P@www.isitmondayalready.com said...

Tammy you are so right I was blown away when I added it all up. This I why I will be really evaluating what I review. If its something I can readily purchase on my own then I will probably just do that. Things will have to really peak my interest or be super duper new and fun or have a big benefit to my family for me be able to justify it as something I want to claim as income.

Ill still give my Opinions on things that I buy that are worth a mention, and I will still try to do giveaways for my readers!

blueviolet said...

This is probably going to really change how we do things. I wonder if donating our review items would help to balance it out.

Momstart said...

I try to donate at least 75 percent of what I review, but also, I watched those videos, and the IRS hasn't even decided in finality what to make of it all. It's a "grey" area and I'm not saying don't claim it as income, I'm just saying, some of it are really samples and were never going to be sold in the first place. Journalists, don't claim everything they review, magazine companies don't claim what they review. I spent a whole day worried about all this and then talked to my husband about it all. I feel much better now, and it will be interesting to see what the IRS finally decides.

Shop with Me Mama said...

Definitely did not really know this either, just found it out!

Lisa P@www.isitmondayalready.com said...

Momstart you bring up a very good Point this is a gray area. I am poking around more to get some further info. I always knew and agree with cash money but you are so right about Samples and other journalists not claiming these"samples" as income!~ Once I get more info you bet your bippy I will post it here for you all!

Blog Archive