Taxes for content creators and influencers

What counts as income?

Report all income, with or without a form. See reporting income without a 1099.

Prize money from creator competitions is also taxable income.

Creators who sell courses or coaching should also see taxes for online coaches and course creators, and those earning TikTok Shop commissions, TikTok Shop seller taxes.

Are free products taxable?

If a brand gives you something in exchange for content or promotion, it is payment for services and taxable at its fair market value. A genuinely unsolicited item with no obligation is more arguable; keep a record of what you received and what was expected. Items you return are not income.

Products you keep and use personally after reviewing them do not become deductible just because you featured them. If they are used only for the business, such as filming props, they can be business assets.

What can you deduct?

• Cameras, lighting, microphones and computers, often fully in the first year. See Section 179 vs bonus depreciation.
• Editing software, subscriptions, music licences and stock assets.
• Editors, designers and managers paid as contractors. See paying contractors.
• A home studio or office that meets the home office tests. See home office deduction.
• Travel mainly for creating content, and 50% of business meals.

Clothing and grooming are generally not deductible unless unsuitable for everyday wear.

Keep receipts and note which video, post or campaign each purchase was for, which makes the business purpose clear.

How should creators organize their taxes?

1. Use a separate account

   For all platform payouts and creator expenses.

2. Log products and trips received

   With their value and what was expected in return.

3. Pay quarterly estimates

   Nothing is withheld for US creators. See estimated quarterly taxes.

4. Consider an S corporation

   Once profits are steady and high. See when an S corp saves tax.

What if brand deals are paid to your company?

Many creators form an LLC so sponsorship contracts and platform payouts go to the business. A single-member LLC changes nothing for income tax: the profit still goes on Schedule C. An S corporation election can reduce self-employment tax once profits are high, with a reasonable salary paid through payroll. See how to start an LLC.

Do creators collect sales tax?

On merchandise sold through your own store, yes, in states where you have nexus. Many states also tax digital products such as presets, courses and downloads. Sales through marketplaces are usually handled by the marketplace. See how sales tax works.

What does an example look like?

A creator in Texas earns $38,000 of platform ad revenue, $25,000 from three brand sponsorships, $6,000 of affiliate commissions, and receives $3,000 of products for reviews she agreed to post. Her income is $72,000. She spends $9,000 on a new camera and lenses, $2,400 on software and music licences, and $8,000 on a freelance editor, leaving about $52,600 of profit before her home studio deduction, taxed for income and self-employment tax.

What about creators outside the US?

Platforms may withhold US tax on the portion of earnings from US viewers or customers, at a treaty rate if you submit Form W-8BEN with a treaty claim, and at a higher rate if you provide no tax information. Earnings from viewers outside the US are generally not subject to US withholding. You remain taxable in your home country. See Form W-8BEN instructions and the 30% withholding.

This guide is general information. It is not tax or legal advice for your situation.