Whether you publish videos on YouTube or Vimeo, write and post on Substack, sell courses on platforms like Teachable, or engage in similar online content creation and monetization activities, you’re likely looking to optimize your tax savings through various write-offs.
Understanding content creator tax deductions and write-offs is crucial if you’re a content creator or influencer. It will help maximize your earnings and ensure you comply with tax regulations.
This guide will help you navigate the creator and influencer tax write-offs. It will also outline some of the unique expenses you incur and show you how to document them for tax purposes properly.
Unpacking Content Creator Tax Write-Offs
Tax write-offs, also known as deductions, reduce your taxable income, lowering the amount of tax you ultimately owe the IRS. To claim these deductions, you must keep detailed records and receipts of all your business-related — not personal — expenses.
Awareness of the general rules and guidelines for claiming write-offs is essential to ensure compliance with IRS regulations. Thankfully, qualified and reputable tax professionals can assist you with this significantly since the tax code and regulations can change without you knowing.
Common Write-Offs for Content Creators
Equipment: Cameras, lighting, microphones and other gear you use directly for your content creation.
Software and subscriptions: Editing software, music licensing and other digital tools contribute to your final content products.
Home office expenses: If you work from home, you can write off some of your rent, utilities and other services. Be sure to speak to a tax professional regarding how much.
Content Creation Expenses
In addition to your recording equipment, many other items help you create content. You can also write off expenses for the following:
Props and materials: Many items you use in your videos or photoshoots can be written off.
Digital products: You can write off the cost of creating e-books, courses and other digital products that work with your other content.
Subscription services: Similar to software, you may be able to write off subscription fees to stock photo, music and video footage libraries.
Marketing and Advertising
Even big-name content creators use marketing and advertising services. This is one more thing you can entirely or partially right off, including:
Professional services: These include fees paid to marketing professionals or agencies to promote your content, brand or events.
Promotion costs: If you run ads, sponsored content or other promotional activities, you can write off those costs.
Giveaways and contests: You can often write off the costs of running promotions to engage your audience.
Education and Training
Content creators and influencers must stay updated with industry trends and keep learning to grow their businesses. Therefore, you can often get tax deductions on the following if they relate to your business:
Books and online resources: You can often write off the costs of educational material relevant to your business.
Courses and workshops: These are expenses directly related to improving and growing your content-creating skills.
Conferences and networking events: You can often write off the cost of attending relevant industry events that help grow your knowledge and business.
Travel and Transportation
Many creators and influencers spend a lot of time traveling, shooting at different locations, or collaborating with others. These are two potential deductibles:
Travel expenses: This includes the cost of business trips such as flights and accommodation.
Vehicle use: If you use a vehicle for work, keeping a log of your business miles is essential. You should also keep receipts as proof of gas and maintenance expenses. If you use the same car for personal use, you should consult with a tax professional on how to make that distinction properly.
Meals and Entertainment
These will need to be strictly business-related, but it is possible to write off the often high expenses of these two things:
Business meals: You could be eligible to write off meals with clients and collaborators.
Entertainment expenses: These are costs related to content creation, such as event tickets or venue rentals. Ensure that you keep detailed records of the reasons and the receipts.
Clothing Items
Influencers can write off clothes as long as they are considered a business expense. These include:
Costumes
Branded merchandise
Clothing items explicitly used for content creation
To claim these deductions, you must provide documentation and valid justification that the clothing is necessary for your business. For example, suppose someone runs a fashion YouTube channel that educates people on the latest trends. If they use the clothes in the content, they can likely write off the clothing as it directly links to their business.
Miscellaneous Expenses
You might consider several other expenses that fall under the miscellaneous category, such as:
Mobile or telephone bills: If you are on the phone often for work purposes or have a dedicated work phone, you can write off these costs.
Internet service bills: Most influencers and content creators use their internet for work. Part of this bill can go toward tax deductions.
Office supplies: This includes the cost of things such as paper, pens, sticky notes and other office essentials.
Insurance: You likely have insurance on all your equipment. Additionally, you probably have health, liability and other business-related insurance.
Tax Forms and Required Documents
As a content creator or influencer, you must be aware of several essential tax forms and documents. You will need these to submit your tax write-offs successfully. Thankfully, a tax professional can walk you through them to ensure you have everything you need and understand their importance and relevance. The primary ones include:
Form 1099-NEC: This form reports non-employment compensation. If you earn over $600 from a client as an independent contractor, they must issue you a Form 1099-NEC.
Form 1099-MISC: This form used to report non-employment compensation. Now, Form 1099-MISC is only used for other types of miscellaneous income, such as rents, royalties, prizes, awards and other payments over $600.
Form 1040: This is the most common form that content creators and influencers will fill out, along with Schedule C. This individual tax return form is the main form and includes information about your income, deductions, credits and tax liability.
Schedule C: This form is attached to Form 1040 and is for sole proprietors. Use this form to report income and expenses and calculate the net profit or loss if you run your business as a sole proprietorship.
Understanding and using tax write-offs can significantly impact your financial health as a content creator or influencer. Please always keep detailed records and consult a tax professional to ensure you maximize your deductions and comply with all relevant tax laws. Stay organized, and you’ll be well-prepared for tax season!
Trust Polston Tax Resolution & Accounting With Your Tax Write-Offs
As a content creator or influencer, you are a specialist in your field. However, when it comes to tax write-offs and deductibles, you should trust the experienced team at Polston Tax. We have been servicing clients since 2001 and have a dedicated team of tax lawyers, accountants, case managers and tax preparers.
To discuss how we can help you with your content creator tax write-offs, contact us online or at 844-841-9857 today! Schedule your free consultation, and our team will outline how we can help you.
We offer nationwide tax resolution services from our various locations, so we can service your tax needs no matter where you are.
