Creating content for websites, blogs, or social media platforms can be an interesting way to earn a little extra money, or, with enough work, it can even replace a full-time job. But like any source of income, it is taxable. Here are some tips to help you prepare your taxes as a content creator, file them, and maximize your net income.
Do Content Creators Have to Pay Taxes?
Whether you work part-time or full-time as a content creator, any earnings from the gig can be taxed and must be reported to the IRS. At the end of the year, each company that you have worked with will typically send you a 1099-NEC form to document how much they have paid for your content if you have earned more than $600 with that entity for the year. This document serves a similar purpose to a W2 from an employer, detailing your earnings for tax purposes, and even if you earn less than $600 with a company, that income should be reported.
When it is time to file your taxes, you will need to gather all your 1099 forms and list your income on your 1040 income tax return using Schedule C for business profits and losses. Content creator taxes work the same as taxes for an independent contractor and must be completed in a similar fashion.
Do Gifts or Promotional Items Count as Income?
As a content creator or influencer, companies may send you gifts, items to review, or things like branded clothing in order to gain exposure and reach members of your audience. While these may not be part of the official compensation for your content or review, they do count as income and should be reported as such when you file your taxes.
Self-Employment Taxes
When you work as an employee for a company, they are responsible for withholding your Social Security and Medicare taxes, but when you work for yourself, that responsibility falls on you. One of the most important parts of preparing your content creator taxes is paying the self-employment tax. Equal to 15.3% of your total earnings on top of any income tax, the self-employment tax covers your contribution to the Social Security and Medicare systems so that those benefits are available to you when you retire.
Can You Deduct Business Expenses as a Content Creator?
Like any business, as a content creator, you can deduct the costs of products and services that you require for your business from your income. This can be everything from the computers and software that are required to create your content to domain names, web hosting, or even office expenses like furniture or phone lines if you have a dedicated home office for your business. Most expenses can be deducted if the product or service is used strictly for business purposes, though partial deductions may be possible for products or services that serve both a business and personal function, such as a mobile phone or internet connection.
Expert Help With Content Creator Taxes in Dallas
Would you like to make filing content creator taxes as easy as possible? Talk to our team at Gurian CPA. We offer tax planning and filing services, as well as help with business taxes and tax problems. We can guide you through the process of filing your taxes as an independent contractor, and we can help you maximize your deductions while complying with all self-employment rules and regulations. Our CPA firm has locations in Dallas and Houston, and we can help you with all your most complex tax and business matters.
Whether you need to file content creator taxes or create a new business entity to cover your services, our team at Gurian CPA can help. Call (469) 306-9866 today or contact us online to speak with our expert CPAs in the Dallas or Houston area.
