How can YouTubers Pay Taxes?
Should YouTubers pay their taxes? YES.
In fact YouTube influencers are required to show separate 1099 forms for every source of income.
Since most influencers are considered freelancers, they are hence considered self employed.
They must then be taxed with reporting their income taxes using the right forms and proper schedules.
What Income Sources Should I Report if I am a YouTuber
- Affiliate link commissions
- Ad revenue (i.e. Google Adsense payments from YouTube)
- Brand sponsorships
- Merch revenue
- Collaboration product earnings
- Products and travel gifted in exchange for promotional posts
- Wait, Really? Do YouTubers Pay Taxes On Gifts? That’s Not Fair!
How Can I File YouTube Taxes?
1. Choose the type of business you operate
Most YouTubers are sole proprietors in their entrepreneurship ways, but you can also choose to operate using LLC or partnership. Remember, you may need to consult a tax expert to make sure you are doing things right.
2. Create pay stubs and track your income
Pay stubs are some of the best ways you can track your income. You want everything to be organized in tax time. This is why you must keep receipts and proof of income.
In fact, you can create a pay stub here using our Striped pay stub maker.
3. Create quarterly tax payments.
Make sure you pay your taxes. You have the option to pay yearly or quarterly.
4. Take advantage of YouTube tax deductions
Here is the importance of keeping your receipts so that you can keep track of tax deductions in a very accurate way.
Tax Forms for YouTubers
You get a form 1099-NEC from each customer you partnered with who has paid you more than $600. For projects under $600, they should still be reported as income even if you didn't get a form 1099-NEC.
What are Tax Write-Offs for YouTubers?
The rule of thumb is that the expenses have to be necessary and paramount to your work as an influencer.
- Computers, tablets, and smartphones
- Cameras and other filming equipment
- Editing software
- Trademark and copyright fees
- Stock photography subscriptions
- Advertising and marketing costs
- Website
- Emailing service
- Home office space and supplies
- Travel
- Mileage
How Can Influencers make Tax Filing much Faster
Creating pay stubs if you haven't already makes it easier to track your income and how many deductions you can avail.
Through your check stubs and through accounting for allowable tax deductions you make taxes for influencers much faster and you can focus on doing what you love.
Create your own stubs now through our pay stub generator:
