Tax deductions for creators: What you can (and can’t) write off

Making money as a creator—whether you’re posting fashion hauls, sharing recipes, or streaming games—comes with perks and responsibilities.

Who doesn’t love the independence of creating your own path so you can follow your passion? But between the challenges of learning the tech and techniques to land your content, you’ve got one big responsibility looming: Taxes.

And it’s not just taxes. It’s taxes with a new twist. Because you’re out there making money for yourself, the IRS sees you as self-employed. That changes the forms you file, what you pay taxes on, and when you pay them.

The good news: the IRS allows you to deduct business expenses, which can be a big money saver. The catch is that not everything is going to fly as a deduction. To count, the IRS rules say the expenses must be “ordinary and necessary” for your business.

We’ll cover a bit about the tax tasks and general deductions for most creators. Then dive into specifics for fashion influencers, food bloggers, and gamers, including watchouts and more.

How taxes are different for creators

There are three big ways that taxes are different if you’re a self-employed creator:

• covering self-employment taxes
• paying taxes quarterly
• determining your net profit or loss (which is where the expenses and deductions come in) on Schedule C.  

When you’re working as a W-2 employee, your employer withholds taxes and even chips in for Social Security and Medicare (FICA taxes). You pay 7.65%, they match 7.65%, and you’re done. But when you’re self-employed, you pay both halves of FICA taxes totaling 15.3% of your net earnings.

And since no one’s withholding taxes from your paycheck for you, you’ll need to make quarterly estimated tax payments. These are due April 15, June 15, September 15, and January 15. This not only makes sure you pay as you earn, it also keeps you from getting behind on taxes so you avoid penalties.

Lastly, you’ll generally use a special form called Schedule C to determine if you’ve made a profit or not. It’s here that many of your content related expenses could show up as a business deduction.

What is a deduction and why does it matter?

Plain and simple, a deduction is a tax break that reduces your taxable income. The lower your taxable income, the less tax you pay.

For creators, deductions apply to costs that are “ordinary and necessary” for your business, like equipment, software, and even the portion of your home used as an office.

Having that rule in mind might actually help you uncover some deductions unique to you and your income streams. So, what’s needed and the norm for your content?  Let’s say you offer courses through a special platform. If that’s the case, then you can deduct the fees you pay to use the platform.

[Banner: Earn like a creator. File like a pro. Get help for your creator taxes today. File online (link). Make an appointment (link).  

Business deductions for creators: Example expenses

Below is a starter list of many of the expenses that could be a deduction. Take note: If the expense is something you use in your personal life (ex. your phone), only part of it can be deducted.

And no matter if you file on your own with our online tax prep for creators or with a tax pro, we make it easy to claim all your unique creator expenses.

• Business account bank fees: Monthly service charges, wire transfer fees, and payment processing costs
• Business insurance: Liability coverage for your creator business
• Business meals: Up to 50% of meals tied to business (think lunch with a brand rep)
• Clothing and makeup: Only if exclusive to your business (details below)
• Home office space: If you have a dedicated space in your home for creating, you can deduct rent/mortgage, utilities, and internet based on square footage (but be careful, you can’t use that space for anything else)
• Internet and phone bills: This is one where you’d need to figure out how much is used for your personal life and work if you’re using it for both
• Laptop and/or phone: If used for creating content, you can deduct the cost or depreciate it. Again, it may need to be split for personal and business use
• Legal services: Incorporation fees, contracts with brands, trademark filings, etc.
• Lighting gear: Ring lights, key lights, softboxes, RGB background lighting
• Marketing: Website hosting, ads, and promotional material
• Office supplies: Ink, paper, printer, etc.
• Platform fees: TikTok Creator Fund processing fees, YouTube membership cuts
• Professional services: Accountants, marketing consultants
• Professional development: Courses, conferences, memberships
• Software: Editing tools, design programs, analytics platforms
• Studio equipment: Cameras, microphones, tripods, props, backdrops, acoustic foam/panels
• Studio rental: Podcast or photo shoot spaces
• Tax prep services: Yes, paying H&R Block counts!
• Trade events/seminars: Tickets and travel.
• Travel & car expenses: Flights, hotels, mileage for business trips. (see the Watchouts below)

Watchouts for travel and car deductions

If your trip is 100% business, those expenses are likely deductible. The tricky part? Mixing work and play.

• Driving to a shoot in town: Mileage may be deductible if your home is your main office. Personal errands? Nope, these miles wouldn’t count.
• Flying to a conference or brand event: Usually deductible because it’s work-related. But if you tack on a weekend spa getaway after filming your content, you’ll need to split up the costs. Remember the business portion counts.
• Hotels and rental cars: Same rule—deduct the days tied to work, not personal time.

Bottom line: If the main purpose of your trip is business, you’re generally good. If it’s mostly personal, only expenses directly tied to creating content qualify. If it’s all personal expenses, then you can’t write it off. Keep receipts and notes to back it up and show that it’s a true business expense.

Tips for tracking expenses and tackling your taxes

Here’s one more reminder that documentation is everything. Life moves fast when you’re juggling all of the tasks that come with being a content creator.

Take it from us, you want to track expenses in real time. The IRS won’t ask for these records up front, but if something doesn’t look right, it could lead to an audit. At that point, your receipts and records will be critical.

What to start doing right now

• Separate finances: Having a stand-alone bank account can streamline things a lot.
• Track every receipt: Whether you’re doing this digitally or with old school paper just be sure it’s easy to find when it comes time to file. It’s also helpful to look at what you spend throughout the year as it can help
• Categorize expenses: Equipment, travel, marketing – You get the picture.
• Log business purpose: Note why each expense was necessary and when it was used.

Earn like a creator. File like a pro.

Navigating taxes as a creator can get complex. From reporting ad revenue to deducting video editing software, Block is here to make the complex easy so you can get a handle on your creator taxes.  

Get started today! File on your own online or File with a tax pro.