I have to get my taxes done by someone other than myself because I live in North Carolina, worked in South Carolina in 2004, plus I want a professional to handle the blogging income and write-offs.
Unfortunately, I made just enough to go up to a tax bracket higher than the year before and despite the fact that I paid in extra Federal and State money all year of 2004 to make up for the blogging income, I took a beating. I expected to come fairly close to breaking even, but instead, I ended up taking a $1000 hit + a fee from the company that did my taxes. Those are ugly numbers.
Still, I’m interested in finding out how other bloggers are doing their taxes. Has anyone tried incorporating? Does that make a big difference? What sort of expenses are you writing off? There’s not much I can do for this tax bill, but if there’s anything I can do that’ll reduce my tax payout next time around, I’m interested.