Today, more people than ever are earning money from posting on Instagram, YouTube or other streaming platforms. In some cases, this money can be quite significant.
However, you need to remember that if you bring in money as an influencer or streamer, you must pay taxes. Thankfully, there are things you can do to minimize the effects of these taxes on your revenue stream, and in this blog post, we will go over some of these suggestions.
Keep Detailed Records
Even if your influencer or streaming business is still relatively small, you need to stay organized and keep track of the income you receive and your expenses. This will help you when it comes time to file your taxes.
Another thing you should consider doing is keeping track of the money coming in and going out throughout the year instead of leaving it for tax time. Not only will this help you maximize your deductions, but if you get audited, you will be better prepared to present evidence of everything since you will already have your invoices, receipts, and other documents.
Stay Smart Regarding Deductions
If you are looking for ways to reduce your payable taxes, the best way is through tax deductions. Fortunately, as an influencer and streamer, there are numerous things you can deduct at tax time, including:
- Your work equipment, such as computers or laptops
- Office furniture, such as desks, chairs, and even stationary
- Advertising and promotion costs
- Trademarks and copyright fees
- Ongoing operational expenses, including the internet bill
Basically, as long as these expenses are an “ordinary and necessary” part of the job as an influencer or streamer, they can be tax deductible.
However, before you start deducting everything you can as an expense, consider first speaking with tax professionals to ensure your deductions are done right. Otherwise, you can be left paying a hefty penalty.
Keep Track of Your Gifts
Generally, if you receive a gift as an influencer, such as a free trip or product, it will be considered income, and you will have to pay taxes on it. The exception to this rule is if the products you received have a total value of less than $100. Under these circumstances, you will not be required to include the value of those items on your tax return.
Work With Financial Professionals
At Ardent Guardian, we want to make sure you have the services you need to set your business up for the long term. Whether that entails financial analysis or planning, we are here to do it all, including providing you with services related to:
- Taxes
- Estate planning
- Risk management
- Accounting
- Business planning, and
- Legal issues
More importantly, you will only have to deal with one point of contact for all these services, saving you time and money that you can spend on growing your business and creating content that will help you get ahead.
For more information regarding any of these services, including tax tips that you need to know about, contact Ardent Guardian today.
