How to file taxes as a Content Creator
No one shows you how to file taxes as a content creator. It’s not as glamourous as taking pretty photos in foreign locales. But it’s part of the job when this becomes part of your job. This is something that I had to learn along the way. Because there are certain things that I didn’t consider as income. If you are an aspiring content creator, keep reading to see the things that I wish I knew when I started.
Content Creators are self-employed
You are considered self-employed and have to pay self employment tax. You have another job and you’re only a content creator part time. This is my case. I still have to pay tax on the income I receive as an independent contractor and as a self-employed person. I don’t just get to keep the money and not pay taxes. The only way you aren’t required to file and pay taxes is if the amount you make per year is under a certain amount. Then that money doesn’t have to be included in your tax return and it’s all your money. Usually it’s a very low amount though.
I’m not going to recommend any specific place to get your taxes done. However there are companies that charge extra when you add self-employment income to your tax return. There was a tax company I used for years before I started blogging. But once I was filing taxes as a content creator, I would be charged extra. So I changed the tax company I was using. Look out for those type of fees when you’re choosing where to get your taxes done or what software to use if you do them yourself.
Gifts are income
Did you know that if you receive gifts over a certain amount of money, they are considered income? This will vary from country to country. In the United States if a gift is worth $100 and up it has to be included on your tax return. Items under $100 are not required to be on your tax return.
Sponsorships
When you do a sponsorship for a company they will give you a 1099-NEC form or something similar because you are considered a contracted worker. You’re not an employee of the company. Whether or not they give you this form depends on the amount of the project. If it’s over $600 they will give you one. Even if the amount is under $600 and they don’t give you a form, it still has to be included on your tax return.
Keeping everything in order
It’s hard when you’re starting out to keep all your paperwork in order. You forget what you spent on services towards your business. You forget about certain types of income that you made. I like to keep it old school and keep everything in an Excel spreadsheet. This way I’m able to see right in front of me what my expenses were as well as my income.
These are just some of the things to keep in mind when you file taxes as a content creator. There are also many items you can write-off for your business. I can cover that in a future post if you’re interested.
