I got a 1099 for my blog yesterday. Now that is a weird feeling. Google giveth, the federal government taketh away.
Google has some tax information regarding ad-sense income. Basically operating this blog has in effect become a small proprietorship small business. I will deduct hosting costs etc... I wonder if I can deduct time spent on Subtext. That would be pretty sweet.
UPDATE: For my readers not familiar with tax regulations in the U.S., I should mention that the 1099 is used to report income other than wages, salaries, and tips. I linked to the Wikipedia explanation for more details.