If you’re looking to help some people apply for EIN in Colorado, or just looking to write a bit of blog advice for your friends looking to file their tax returns, you yourself need a good grasp of the tax system of the US. Now, of course, you don’t need a degree on economics or whatever, but brushing up on a topic before talking about it shouldn’t be a decision, it’s just part of the process.
- Worldwide Taxation
- In simplest terms, US citizens get taxed regardless where they are and where that money comes from. If you’re a US citizen who’s writing a blog about, oh, say, taxes and how to apply for EIN in Colorado for a web company on the other side of the world, your income’s US taxable. You don’t have to live in US territory to be taxed by the US; if, for example, you managed to apply for EIN in Colorado, and have an EIN, you’ll be taxed by Colorado government.
- Report to the IRS.
- Income made by a US citizen is reported to the IRS, regardless of what form its given and how much of it is given, you’ll get a Form W-2 only if you’re an employee of a company. Regardless of what legal form you get from the IRS, you’ll need to report any payment made to you as income, regardless of how much it is.
- If you’re a blogger, you need to discern personal and business expenses.
- Any expense that is considered ordinary and necessary to your blogging, IE. the payments you made to pay bills you actually need to do blog, like internet connection, hosting fees, and computer software, can be deductible. The important thing is to learn what’s personal and what’s business.
- Blogging as a business is different from doing it as a hobby.
- Business is a serious pursuit, a hobby is something done for fun. You need to make it clear which your blogging is, as that’s what the IRS will use to determine what’s deductable and what isn’t. If you want to be considered a business, you need to adhere to the standards the US set for its businesses.