Many review bloggers are unaware that they have to pay taxes, even when they receive products for free. The item still has a value and is still considered taxable in the eyes of the IRS. If you earn money from your blog, you have to file taxes.
It is a Business
If you actively work on a blog and have earned any money from it for 3 out of the last 5 years, it makes your blog a business. Once you reach that status, you must file taxes.
Deductions
Be aware of the deductions you can claim on your taxes. This may help offset what is actually owed from self-employment. Work with a tax preparation specialist to ensure you take necessary deductions.
Must Claim Product Values
Every product you receive to review has a value. You must claim the value of the product using itemization practices.
Must Claim Sponsorship Values
If you are sponsored by a brand or individual, and are compensated in any way, you must claim the value of the services compensated for. You must show the value of the sponsorship and provide the dollar amount attached to it.
Must Claim Earnings
As a blogger you are self-employed and so therefore you are subject to self-employment taxes. If you earn more than $400 from your blog, either in products or actual payments, you must claim it.
Review bloggers are not tax-exempt. Everything that you do has a value. There are a few exceptions to not having to file, and the most distinct is the value of the products and earnings. If you do not earn or receive $400 in products or income, you do not have to claim the income.
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