As a social media influencer or a streamer, you likely have noticed that your income takes a massive hit during tax season. Fortunately, there are legal measures you can take to reduce your taxable income so that tax season won’t be as painful.
What Are Tax Deductions?
A tax deduction refers to a provision that reduces taxable income, which in turn can reduce your income taxes. However, the amount of your deductions will generally depend on the percentage of your business use of a particular type of asset.
What Types of Things Qualify As a Tax Deductible Expense for Social Media Influencers and Streamers
While the expenses you can write off will depend on numerous factors, some of the more common things you can write off as an influencer or streamer include the following:
Home Office Deductions
Home office deductions allow you to write off a percentage of your home expenses if you work from home. This can include a percentage of your rent, property taxes, mortgage interest, and home insurance.
As an influencer or streamer, you can also write off all your marketing expenses, which are the costs associated with the marketing and advertising of your influencing business, such as your sponsored posts.
If you have to travel as an influencer or streamer, the cost of these trips may be deducted.
More importantly, these expenses include not only flight costs but any business travel-related expenses, including the cost of lodging, meals, entertainment, and other transportation expenses.
Phone Bill and Internet
As a streamer or influencer, you may also be able to write off a portion of your phone and internet bills as operating fees.
Business insurance protects influencers and streamers against any unforeseeable costs associated with workplace errors or injuries. If you have this type of insurance, your premiums may be able to be deducted from your taxes.
If you use certain types of office supplies for your business, these supplies can be deducted. This may include printer ink cartridges, paper, pens, pencils, laptops, external hard drives, memory cards, cameras, and other supplies.
Meals and Entertainment Costs
If you are at a work-related conference, some of the costs associated with your meals and entertainment can be deducted. This includes things such as restaurant bills and other types of excursions. However, keep your receipts when it comes to these costs, and remember that the meal or gathering must be with a potential client or business contact to qualify.
In addition to the above expenses, many other costs can also be deducted, including website costs, legal fees, and even student loan interest. However, to better understand these deductions and which ones may apply to your situation, consider reviewing them with a tax professional who can walk you through the process.
Contact Ardent Guardian To Get Help With Your Tax Deductions
At Ardent Guardian, we are licensed in both the financial and legal sectors as a CPA, Certified Financial Planner, and attorney. This means no matter what issues you have, we provide services to help you get ahead and ensure your taxes and finances are in order.
For further information about your taxes or tax deductions, contact Ardent Guardian today or call us at 703-592-6774 to schedule a consultation with our team.