Taxes for content creators: What you need to know to stay IRS-compliant

In 2021, YouTuber Bill Omar Carrasquillo, better known as “Omi in a Hellcat,” pleaded guilty to copyright infringement and tax fraud (Source: FOX 29^[1]).

His punishment? Over five years in federal prison and the loss of more than $30 million in assets—including nearly $6 million in cash.

Once upon a time, massive tax fraud cases mostly involved corporations, celebrities, and politicians—the usual suspects. But today, content creators are under the same microscope, facing serious financial scrutiny and legal consequences.

So, what does this mean for you?

Your passion for content creation may have started as a hobby, but if you’re making serious money, the IRS sees it as a business. And businesses have tax obligations.

But staying compliant isn’t as complicated as it might sound—if you know what to do. 

In this blog, we’ll break down bookkeeping for content creators, the taxes that apply, and everything you need to know to stay compliant—so you don’t end up losing your hard-earned assets (or worse, facing jail time).

Why do content creators need to pay taxes?  

If you’re making money as a content creator, you have to pay taxes—whether it’s a side gig or your full-time career.

The IRS considers any income over $400 from brand sponsorships, ad revenue, tips, affiliate links, or digital product sales as self-employment income. 

That means you’re not just an influencer—you’re a business owner in the eyes of the IRS.

Most content creators work with brands as independent contractors, not employees. If you earn at least $600 from a brand, they’re required to send you a 1099-NEC form, which you’ll report on your 1040 tax return using Schedule C. If you work with multiple brands, you’ll get a separate 1099 from each one and will need to track all your earnings accordingly.

It’s important to note: You still have to report all income, even if it’s less than $600 or if you don’t receive a 1099. The IRS doesn’t care whether a brand or platform sends you a form—you’re responsible for tracking and reporting every dollar you make through accurate bookkeeping for content creators.

What counts as taxable income for content creators

If you’re earning money as a content creator, the IRS doesn’t care how you get paid—it’s all taxable. Whether it’s cash, tips, free products, or even cryptocurrency, it must be reported as income.

Here are some common sources of taxable income for content creators:

• Affiliate marketing – Commissions earned from promoting products or services through your blog, website, or social media.
• Ad revenue – Income from YouTube AdSense, Twitch ads, or display ads on your blog.
• Sponsorships & brand deals – Payments for featuring or promoting a brand’s products in your content.
• Direct sales – Revenue from selling your own merchandise, courses, or digital products.
• Donations & tips – Contributions from followers on platforms like Patreon, Ko-Fi, Buy Me a Coffee, or TikTok gifts.
• Speaking engagements & appearances – Fees earned for attending events, giving talks, or guest appearances.
• Licensing fees – Payments for allowing others to use your content, images, or brand likeness.
• Product & service compensation – If a brand pays you in free products, travel, or services instead of cash, the fair market value of what you receive must be reported as taxable income.

If you’re making money (or receiving something of value), the IRS expects you to report it.

How to report your income as a content creator

To properly report your earnings and stay compliant with the IRS, you must ensure accurate bookkeeping for content creators. Then you’ll need to use the right tax forms based on how you generate income. 

Here are some of the most common ones:

• Schedule C (Form 1040)^[2] – Used to report your business income and expenses as a self-employed creator.
• Schedule SE (Self-Employment Tax) – Calculates Social Security and Medicare taxes for self-employed individuals who earn $400 or more in net self-employment income.
• Form 1099-NEC – Sent by brands or companies that paid you $600 or more for sponsorships, freelance work, or other non-employee compensation.
• Form 1099-K^[3] – Issued if you receive over $20,000 in transactions and 200 payments through third-party payment processors like PayPal, Stripe, or Venmo (though thresholds vary by state).
• Form W-9 – A form you provide to brands or sponsors so they can issue you a 1099-NEC at tax time.
• Form 1040-ES^[4] – Used to estimate and pay your quarterly self-employment taxes, since taxes aren’t automatically withheld like they would be in a traditional job.

The forms you’ll need depend on how you receive payments and how much you earn. For example, if you earn $600 or more from a brand deal, the company will send you a 1099-NEC, which you must report on Schedule C of your Form 1040.

Pro tip: Even if you don’t receive a 1099-NEC^[5] or 1099-K^[6], you’re still required to report all income you earn as a content creator. The IRS expects you to track and report every dollar—whether or not a form lands in your inbox.

Are there any tax write-offs for content creators

Here’s a silver lining—you don’t have to pay taxes on every dollar you make. Since you’re self-employed, you can write off business expenses to lower your taxable income, just like any other entrepreneur.

Here are some common tax write-offs for content creators:

• Equipment & gear – Cameras, microphones, lighting, tripods, computers, and external hard drives.
• Software & subscriptions – Editing programs (Adobe Premiere, Final Cut Pro), design tools (Canva, Photoshop), and scheduling apps (Later, Hootsuite).
• Home office expenses – A portion of your rent, utilities, or furniture if you use a dedicated space for content creation.
• Travel for content – Flights, hotels, meals, and transportation for business-related trips, including events, collaborations, and sponsored shoots.
• Marketing & advertising – Paid social media promotions, website hosting, and email marketing tools.
• Professional services – Fees paid to accountants, lawyers, managers, or business consultants.
• Internet & phone bills – A percentage of your monthly internet and phone expenses based on how much you use them for business.
• Education & training – Courses, workshops, or certifications that help you improve your skills in content creation, editing, or marketing.

A few things to keep in mind:

• Only business-related expenses count. You can’t write off your entire phone bill, but you can deduct the percentage used for content creation.
• Keep detailed records and receipts. If the IRS ever asks for proof, you’ll need documentation to back up your deductions and that’s where bookkeeping for content creators makes all the difference.
• As your business grows, taxes get more complex. Working with a tax professional who understands the content creation industry can help you maximize deductions while staying compliant.

When done right, tax write-offs can significantly reduce what you owe—so don’t leave money on the table!

Also read: 18 popular tax deductions for business owners in 2024-2025

How to file taxes as a content creator

Filing taxes as a content creator isn’t as simple as getting a W-2^[7] and calling it a day. Since you’re self-employed, you have to track your income, report earnings correctly, and handle deductions on your own. Here’s how to do it:

1. Determine your tax status

Before filing, you need to figure out whether the IRS sees you as a business or a hobby. If you’re consistently creating content to make money—and earn more than $400 from sponsorships, affiliate links, or digital products—you’re running a business in the IRS’s eyes, which means you must report all earnings and pay self-employment taxes.

Most content creators start as sole proprietors, meaning your business income is reported on your personal tax return. As your income grows, you may want to form an LLC or an S-Corp for added tax benefits and liability protection.

Also read: S corp vs. LLC: Differences and benefits

2. Track your income

The IRS expects you to report all earnings, even if you don’t get a 1099. That means keeping a detailed record of every revenue stream through proper bookkeeping for content creators, including:

• Ad revenue from platforms like YouTube, Twitch, or TikTok.
• Payments from affiliate marketing programs.
• Invoices for sponsored content and brand deals.
• Sales from merch, courses, or digital products.
• Donations from platforms like Patreon^[8], Buy Me a Coffee^[9], or Ko-Fi^[10].

The easiest way to stay organized is by using accounting software like QuickBooks or Wave^[11], or even a simple spreadsheet. Many tax professionals also recommend opening a separate business bank account and credit card to avoid mixing personal and business expenses—which can lead to major headaches at tax time.

3. Identify and maximize deductible expenses

One of the perks of being a content creator? Many of your expenses are tax-deductible, which can lower your taxable income and save you money. But to take advantage of these deductions, you need to keep detailed records and receipts of all business-related purchases.

Some often-overlooked deductions for content creators include:

• Props and costumes used for videos or photoshoots.
• Music and stock footage licenses for content production.
• Website hosting and domain fees for personal blogs or portfolios.
• Coworking space rentals if you work outside of home.
• Conference and networking event fees related to your industry.
• Subscriptions to industry tools and resources, such as editing software, stock images, or research platforms.

To be deductible, an expense must be ordinary (common in your industry) and necessary (helpful for running your business). If you’re unsure whether an expense qualifies, a tax professional can help clarify what you can legally write off.

4. Estimate and pay quarterly taxes

Unlike traditional employees who have taxes automatically withheld, self-employed content creators must handle their own taxes. If you expect to owe $1,000 or more in taxes for the year, the IRS requires you to make estimated tax payments every quarter.

Here’s how to calculate your quarterly tax payments:

1. Estimate your annual income and deductions.
2. Calculate your total expected tax liability, including income tax and self-employment tax (Social Security + Medicare).
3. Divide this amount by four to determine your quarterly payment.
4. Pay the IRS by the due dates: April 15, June 15, September 15, and January 15.

Skipping quarterly tax payments (when required) can lead to IRS penalties, so it’s important to stay on top of them. A bookkeeper or accountant can help you set up a system to avoid tax surprises.

Also read: Do you need an accountant for your small business?

5. Prepare and file your annual tax return

When tax season arrives, you’ll need to file your annual return and settle any remaining tax liability. 

Here’s what that involves:

• Gathering all income records, including 1099-NEC^[12], 1099-K^[13], and any direct payments received.
• Compiling receipts and records of deductible expenses to reduce your taxable income.
• Filling out Schedule C to report business income and expenses.
• Completing Form 1040 along with any additional required forms for your content creation business.

Also read: 1099-NEC vs 1099-MISC: Differences, deadlines, and how-to’s

Once your paperwork is ready, you can file online using tax software or work with an accountant to ensure everything is accurate. The IRS accepts payments through direct deposit, credit card, or installment plans if needed.

Tax filing is a tedious process, but keeping good records and filing on time saves you from penalties—and helps keep more of your hard-earned income.

The bottom line

Keeping up with these tax guidelines and filing the right forms correctly ensures you stay compliant with the IRS—protecting yourself from hefty fines and penalties. It also safeguards your reputation, because let’s be honest, which brand wants to sign a deal with someone flagged for tax issues?

But handling taxes and bookkeeping on your own? Probably not the best idea. If you were passionate about spreadsheets and tax codes, you’d be an accountant—not a content creator.

So, what’s the best way to stay on top of your finances without the hassle of DIY bookkeeping?

By outsourcing it to experts who can handle it for you—accurately and efficiently.

At CoCountant, our team of expert bookkeepers and tax professionals ensures your financial records stay accurate, your taxes are filed on time, and your business remains IRS-compliant. We assign a dedicated bookkeeper who understands your business, helping you navigate tax filings, deductions, and financial management seamlessly.

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