You are finally making money as an influencer! That’s FANTASTIC. Now comes the not-so-pleasant news, it’s time to start paying taxes. Influencers and streamers, like everyone else, need to pay taxes. The only difference is because you are self-employed, you will usually have to use different forms, deductions, and tax codes than those that work the traditional 9-5.
However, due to these differences, there are usually countless questions regarding influencers and paying taxes. That is why we have prepared the following blog post. In it, we will go over some important topics related to taxes that, as an influencer or streamer, you should know about.
Do Influencers and Streamers Pay Taxes on Their Income?
As an influencer or a streamer, if you make money off your content, then the Internal Revenue Service (IRS) considers you self-employed, and as a result, you will have to pay federal income taxes on the money you bring in. In addition, you will also need to pay state income taxes unless you live in a state without state income taxes.
What Counts as Income as an Influencer or Streamer?
If you are an influencer or a streamer, there are actually several different types of revenue sources that will be subject to taxes, including money made from:
- Creating content
- Sponsored posts
- Affiliate marketing commission
- Free products
- Brand ambassador roles
However, if you want further information regarding this process, consider discussing them with an experienced accounting and finance professional. These professionals can determine which of your income will be taxed and whether there are write-offs you can take advantage of.
What About Gifts? Are They Taxed?
Typically, if you receive a gift, such as a free trip or product, as compensation for your work, it will be treated as income, and you will need to pay taxes on the value of the gift. However, there are exceptions to this rule. For instance, if you are sent a product to review, and the total value of the product is less than $100, then you are not required to include the value of those items on your tax return.
Yet, to be safe, it is usually a good idea to keep a detailed record of all the gifts, products, and trips you receive throughout the year and discuss these things with a knowledgeable accounting or financial professional who can determine what taxes you will be paying.
Having Issues With Your Taxes? Contact an Influencer Tax Professional Today
At Ardent Guardian, we are here to make your life easier and provide solutions that work for you. When you hire our team, we can not only take on all your financial planning needs but also assist you with your accounting issues, tax preparation, and even your legal legwork. How? Because unlike most CPAs or accounting firms, at Ardent Guardian, we are licensed in both the financial and legal sectors as a CPA, Certified Financial Planner, and lawyer, allowing you to have the help you need no matter what types of problems you are experiencing.
That is why if you want further information about filing taxes as an influencer, contact Ardent Guardian online or call us at 703-592-6774 to schedule a consultation.