This article was updated for Tax Year 2023, last edited on January 22nd, 2024.
Highlights
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.
As an online content creator such as a blogger or social media influencer, you may be considered an independent contractor. Per the IRS, if you are an independent contractor, then you are self-employed. As an independent contractor, your income will be reported on a 1099 rather than a W-2.
Note: If you need to pay estimated taxes to the IRS, you may also need to pay estimated taxes at the state level. Refer here for more information.
What is the 1099? Are there different types?
1099-NEC: You can expect to receive this from a business that paid you $600 or more
1099-K: You can expect to receive this if you receive payments through online payment services
Even if for some reason you do not receive a 1099, the IRS expects you to report all of your income.
What IRS business code can I use as a content creator?
As a content creator, your NAICS business code could likely be:
If neither code fits your business services, you can find your NAICS code here.
Do I have to pay taxes on gifts received from my followers?
Per the IRS any gift may be a taxable gift. The amount of income is determined by the fair market value of the gift at the time you received it.
There are many exceptions to this rule and the following gifts are not taxable gifts:
Gifts that are not more than the annual exclusion for the calendar year.
Tuition or medical expenses you pay for someone (the educational and medical exclusions).
Gifts to your spouse.
Gifts to a political organization for its use.
Are items received by brands considered taxable income?
You may receive products from companies to gain exposure. If you are expected to perform a service in exchange for the gift, then it may be taxable. There are exceptions and every situation should be evaluated on a case-by-case basis.
What deductions are there for mobile phones?
A smartphone can be deducted, but only the expenses related to your business use. If you choose to use your personal phone, it is recommended that you get an itemized phone bill so you can accurately measure your personal versus business use.
Deductions related to a phone can include the cost of the phone, billing charges, and any related accessories such as chargers and cradles.
What are some additional deductions?
The IRS's most basic guideline is that to be deductible, the business expense must be ordinary and necessary.
Ordinary means that it’s common for other drivers or those in your industry to deduct these items.
Necessary means that it’s needed for the success of your business.
Common deductions for content creators are listed below, but are not limited to the following:
Video or picture editing software
Electronics such as a laptop, cameras, or similar devices
Website domain and hosting fees
Emailing services
Independent contractor costs (such as virtual assistant, social media manager and etc)
Advertising/marketing costs
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