Bloggers and Taxes

The Inquirer has a report on the money accumulated through PayPal and the question of whether or not it's taxable:

So it was probably inevitable that it would migrate to cyberspace, where virtual tip jars have been sparking debates about greed, overreaching and taxes.

With the tax deadline tomorrow, there has been chatter about whether cybertips are income, an issue the IRS has yet to address.

But for bloggers with high traffic, devoted followings, or persuasive begging skills, tip jars can mean big bucks, with some A-list bloggers pulling in thousands of dollars a year.
Susie Madrak's tip jar yielded a car.

"My readers sent me $1,500 when my car died," said Madrak, of Bensalem, whose feisty Suburban Guerrilla is at www.suburbanguerrilla.blogspot.com.

Madrak, a fraud investigator and former newspaper journalist, is tooling around in a used Infiniti after sharing her car woes. She begged, hectored, and put up a photo of a cat, warning: "Hit the PayPal or I kill the kitten."

Iowahawk, Instapundit and a slam at Andrew Sullivan are all included.