If you make money on YouTube, TikTok, Instagram, Twitch, or a podcast, the IRS considers you self-employed. That comes with real tax to pay, and real deductions you should be taking. This is what our CPAs actually look for when we onboard a creator.
AdSense, brand deals, affiliate payouts, Twitch subs, Patreon, merch, courses, and Stripe income all count as self-employment income. You owe federal income tax plus 15.3% self-employment tax on the profit, which is revenue minus deductible expenses.
The good news: every ordinary and necessary expense you incur to create content reduces that profit. The habit that separates creators who overpay from creators who don't is simple. Track expenses monthly, keep receipts, and file on time.
Cameras, lenses, mics, ring lights, softboxes, tripods, gimbals, and capture cards used for content are deductible. Gear over about $2,500 may need to be depreciated instead of expensed in year one.
Adobe Creative Cloud, Final Cut, DaVinci, CapCut Pro, Descript, Notion, Canva Pro, Frame.io, and stock footage or music subscriptions are ordinary business expenses.
A dedicated space used regularly and exclusively for content can qualify for the home office deduction. You can use the simplified method ($5 per square foot up to 300 sq ft) or actual expenses based on the business-use percentage of your home.
Deduct the business-use percentage of your internet and phone bills. If you have a home office, a share of electricity, gas, and renters or homeowners insurance is deductible too.
Flights, hotels, ride share, and 50% of meals are deductible when the primary purpose of the trip is business, such as a shoot, sponsor event, or conference. Keep an itinerary and receipts.
Props, set pieces, backdrops, and costumes used only on camera are deductible. Regular street clothes are not, even if you wore them in a video.
Editors, thumbnail designers, virtual assistants, managers, and photographers are deductible. Issue a 1099-NEC to any US contractor you pay $600 or more in a year.
Website hosting, email marketing, scheduling tools, VPNs, cloud storage, and analytics platforms count as ordinary and necessary expenses.
Courses, coaching, masterminds, and books that maintain or improve skills for your current business are deductible.
If you are self-employed and not eligible for a spouse's employer plan, premiums for you, your spouse, and dependents may be deductible above the line.
A Solo 401(k) or SEP IRA lets creators shelter a meaningful share of profit. Contribution limits are higher than a personal IRA and reduce current year taxable income.
50% deductible when there is a clear business purpose. Note the who, what, and why on the receipt.
Once your creator profit is consistently above roughly $60,000 to $80,000 a year, an S-corp election often pays for itself. You pay yourself a reasonable salary through payroll and take the remaining profit as a distribution, which is not subject to the 15.3% self-employment tax.
An S-corp adds real overhead: payroll, quarterly filings, a separate return, and more bookkeeping discipline. It is not automatically the right move at $40,000 in profit. A quick call with a CPA is usually enough to know if the math works for you this year.
We run bookkeeping and tax for creators every day. Book a free financial checkup and we will tell you exactly what to change this year, whether or not you work with us.
This guide is general information for creators in the United States and is not tax or legal advice for your specific situation. Talk to a CPA about your circumstances before you file.
