Tax essentials for fashion and beauty creators

Sharing your personal sense of style and love of all things beauty and fashion has helped you build a community. But if your content is turning into actual income? That’s a major moment. Whether you’re breaking down seasonal trends, filming GRWM tutorials, or reviewing the newest palettes, your creativity is building a real business.

And once money enters the picture, the IRS sees your fashion or beauty influence as more than a hobby. That means taxes may now play a major role in your creator journey.

Check out our Creator tax guide and Creator tax cheat sheet and checklist for more valuable tips.

How the IRS sees your style and beauty content work

If you’re earning money from content—through brand partnerships, UGC, affiliate income, platform payouts, sponsorships or other streams—the IRS may consider you self‑employed. That may change how taxes work for you.

Unlike a traditional job where your employer automatically withholds taxes, self‑employed creators must handle many things themselves including:

• Self‑employment tax (15.3%) for Social Security and Medicare. You’ll pay the employee and employer halves of this tax. Don’t worry, you can deduct half as a deduction.
• Quarterly estimated taxes due April 15, June 15, September 15, and January 15

At tax time, you’ll use Schedule C to list your income and business expenses. That’s where deductions come in—lowering your taxable income and helping you keep more of what you earn.

Beauty and fashion creators often juggle multiple income streams, irregular payouts, and fast‑moving collaborations. That can make taxes feel complicated. But the good news? H&R Block understands creator taxes, including the nuances of fashion and makeup work. You don’t have to navigate it alone.

UGC, gifted items, and collabs: Tax impacts

Influencers in fashion and beauty frequently receive products—sometimes as paid partnerships, sometimes as gifts tied to deliverables. The distinction matters.

Here’s how it breaks down:

• If you purchased the item yourself: If you buy something solely to create content, its cost may qualify as a business deduction as long as it’s “ordinary and necessary” for your work.

Example: You buy a specific pair of earrings exclusively to style an editorial video. If you wouldn’t use them personally, the item may meet the IRS criteria.

• If a brand sends you a product in exchange for content: This is considered taxable income. Even if no money changes hands, the fair market value of the product counts as compensation.
• If a brand simply gifts something with no required post: It might not be income—but if there’s any expectation (even informal) to post, review, mention, or create, the IRS typically views it as taxable.

Do influencers pay taxes on gifts?

If the “gift” comes with the expectation that you post content, it’s considered compensation and is taxable. The expectation of content can be implied too—meaning it doesn’t need to come in writing. If there’s no expectation of content, then it would not be taxable.

Deductions for fashion & makeup influencers

Below is a starter list of many of the expenses that could be a deduction. Keep in mind: If the expense is also something you use in your personal life (ex. your phone), only part of it can be deducted. See an expanded list of creator deductions.

• Lighting gear: Ring lights, key lights, softboxes, RGB background lighting
• Legal services: Incorporation fees, contracts with brands, trademark filings, etc.
• Home office space: If you have a dedicated space for creating, you can deduct rent/mortgage, utilities, and internet based on square footage
• Software: Editing tools, design programs, analytics platforms
• Trade events/seminars: Tickets and travel.

Specific to fashion and beauty: Wardrobe and make-up write‑offs

The big question on everyone’s mind is clothing. It’s part of your style and who you are as a content creator, right? But that doesn’t mean the IRS would agree it’s a legit business expense.

Before we dive into examples, here’s the bottom line: for clothing, shoes, or makeup to qualify as a business expense, it needs to check these boxes:

• Exclusivity – You’re wearing the clothing only to make content or during work‑related events.
• Necessity – The item is essential for a specific shoot, event, or partnership.
• Frequency – You use it regularly for business purposes, not just once.

If an item misses one or more of these, then it’s probably not deductible.

When your fit could make the cut

Here are a few places that could fit the exclusive, necessary, and frequency requirements.

• Themed threads – Think costumes or character outfits for a Halloween event or a loud, funky polyester outfit for 70s throwback content.
• Partnership picks – When a brand deal requires you to wear their pieces.
• Spotlight styles – Red‑carpet looks or press appearance outfits.
• Professional use only products – Makeup purchased solely for content creation or professional beauty tools.

Buys that don’t pass the IRS check

Just wearing clothing or makeup in content doesn’t make it deductible. Examples include everyday makeup, clothing worn both in videos and in daily life and haul items that become personal wardrobe pieces

Documentation is essential. Save receipts and note the business purpose for every purchase.

Getting a handle on tax time: Forms and tips

Here’s what to watch for in your in-box or mail box at tax time:

• 1099‑NEC for sponsor or partner payments (if over $600)
• 1099‑K for platform payouts (if you have more than $20,000 in payments and 200 transactions)

You’ll report everything on Schedule C and file that along with your Form 1040.

Tips for staying organized

Here are our top tips that can save you major headaches at tax time.

• Receipt tracking: Whether digital or physical, keep documentation for every business purchase.
• Dedicated banking: Consider opening a business bank account if you haven’t already.

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 or File with a tax pro.