40 Tax Write-Offs for Content Creators (2024) (2024)

FAQs

How do tax write-offs work for content creators? ›

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.

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.

Basically, if you're a creator who uses a car for business purposes, you're eligible to deduct vehicle expenses (and sometimes even the cost of the car itself!). There are a couple ways to creators can calculate the vehicle tax deduction: the standard mileage rate and actual expenses method.

To get tax deductions on influencer clothes, you'll need to show the IRS that you have an honest profit motive. Basically, you'll have to prove that you're making money with these clothes as opposed to losing it. This will help distinguish your business from a hobby. You can also include a few other distinctions.

At a high level, you can write off things you buy that are used to create or promote your content. For example, a food content creator could write off any ingredients they buy for their content.

Income earned from OnlyFans is taxable, just like income from any other source. The amount of tax you'll pay depends on your total income for the year and your filing status, which determines your federal income tax bracket. Additionally, you may be subject to state income taxes depending on where you live.

Some “personal” expenses are actually business expenses

Business expenses need to be both ordinary and necessary to qualify for a deduction, according to the IRS. Those hurdles are easier to clear than you think. Your coffee, meals, phone, watch, car and more may all be considered business expenses that you can deduct.

If you want to create liability protection between your business and your personal assets, an LLC (Limited Liability Corporation) is your best approach. An LLC is simpler than a C-corp (where the owners are taxed separately from the corporation) and for most Creators should do the trick.

You can earn passive income by selling your own products, creating a membership, offering ad space on your blog, and, of course, adding affiliate links. Make sure to choose your niche wisely by doing keyword research and researching your target audience.

You can also deduct qualifying business expenses from your total income, as long as OnlyFans is your main source of income. If your total OnlyFans income was $64,000, and you're eligible to deduct $14,000 in business expenses, you'll only pay OnlyFans tax based on your AGI of $40,000.

Can content creators write off haircuts? ›

Claiming A Haircut Tax Deduction

If your line of work requires you to have a unique hairdo to perform your work, then you can deduct the cost of a haircut. U.S tax courts ruled in Hynes v. Commissioner, you cannot deduct the costs incurred for maintaining a nice appearance.