Tax Season Simplified: A Fun and Easy Guide for Content Creators

Navigating taxes can feel like solving a puzzle without the picture on the box—especially for content creators juggling partnerships, brand deals, and a side hustle (or three). Don’t sweat it! This guide breaks down everything you need to know to crush your taxes in 2024, all while keeping your hard-earned cash where it belongs—in your pocket.

Step ①: Know tour tax basics

If you’re earning money as a content creator, Uncle Sam wants his cut. Here are some need-to-knows:

• Self-Employment: If you're earning money as a creator, you’re likely considered self-employed. That means you’re responsible for your own taxes.

• Self-employment income: Any brand deals, sponsorships, or YouTube revenue? That’s taxable income.

• Income Tax: The tax the government takes from your earnings. Everyone pays this, including creators.

• National Insurance: In addition to income tax, you may need to pay for social security and health benefits.

• UTR (Unique Taxpayer Reference): This number is like your tax ID. You’ll need it when filing.

• VAT (Value Added Tax): If you’re making over a certain threshold, you may need to register for VAT and charge it on your services or products.

• Tax brackets: Your federal income tax rate depends on how much you make. Add in state taxes, and the math gets real fast.

• IRA (Individual Retirement Account) is a type of savings account designed to help you save for retirement with tax benefits.

What Will Be Taxed?

Basically, any income you earn as a content creator is taxable. This includes:

• Monetary Payments: Revenue from brand partnerships, sponsored posts, ads, etc.

• Gifts & Products: Even free products or services sent to you for promotion are taxable, based on their fair market value. For example, if a brand sends you a $100 handbag, that’s $100 added to your taxable income.

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EXAMPLE Let’s Break Down Earnings

Let’s say you earned $50,000 in a year as a content creator. Here's how things might look:

➡️ LLC (default tax status for self-employed creators):

→ Income Tax: Depending on your tax bracket, let’s say it’s around 20%.

20% on $50,000 = approx. $10,000 in taxes

→ Self-Employment Tax: This covers Social Security and Medicare, which is 15.3% of your net income.

15.3% on $50,000 = $7,650.

In total, you will be paying approximately $17,650 for the year in taxes.

Important note: If you earned gifts worth $1,000 (like products for review), you’ll need to add this to your income for tax purposes. So, your total taxable income would be $51,000 instead of $50,000.

➡️ S Corp (if you’ve elected S Corp status):

With an S Corp, you split your income into a reasonable salary and owner distributions. You’ll only pay self-employment tax on your salary portion, which can reduce your overall tax burden.

Let’s say you pay yourself a salary of $30,000 and take $20,000 as distributions:

→ Income Tax: Still around 20% on the full $50,000.

20% on $50,000 = approx. $10,000 in taxes

→ Self-Employment Tax: Only applies to your salary, not distributions.

15.3% on $30,000 = $4,590.

💰 Total taxes: approx. $14,590 for the year.

In summary:

• LLC? Save around 35% of your gross earnings for taxes.

• S Corp? You’ll need about 20%, but make sure you’re paying yourself a reasonable salary to avoid IRS issues.

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Step ②: Track your expenses

Every time you invest in your work—whether it’s new ring lights or Canva Pro—you’re building up tax deductions. Here’s what you can claim:

What Items Can I Deduct (or Not)?

Deductible Items:

• Equipment: Cameras, mics, laptops, lighting equipment.

• Software & subscriptions: Editing tools & apps, design tools, music licensing, or cloud storage.

• Home office: Claim the square footage you use exclusively for work.

• Internet & phone: A portion of your bills used for work.

• Office Supplies: Pens, notebooks, printer ink—the basics.

• Business Meals: Meals during client meetings or collaborations.

• Mileage: Driving to photoshoots or business meetings.

• Travel: Flights, lodging, and meals for business trips.

Deductible Items You Might Not Know:

• Props and Costumes: Items purchased specifically for content creation, like outfits or decorations.

• Workspace Improvements: Paint, furniture, or decor for a dedicated office space.

• Education and Training: Courses, certifications, or books related to improving your craft.

• Professional Services: Fees for accountants, lawyers, or consultants.

• Advertising: Costs for promoting your content, such as paid ads on Instagram or TikTok.

• Gifts for Clients: Small tokens of appreciation for collaborators (under $25 per person per year).

• Bank and Payment Processing Fees: Charges from platforms like PayPal, Stripe, or Venmo for receiving payments.

• Insurance: Policies for your business or equipment.

• Subscriptions: Relevant ones like industry magazines or premium app features.

• Health Insurance: If self-employed, you may deduct premiums.

Non-Deductible Items:

• Personal Expenses: Your Netflix subscription or personal Spotify account.

• Commute Costs: Driving to a regular office doesn’t count.

• Clothing: Unless it’s a uniform or costume you can’t wear off-duty.

Tips to make this process easier:

1. When in doubt, ask: Is this expense both ordinary (common in your industry) and necessary (helpful for your business)? If yes, it’s likely deductible.

2. Keep receipts and consider using apps like QuickBooks or Wave to track expenses.

3. Separate Accounts: Keep your business and personal finances separate by having two different bank cards and bank accounts. This makes it easier to track business expenses and deductions.

We created this checklist to help you fill out your tax form and make sure you don’t miss a thing!

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Tax Write-Offs Checklist for Content Creators

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Step ③: Max out on tax-saving strategies

The end of the year is prime time for tax planning. Here’s how to save big:

□ Solo 401(k)*: If you’re self-employed, contribute up to $69,000.

□ Backdoor Roth IRA**: Too much income to qualify for a Roth IRA? Use this legal workaround.

□ Prepay expenses: Reduce taxable income by prepaying for next year’s business costs.

□ Charitable giving: Donate to causes you care about and snag a deduction.

□ Investment loss harvesting: Sell underperforming assets to offset capital gains.

*A Solo 401(k) is a retirement savings plan designed for self-employed individuals and small business owners with no employees. It allows you to contribute both as an employer and an employee. For 2024, you can contribute up to $69,000 ($76,500 if you're 50 or older), including both your employee deferral and employer contribution. The employee contribution limit is $22,500 ($30,000 if 50+), and the employer can add up to 25% of net earnings, up to the total limit. It's a great way to save for retirement while reducing taxable income.

**A Roth IRA allows your savings to grow tax-free, but there are income limits that prevent high earners from contributing directly. The Backdoor Roth IRA is a legal method for those who exceed those income limits. You contribute to a regular IRA first (which has no income limit), then transfer the funds into a Roth IRA. This lets you enjoy the benefits of tax-free growth without being restricted by income limits.

Step ④: Paying my taxes timelines

Staying on top of tax deadlines is essential to avoid penalties, reduce stress, and keep your business running smoothly. Here's what you need to know about the key filing timelines:

Beneficial Ownership Information Report (BOIR)

Starting January 1, 2025, most businesses will be required to file the Beneficial Ownership Information Report with the Financial Crimes Enforcement Network (FinCEN).

This report is part of a broader effort to combat money laundering and improve transparency around business ownership. If your business is registered as an LLC, corporation, or limited partnership, you’ll likely need to file this report annually to disclose key details about your company’s owners and decision-makers.

Quarterly Estimated Taxes

If you’re self-employed or running a business, taxes aren’t just a once-a-year thing. The IRS wants its cut as you earn throughout the year, which means making quarterly estimated tax payments. Skipping these payments could result in a big surprise tax bill — plus penalties — at the end of the year.

Missing these deadlines could result in penalties and interest fees, so it’s important to mark your calendar or automate your payments to stay on track.

How do I pay my quarterly taxes?

There are several ways to pay:

• IRS Direct Pay – Pay directly from your bank account for free.

• Electronic Federal Tax Payment System (EFTPS) – A secure system set up by the government to make federal tax payments.

• Check or money order – If you prefer to mail your payment, you can send a check along with your Form 1040-ES voucher.

Tools of the trade

Managing your finances doesn’t have to be stressful. These tools make it easier to track your income, expenses, and taxes — so you can focus more on creating content and less on spreadsheets.

QuickBooks Self-Employed

A go-to tool for freelancers and creators, QuickBooks helps you:

• Automatically track expenses

• Separate personal and business spending

• Calculate quarterly tax payments

• Sync with TurboTax for easy filing

Revolut Business

Looking for a modern, digital-first bank? Revolut Business is a great option for creators who need:

• Separate business accounts to manage income and expenses

• Multi-currency accounts if you work with international brands

• Virtual cards for online spending

• Real-time expense tracking and budgeting tools

Revolut also has an option to issue invoices directly through the app and automate expense reports, making it perfect for creators who want a low-maintenance solution.

Bench Accounting

If you’d prefer someone to handle your books for you, Bench is a great solution. They offer:

• A dedicated bookkeeper to manage your finances

• Monthly financial reports to stay organized

• Tax filing support to make year-end easier

IRS Direct Pay & EFTPS

To stay on top of quarterly estimated taxes, you’ll need to pay the IRS throughout the year. These two tools make it easy:

• IRS Direct Pay: Pay taxes directly from your bank account — fast and secure.

• EFTPS (Electronic Federal Tax Payment System): Schedule future tax payments.

Wave Accounting (Free)

Wave is a free, easy-to-use accounting software for small businesses and creators. It offers:

• Invoicing

• Expense tracking

• Payment processing

FAQs

• What happens if you skip it?

  Failing to submit the BOIR could result in penalties of up to $500 per day and even criminal charges. It’s better to file early to avoid issues.

• Why do I need to make quarterly payments?

  Most employees have taxes automatically withheld from their paycheck. But as a business owner, freelancer, or contractor, that responsibility falls on you. Quarterly estimated payments ensure you're paying enough tax on your income to avoid underpayment penalties.

• How do I calculate my payments?

  To figure out how much you owe each quarter, you’ll need to estimate your expected income, deductions, and tax credits for the year. Use the IRS Form 1040-ES as a guide, or make it easy by using tax software that can handle the calculations for you.

  Your goal is to pay at least 90% of your total tax liability by the time you file your annual return. If you’re unsure about how much to pay, it’s always safer to overestimate to avoid penalties.

• Do I really need an accountant?

  If you’re just starting, tax software can work. But as your income grows, an accountant can save you $$$ by maximizing deductions.

• Can I write off that latte I sipped during a TikTok brainstorm?

  Maybe! If it’s directly tied to your business (e.g., meeting with a collaborator), it might qualify.

• Do I need to earn a minimum to pay taxes?

  Yes. If you earn $400 or more in self-employment income, you’re required to file taxes. For regular income, thresholds vary based on filing status and age—check the IRS guidelines.

• Where do I sign up as a freelancer?

  To register as self-employed and obtain an Employer Identification Number (EIN) through the IRS, you can easily apply online for free. The EIN is crucial for tax reporting and protects your personal Social Security number, especially when working with third-party payments or filing tax forms like the W-9.

  Here’s how you can register and apply for an EIN:

  1. Register as Self-Employed with Your State: Depending on your state, you may need to register your business, especially if you’re operating as a sole proprietor or an LLC. Check with your state's website for the specific registration process and forms.

  2. Apply for an EIN: You can apply for an EIN directly from the IRS website here. The process involves:

     • Selecting your business entity type (e.g., sole proprietorship, LLC, corporation).

     • Providing the required details about your business.

     • Submitting your application online, and you will receive your EIN immediately upon approval.

  Having an EIN is beneficial as it separates your personal and business finances and is often required by financial institutions, clients, or vendors when processing payments or taxes. Find more information on the IRS official website: https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

• What happens if I don’t have any income in a month?

  No worries! You’re only taxed on your total annual income. Use slower months to organize your records and plan ahead for busier seasons.