Assuming ya got a 1099-MISC tax form for the 11k, throw it on a Schedule C and claim it as Affiliate Marketing income, expense your domain renewal for the blog, web hosting fees for the blog, advertising expenses google, link buys etc... keep receipts for every expense you make during the year so when tax time comes each of your sites has a folder of receipts organized instead of having to dig for 12 months of paypal receipts. You could also use turbo tax and it will generate the schedule C for ya and walk ya along. Basic response based on sole proprietor with just cash in minus expenses, if your looking to go write off crazy phone, car, office, meals and test the loopholes find a good accountant.
