Tax Write-Offs for Influencers: What You Need to Know
The Gist
Whether it’s a side hustle or a full-time gig, being an online influencer has become a lucrative option for content creators.
The freedom of working as an online influencer comes with benefits and drawbacks. While you make your own hours and pick the clients you want, if you don’t have management or representation, you might be spending (unpaid) hours on contract-related back and forth.
As an influencer, it’s important to track your income and expenses, make quarterly estimated tax payments, and take every tax write-off available to maximize your tax savings.
In This Article
In Short
Whether you’re a YouTuber, TikToker, LinkedIn thought leader, Instagram model, or have a steady stream of income from making online content for brands — congratulations, you’re an influencer. This exciting class of independent work has many benefits: You get to pick the gigs and brands you’ll work with, manage your own contacts, and in many ways, be your own boss.
But being your own boss also means being your own business. Because you’re the talent, videographer, booking agent, and manager, you may lose track of key details, like income and expenses. Any lapse in record keeping could severely impact the taxes you owe and cost you the right to claim certain tax deductions for influencers.
But don’t stress — keep reading to learn about some common business expenses or tax deductions for influencers that could lead to big tax savings!
For additional peace of mind while building your influencer business, the Stride app helps you track expenses, mileage, and more — all of which you can deduct from your tax bill to save money. This easy-to-use app can save you time and headaches when tax season rolls around — meaning you can focus on your next viral video.
Are There Any Influencer Tax Write-Offs?
As we mentioned above, there are actually a lot of tax deductions for influencers, so it’s important to know the intricacies and track every expense possible — you never know what might help lower your tax liability.
Tax deductions, or write-offs, are business-related expenses that are subtracted from your gross income (also known as your total or pre-tax income). For example, if you earned $35,000 as an online influencer in a year, but paid $7,000 in equipment, subscriptions, and other expenses to do your work, you only owe income taxes on that $28,000 in net income, sometimes called “taxable income.”
When it comes to influencer tax write-offs, there are more than you’d imagine. Certain thresholds for reporting can change from year to year, especially as the influencer industry gains more mainstream traction.
For the 2022 tax year, the threshold for reporting 1099-K income (for instance from Venmo or Paypal) was $20,000 — that’s a healthy side hustle. But barring any further legislation, starting with the 2023 tax year you’ll be on the hook for reporting any 1099-K income over $600.
Some common tax deductions for influencers include:
📷 Cameras, smartphones, and microphones
💻 Computers and other office equipment
📺 Subscription services like Netflix or Peacock (for instance, if you are a TV or movie reviewer)
💾 Any software you use to create your content
📣 Online advertising for your business or services
📹 Payments to assistants, videographers, or collaborators
🌐 Website and hosting fees
🛒 Product purchases (if you bought it specifically to review for your content)
👚 Clothing or wardrobe
🏦 Bank or transfer fees
💰 Student loan interest
🍕 Meals and entertainment (during work-related travel)
✈️ Transportation and lodging for work-related travel (like if you pivot to travel-related content)
💸 Costs associated with producing and shipping merch
🏥 Self-employed health insurance payments
🚗 Car purchase and depreciation (if you use a car for work-related travel or commuting)
🏠 Certain household expenses, like internet service
If that seems like a lot to keep up with, that’s because it is! That’s why it’s important to keep track of everything you spend money on related to your content. You never know what new tax deductions for influencers might become available with changes in federal, state, or local tax policy, so err on the side of over-documenting your work-related expenses.
Can Influencers Write Off Clothes?
Great question! And the answer is yes — in a lot of cases, influencers can write off clothes that they purchased to wear or review in their content.
Some common clothes-related influencer tax write-offs include:
Outfits, shoes, and accessories that you wear in your fashion content
Workout clothes, sneakers, and equipment for fitness content
Lingerie (if you are a 1099 OnlyFans creator or model)
Beauty products and tools, especially if you’re reviewing them in your content
Clothing purchased for professional public events or meetings (ball gown for a red carpet, yes, dress for your bestie’s wedding, no)
If you’re not sure, we’d recommend having a tax professional handle your return — they’ll know for sure which influencer tax write-offs are applicable to your situation.
What Paperwork Do I Need to File My Taxes as an Influencer?
If your employment situation becomes too complicated to keep track of, don’t hesitate to hire a tax professional to file your return. In fact, the amount you pay for tax preparation can be written off your taxable income for the following year!
Even if you have a professional handle your taxes, you’re still on the hook for tracking your income and expenses unless you have a full-time accountant (okay, celebrity?).
Some clients or employers will send you a 1099 form. Hang on to all of these! A duplicate of every 1099 gets sent to the IRS, so losing one could open you up to an audit down the road. If you’re the disorganized type, consider taking a photo or making a copy of each 1099 as it arrives and keeping them in a folder on your computer.
If you choose to prepare your own taxes, Schedule C (this may vary for state and local taxes) is the form where you report all your earnings and expenses as a sole proprietor. Read all the instructions and options carefully — as we mentioned above, some of the tax deductions for influencers can be surprising!
The Takeaway
Whether you’re an influencer with an established following or a content creator just starting out, there’s a lot to know before you jump in. As soon as you start earning money from your content, you’ll want to start tracking your income and expenses using the Stride app to save time and money on taxes.