If you live in the United States, you know that the arrival of winter signifies that not only is winter all but over but that we are all officially knee-deep into tax season.
The only time of year when reality tv consumption is replaced by the incessant clicking of calculator keys. Where the guilt-ridden chore of writing out Santa’s naughty list pails in comparison to the receipt-retiring foolishness of reliving the previous year’s financial misdeeds one spreadsheet at a time. A time when your least favorite sentence is adjusted withholdings.
Now you may ask, why the horror and fury? In America, our bravado prevents us from legitimately fearing very little. With one exception. The angriest of housewives, the meanest of mistresses, the sorceress of the side-eye, the Internal Revenue Service.
Even for us influencers, bloggers, podcasters, and YouTubers, there’s no exception. As independent contractors, we’re always made an example of this tax season. This means: You’ve got to pay the Pieper!
But before I get ahead of myself, let me state this: While I am a former attorney, my specialization was not tax law. I’m also not an accountant and so you should always consult an accounting professional if you are unsure about your tax filings. Especially if this is your first fiscal year working as an influencer or if you haven’t been paying taxes on your earned online income or sales tax filing.
Whether you are making a little or a lot, you should treat blogging, podcasting, influence work, agency placement, and YouTube creation like a small business that will be taken seriously by the IRS, if not by you. If you made at least $600 from your posts, media channels, or videos this past year, you should receive a 1099 form. A form is transmitted to both of you as an influencer and cc’ed to the IRS.
Be prepared to offer the IRS more than fairytales and glitter dust when filing your taxes.
With that said, I am pretty savvy when it comes to personal finance and have studied tax law independently for many years. With this knowledge in mind, I write this post.
Filing taxes may seem like a daunting tax, but getting your tax records in order to properly file, is a simple process.
First, all of the information you need to make informed decisions are available from the IRS website, and more importantly, not forgetting to claim sole-proprietor status on your taxes. This will allow you to subtract things related to your business.
This is by far the simplest and most overlooked part of the whole process. Even if you have formed an LLC, you can still claim sole proprietorship and get the added benefit of protecting your personal assets. You may also benefit in the future, by paying for your taxes quarterly to prevent issues that come with excessive bulk preparations during tax season.
Second, there’s also a silver lining. As an influencer, there are a wide variety of things you can deduct from your taxes. Which is awesome. Because let’s face it, we should all be taking advantage of every tax break you can get.
Remember, influencing is a business and all business entities accrue business expenses. Many of which are tax write-offs. But not everything is a business expense. So what can you claim?
The blanket term from the IRS is that you can deduct: Any ordinary, necessary, and reasonable expense that helps you earn business income.
A simple way to determine if you’re making a good claim is to give it the laugh test. If you can put it on your forms with a straight face, without thinking you going to jail or purgatory, its safe to assume you could claim it on your taxes.
But do be careful not to overlook any potential deductions. According to Forbes, the IRS believes that a full 20% of eligible Americans miss out on tax breaks worth up to $6,318.00 each year!
While you won’t be able to claim any of the products you have purchased for haul videos, toys for your children you have reviewed, or your OOTD on Instagram, there are many expenses you can claim, including:
Equipment Depreciation: for cameras and editing computers. You can deduct 20% off of equipment each year for 5 years and since 2012 there has been a law made that allows for claiming 50% depreciation on the first year of owning the equipment.
Advertising: Services like Promoted Videos on YouTube to advertise your content and gain viewers and the cost of prizes from contests and giveaways as they are very closely related to advertising can be claimed.
Home Office Usage: If you have a space in your home, or shared external space, dedicated to YouTube, podcasting, or blogging, even if it’s a hobby, you may be eligible for a pretty sizable deduction. But these spaces must be used, for the sole purpose of business 2 or more days per week, for the entire year, to qualify as a deduction for the IRS.
Cell Phone Usage: If you have a cell phone dedicated to your YouTube channel or blog that you regularly use your phone for networking or managing videos and comments it could qualify for a deduction as well.
Professional Advice: Did you seek any help in getting your channel off the ground? Perhaps sought website critique or professional review? Any experts whom you pay to help guide you in making sound business decisions are taxable deductions.
Gas mileage: Driving to airports, driving to pick up supplies, or even driving to do a collab. It’s all about the business. Save every receipt and write off those miles!
Conference Fees: Conference attendance is are tax-deductible. Not only the cost to attend the conference itself, but just about any expense related to it from food, hotel room, cab rides, airfare and even the business cards you hand out.
Video Editing Software: Are you still using Windows Movie Maker? Consider upgrading to something better and write it off on your taxes. Software used for your business is tax-deductible.
Data Storage: Do you use external drives or a cloud-based storage service? All of these things could be tax-deductible.
Home Telephone Line: Like with cell service, if this line is primarily used for your business, claim it on your taxes. But if the line is used for general home use is not tax-deductible.
Clothes: If you primarily work from home, your pajamas and yoga pants are not tax-deductible. Uniform or specific clothing used for producing videos can be deducted on your taxes.
Photo Props: According to federal tax code Section 162, buying or leasing props, used to film or video record work is a tax deduction.
Personal Expenses: If something is more of personal responsibility than a business one, you’re going to get red flagged. If its used more than 80% for business, include it.
Trips: Was a trip taken for the sole purpose of conducting business? Include those recorded expenses on your return.
Work-related art: Using stock photography? That’s deductible!
Photo Lenses: Deducatble!
Printers: Does your all-in-one printer need upgrading? You can deduct that expense if the printer is primarily used for business. Included pitched review items!
Lighting Equipment: Deducatble!
Scanners: Scanners used for the sole purpose of conducting business, deductible!
Laminators: Laminators used solely for business, not the home or homeschooling is deductible. Unless you run a homeschooling YouTube channel!
Stencil Makers: Do you have an ETSY shop or show stencil making on your media outlets? That’s a deduction.
Trade show fees: Attending trade shows? Keep those receipts as they may be tax-deductible.
Days out of work for reviews: Keep your receipts, as those costs may be tax-deductible. And if blogging isn’t your main gig, they also serve as time-qualifying evidence.
Professional Web Design Costs: If you’re like me and use a web designer to create any aspect of your bog, that’s a tax dedication in your favor.
Work-Related Books: Maintain a collection of up-to-date work-related books on business or finance? They may be tax-deductible but are subject to depreciation.
Research fees: If you accrue fees to research niche-specific topics on your site or use services such as TubeBuddy for YouTube creator research analysis, those fees are tax deductible.
LLC Costs: If you have incorporated your business as a limited liability corporation, the legal and service fees associated with this process may be tax-deductible.
Postage: Postage costs, such as mailing giveaway prizes to recipients or snail mail pitch companies, can be deducted from your taxes.
Educational classes: Accredited course-work, such as obtaining a field-related degree will be a tax deduction for you. Both federally and state.
Subscriptions for research and data management sites: Research fees, for niche-specific work, can be deducted from your taxes.
Software licensing fees: Licensing Fees, for subscriptions such as Adobe Suite, can be deducted from your taxes.
Custom chargers: If you have had to purchase a specific charger for a business-related device, the costs accrued are tax-deductible.
Tax software: Business-edition only tax preparation software is a tax deduction!
Trademark and copyright fees: Fees associated with creating trademarks, copyrighting, watermarking, and branding your work is tax deductible
Newsletter Service Fees: Fees associated with premiere subsection-based newsletter delivery services are a tax deduction each year.
Live App Fees: Fees to purchase a subscription to use apps that promote your brand being live online via Facebook or YouTube, such as Be Live Tv, is deductible.
Video Conferencing Fees: Fees associated with video conferencing, such as Skype, are tax-deductible only for business meetings! Not to call Grandma in the old country or to catch-up with friends in the motherland!
Virtual Assitant Courses: Courses taken in the act of preparing to become certified to be your own virtual assistant, or to assist others, is a tax-dedication.
Paralegal fees: Courses taken in the act of preparing to become certified to be your own paralegal, or to assist others, is a tax-dedication.
Business lunches and meetings: Meals that accrue expensive during business meetings are tax deductions.
Self-storage fees for business equipment: Business-related equipment that requires storage or maintenance can be tax deducted.
Bank Security Box Fees: Fees associated with the storage of legal paperwork in bank security boxes can be deducted from your taxes each year.
Notary Fees: Fees associated with notarizing legal business-pertaining documents can be deducted from your taxes.
Antivirus software: software used to protect the security of your site may be a deduction for you come tax time!
Long distance bills: Long distance bills accrued for business purposes only can be deducted from your taxes.
Work-related car repairs: Car repairs accrued for vehicles that are relegated to work-only vehicles can be deducted from your taxes.
Losses due to theft: Losses due to business-expense related costs may deductible from your taxes.
Website hosting fees: Web hosting fees, for sites such as Bluehost, might be a tax deduction for you.
Domain costs: Costs associated with domain fees for your blog may be deducted from your taxes each year.
Redirect Fees: Fees associated with redirecting blogs from a wordpress.com to a wordpress.org account may be a tax deduction for you.
Freelance photography fees: The fees associated with the commission of freelance photography or its use may be a tax deduction for you this year.
Archival Fees: Fees associated with archiving your site’s original photography or written transcription services can be deducted from your site.
Business cards: The fees associated with creating cards can be deducted from your site. Keep this in mind before your next conference!
Letterhead: The fees associated with creating logos for business letterhead can be deducted from your business.
Stationary: Stationery products used in correspondence from your business or LLC can be deducted from your taxes.
Promotional Swag: Swag or merch costs for products used to promote your site or channel can be deducted from your taxes.
Computer upgrades: The costs of upgrading a business-only laptop, pc, or tablet can be deducted from your taxes.
Hotel expenses: Lodging costs associated with travel for blogging, including cruises and conferences, can be deducted from your taxes.
Hotel costs for review trips: Review trips that accrue hotel costs can be deducted from your taxes. Minus taxes on your stay, of course!
P.O. Box fees: Business-related Post Office box fees can be deducted from your taxes.
Prizes for hosted giveaways: Costs associated with the purchase of giveaways on your media channels can be deducted from your taxes.
Up to 20% of your internet bills: Up to 20% of your high-speed internet and Wi-Fi costs each year can be claimed on your taxes.
Microphones: The fees associated with the purchase of professional sound equipment, including microphones, for broadcasting and podcasting, can be deducted from your taxes.
Sound Mixers: Podcasting sound mixer and recorder costs can be deducted from your taxes.
Sound Filters: Filters and muffs used in podcasting and video voice-overs can be deducted from your taxes.
Podcast Editing and Uploading Service Fees: The service fees for using sites for editing, uploading, or storing your podcasts can be deducted from your taxes.
The Podcast and YouTube Hosting Fees: Fees associated with the website hosting costs for your podcast or YouTube thumbnail services can be deducted from your taxes
Podcast Advertising Fees: Fees accrued as the result of advertising your podcast can be deducted from your taxes.
Podcast and YouTube Intro/Outro Fees: Fees associated with creating intros and outros for your podcast and YouTube channel can be deducted from your taxes.
YouTube Endslate Fees: Fees resulting from the professional creation or purchased kit to commission a YouTube end slate product can be deducted from your taxes.
Vlogmas, Vlogtober, and Vloguary Fees: Fees associated with monthly vlogging celebrations on YouTube can be deducted from your taxes.
Furniture Leasing Fees: Fees accrued because of leasing office furniture can be deducted from your taxes.
Paint: Paint used in the commission of an office dwelling or projects used on business channels can be deducted from your taxes.
Recipe Plug-Ins: Professional cooking or recipe plug-in fees for your blog can be deducted from your taxes.
Antivirus Plug-Ins: Antivirus plug-in costs for your blog can be deducted from your taxes.
Framework Upgrades: Upgrading the framework of your site to a new hosting platform, including the Genesis platform, can be deducted from your taxes.
Makeup, Nail, and Haircare Products: Products used on you alone, in the creation of campaign photography for your online business, can be deducted from your taxes. Haul and subscription products are not tax deductible.
Headshots: Costs associated with having professionally created headshots for your blog, channels, book tours, or social accounts may be deducted from your taxes.
Portfolio Creation: Costs associated with having professionally created portfolio kits, such as being a savings or foodie blogger, may be deducted from your taxes.
Media Kit Creation: Costs associated with having professionally created media kits or media kit template purchase fees may be deducted from your taxes.
Filter Apps: Apps that provide filters for your business-only social media accounts, Facebook Groups, sidebar images, or fan pages may be a tax deduction for you.
Music Licensing Fees: Fees associated with purchasing the licensing to use music in your YouTube videos may be a tax deduction for you.
App Editing Software: Apps used to edit Youtube thumbnails may be a potential tax deduction for you.
Union Fees: Fees associated with belonging to a union, such as the Communication Workers of America, is a tax dedication.
Healthcare Costs: You may be able to a sizeable rebate on fees associated with your privately purchase health care as an independent contractor.
Auditing services: Services purchased as audit-ready servicing in post-tax season times, can be a potential tax-deduction to you.
Paper shredding fees: Fees associated with the proper disposal of business-related paperwork, such as to a business supply store, can be deducted from your taxes.
Binding Fees: Fees associated with binding reports, books, or coursework related to your business can be deducted from your business or ETSY shop.
Teaching Expenses: Expenses related to teaching original coursework as part of your business marketing strategy can be deducted from your taxes.
Manuscript Fees: Fees associated with having an original manuscript professionally proffered and typed is a potential tax deduction.
Self-Publishing Fees: Fees associated with self-publishing book are tax deductible.
Stenography Fees: Fees associated with stenography for your business may be a tax deduction for you.
App Creation Fees: Thinking of creating an app for your blog? That may be a tax deduction for you the year it debuts!
Professional Organization Fees: Fees associated with having a professional organizer overhaul a work-related-only space, can be deducted from your taxes.
Planners: The costs of a single, non-hobbyist planner, including shipping, used to plan business-related events only, can be deducted from your taxes.
Gift Guide Fees: Fees associated with producing gift guides are tax deductible.
Printable Fees: Fees associated with creating free or for-profit printables for your site, including email subscription freebies products, are tax deductible.
Writing instruments: Writing pens, calligraphy pens, and stylus pens used only for business are tax deductible.
After-Post Reports: Costs accrued from reports submitted to campaign leaders including stats pertaining to sponsored campaigns can be deducted from your taxes.
Scheduled Posting Costs: Fees associated with social media posting and tribe-building sites, such as Tailwind, may be tax deductible for you.
Agent and Public Relation Fees: Fees associated with paid agent fees accrued during the promotion of your business may be tax deductible for you.
So, folks, those are 101 potential tax deductions you may qualify for as a blogger, podcaster, live broadcaster, YouTuber, or digital entrepreneur.
While many will qualify for numerous deductions on the before-mentioned list, do keep this piece of information in mind: The most important piece of advice I could give you is to track everything you do related to your YouTube, blog, or Podcast business.
If in doubt as to how to file your taxes properly and on time, hire a CPA at the end of the year and have them review all of those details you’ve kept track of to see what does and what does not qualify as a business expense. It will not only help you reduce your risk of being audited.
Should you get audited, being prepared will help you be able to calmly present all of the information needed to move forward accordingly.
Be sure to share, save, and pin this post for quick referencing during tax season! Now I want to ask, what is your favorite tax deduction as a blogger, YouTuber, or podcaster? I’d love to hear about it below!
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