Guide to Taxes for Content Creators | April Help Center (2024)

FAQs

Guide to Taxes for Content Creators | April Help Center? ›

Content creators may be considered independent contractors which means they can receive a 1099 rather than a W-2. As an independent contractor, certain expenses can be deducted from your income such as editing software and supplies.

Since you aren't a W-2 employee and no Social Security or Medicare tax is withheld from your paychecks, you'll need to pay the self-employment tax if you earn $400 or more from brand sponsorships. The self-employment tax rate is 15.3% of your self-employment earnings.

If a creator or influencer earns more than $600 from a company or other client, they will receive a 1099-NEC that reports how much income they received as an independent contractor. 1099-NEC income must be included on a tax return for the IRS to determine taxes owed.

Even if you are making a few thousand dollars, you should form an LLC to protect you and add legitimacy to your brand. If you're an influencer or content creator that is making $20,000+ a year from your content, you should form an LLC to better protect yourself and your brand from potential liability.

Many expenses that are directly related to your content creation and promotion can be deducted from your taxable income. From advertising fees to website hosting, there are a slew of tax write-offs that can help lower your tax bill. All of the deductions below will be reported on Schedule C (Form 1040) when you file.

What IRS business code can I use as a content creator? As a content creator, your NAICS business code could likely be: 711510, Independent Artists, Writers, and Performers. 519130, Internet Publishing and Broadcasting and Web Search Portals.

So, can you write off clothes as an influencer? Undoubtedly, you can – but you'll need the proof to get the pudding. In other words, clothing expenses as a business expense for influencers need evidence as an essential purchase. Complying with the IRS is crucial to getting the most out of your tax return.

Subscriptions. One way for creators to generate a consistent income stream is to use subscription models where fans can pay to access exclusive content. One of the most popular platforms to publish subscription content is Patreon — but there are many other ones like Fanfix, Fanvue, Fourthwall, or OnlyFans.

Does 1099 say OnlyFans? ›

By US law, OnlyFans reports any payments made to you on the IRS Form 1099 and sends this form to the IRS. The 1099 form is an information-sharing form that the company is required to send to the IRS showing all payments that creators received.

What tax forms should content creators receive? You should receive a Form 1099-NEC from each partner paying you $600 or more. However, all income, regardless of the amount and whether you receive a 1099-NEC, must be reported on tax returns, including the value of products received, experts warned.

As an OnlyFans creator, you're considered self-employed. This means you're subject to self-employment tax, which covers your contributions to Social Security and Medicare. In addition, you're required to report your earnings from OnlyFans to the Internal Revenue Service (IRS).

To pay your taxes as a freelance artist, you need to fill in Schedule C from your form 1040 for tax return. You also have to make sure that you pay your self-employment tax. When doing your taxes, ensure that you report all income you make, even if you do not receive a 1099-MISC.

You want to get paid as a video creator. You can earn money through ad revenue, sponsorships, merchandise sales, fan funding, or paid subscriptions. Remember to balance monetization with viewer experience. Too many ads, for example, or too much sponsored content can deter them over time.