Bloggers often receive compensation for what they write. The blogger may have an employment contract with the company that pays them, so the fees received for the blogs are treated as wages. In addition to the wage income, the blogger may also receive other earnings. As a result, the taxable earned income consists, in addition to the wages, of cash payments connected to the writing or to the sales of a product, and of the receipt of various goods and benefits, discounts, gift cards, trips, and invitations. Compensation paid in forms other than cash must be valuated at its fair market value. A blogger's activity may be treated as operation of a trade or business if the activity meets the characteristics of a business.

The blog may be viewed as a work which gives the author copyright. Therefore, compensation received for the selling of it, or for the selling of its rights of use, may in some cases be treated as royalty income received in exchange of the copyright.

Ordinary promotional gifts are not treated as the blogger's taxable income. However, if there has been an agreement that the gift is the compensation paid to the writer for writing a blog text, the gift's fair market value is taxable income. If the blogging activity is merely a hobby, any expenses relating to it may not be deducted from any other income except from the income generated by the blogging.

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