Do TikTok creators pay taxes? Do YouTubers pay taxes?

Maybe you started out on TikTok, YouTube or Instagram just to share your passion, connect with people, or try something new. Then the views started rolling in, brands reached out, and suddenly you’ve got cash coming in.

Fantastic, right? But here’s the thing: when money enters the picture, taxes do too. Don’t worry—we’re not here to kill the vibe. We’ll walk you through what you need to know about Instagram, YouTube and TikTok taxes so you can keep creating without stressing about the IRS.

YouTube, Instagram, and Tiktok taxes: Real income, new tax responsibilities

From afar, some people may think being a creator is easy. But you know and we know: it’s a hustle. You wear a dozen different hats and pour your time and energy into getting it all done. When you start making money on your channels, you’re a legit business owner. And the IRS sees it that way too.

So, what are the tax impacts for TikTokers and other creators?

• Multiple revenue streams and expenses: You may have money coming in from several types of activities and expenses unique to your type of content. All of that factors in to whether you made a profit (or loss).
• Quarterly tax payments: You’re responsible for paying your taxes as you go—even if you’re just making a few thousand dollars. Unlike a W-2 job where taxes come out of each paycheck, this step falls on your shoulders.
• Self-employment taxes: You’ll need to account for self-employment taxes (aka Medicare and Social Security taxes). Typically, employers pay half of this 15.3% tax, and employees pay the other half. When you’re self-employed, you pay both (but you also get to take a deduction that covers half of it).   

What if you’re not yet turning a profit? This fact, along with others, may mean the IRS sees you as having a hobby vs. running a business. Hobbyists still have to report their income (once it’s over $600), but they don’t get to take business deductions.

What income do you need to report?

As a creator, you’re no stranger to maximizing your income streams. These multiple streams help grow your business but can also add layers to your tax complexity. Bottom line: you’ll need to report all your earnings for the tax year on your return.

Here are some common ways you may be getting paid. You may have even more:

• Ad revenue from TikTok or YouTube or other platform monetization (TikTok Shop, TikTok Creator fund, TikTok Diamonds withdrawn as cash)
• Affiliate marketing and commission from product placements
• Appearances
• Brand deals and sponsorships
• Digital courses
• Gifts or freebies (yep, even those gifted collabs count!)
• Memberships/subscriptions
• Merch and products

If it hits your bank account as part of your creator life, it’s probably taxable.

What can TikTokers,YouTubers, and Instagrammers deduct on taxes?

Here’s where things get interesting. You may be able to write off a bunch of stuff, as long as it’s “ordinary and necessary” for your business according to the IRS. 

Let’s start with some universal expenses that could apply to most content creators:

• Bank fees
• Business insurance
• Business meals (up to 50%, including tips and taxes)
• Clothing and make up (*see details below)
• Home office expenses (rent/mortgage, utilities)
• Internet
• Laptop/phone that you use for creating
• Legal services
• Marketing (website hosting)
• Platform fees (TikTok Creator fund processing fees, YouTube channel membership platform cuts)
• Professional services (marketing advisors)
• Professional development (courses you take, association fees, conference fees)
• Software (editing, design, marketing analytics tools)
• Studio equipment (lights, cameras, microphones, tripods, etc.)
• Studio rental or podcast space
• Supplies
• Tax services (Yep, paying H&R Block for help with your creator taxes counts!)
• Trade events/seminars
• Travel/car expenses (*see details below)

Some expenses will be unique to you. That’s where the “ordinary and necessary” comes in. So, for example, a high-end mixer may be a write off if you’re a baker making food related content, but that wouldn’t fly if you’re a fashion influencer.

Deduction details for clothes, make-up and travel

That said, not everything goes—so it’s important to pay attention to the fine print when it comes to clothing, make-up, and travel.  

• Clothing or makeup: There’s no doubt—your look is part of your brand. However, buying items because you use them in content doesn’t mean it’s a deduction. Clothing and make-up that you buy as part of a haul, show off in a video, and then wear in everyday life is generally not a write-off, but there are exceptions.
  •  General deduction criteria: If it’s exclusive (ex. a costume, or red-carpet dress), necessary (ex. branded clothing), clothing you wear frequently (ex. a signature jacket), or things tied to promotions (ex. shoes with an affiliate link),
• Travel for shoots or events: If your travel is purely for work, then your related travel expenses are likely deductible. It’s when you mix business and personal that it gets tricky.
  • Driving to a shooting location in town. You might be able to deduct mileage to and from your home if your home is also your main place of business. Mileage for personal errands? Nope, that wouldn’t make the cut. Learn more about deducting mileage vs. actual car expenses.
  • Flight to a conference or brand event. This would likely be a deduction because it’s tied to your work. But what if you flew to the beach to film videos for your Spring Break OOTD series and spent the rest of the time vacationing?  In this case, you would probably have to allocate expenses between business and personal. If the main purpose of your trip was a vacation, then only expenses directly related to the filming are deductible.  
  • Hotel and rental car. If part of your trip includes personal time, you’ll only be able to deduct the days/usage related to your work.

Pro tip: Receipts, expense tracking and documentation are a must, so you have a good record of everything. If you’re not sure if something counts, you can always ask an expert at H&R Block whether you file with a tax pro or file with H&R Block Online (you can chat with a tax pro directly in the program!).

TikTok tax forms, YouTube tax forms

From day one you’ll encounter various kinds of documentation and paperwork as a creator. Here are some TikTok tax forms or YouTube tax forms you may encounter:

• Form W-9: This is the first form you fill out. It’s the official way to provide your name and Tax Identification number (ex. your SSN) to the platform.
• Form 1099-K: For payment processing. (if you earn enough through platforms like PayPal you’ll receive this form)
• Form 1099-NEC: For non-employee compensation (most creators get this)

Forms you send to the IRS as part of paying taxes and filing your return.

• Form 1040-ES: For paying quarterly estimated taxes throughout the year
• Form 1040: For reporting your income
• Schedule C: For calculating your profit and losses and including with your tax return
• Schedule SE: For calculating your self-employment tax and including with your tax return

Platforms are only required to send 1099 forms if you have a certain level of activity.  If you don’t receive a form, you’ll still need to report the income you received. (Psst! Here’s another reminder to keep good records.)

How to find your TikTok tax form?
How you get the form depends on when it’s used:

• W9 forms – You’ll need to complete this before you start receiving payments.
  • If you’re a creator, you’ll find this form in your wallet.
  • If you are a TikTok Shop seller, look in the account settings in your TikTok Shop Seller Center.
• 1099 forms – These are sent to you by mail or digitally by January 31 each year. Keep these forms with your tax records.

How do taxes work for TikTokers, YouTubers, and Instagrammers?

For many, taxes are a once-a-year deal. When you make money as a TikTok or YouTube creator, you’ll need to pay taxes four times a year with estimated tax payments. Then, when it’s time to file your annual return (generally by April 15), you’ll have a few extra steps.

Quarterly estimated tax payments: Do you need to pay them?

The answer is yes, if you expect to owe $1,000 or more in taxes for the year. These payments help keep you current on your taxes (since you’re not paying as you go with paycheck withholding). Also, your estimate should take self-employment taxes into account.

Each quarter, you’ll pay estimated taxes using Form 1040-ES. However, the amount you pay isn’t set in stone as it’s based on your income for the year. One quick method is to use what you owed in taxes for the previous year and divide that by four—adjusting for increases or drops in your income.

But if it’s your first year working as a creator, you wouldn’t want to use taxes from previous employment to figure this out. Check out our post on how to calculate estimated taxes for help.

Heads up: If you overpay, you’ll get a refund. If you underpay, you might owe a penalty—so it’s worth getting it right.

Don’t forget state and local taxes

If you earn money in different states (like traveling for a brand appearance), you might have to file in more than one state. Each state has its own rules, so check before you file.

Tips to make Instagram, YouTube & TikTok taxes less stressful

Yes, there’s a lot to know and a lot to do. But for real, a little bit of planning can go a long way where taxes are concerned. And having the right resources on your side can make all the difference.

• Keep digital/paper copies of your receipts—for all your expenses. This includes driving logs if you plan to deduct mileage. The IRS recommends you do this in real time for accuracy.
• Set up a separate bank account for your creator income. One way you could track your self-employment expenses is by using the custom reports feature available with the Spruce mobile banking app (built by H&R Block).  
• Save for taxes all year. When you receive income, earmark 25-30% for taxes. This will make coming up with taxes due for quarterly payments much easier. With the Spruce mobile banking app, you can set aside money in a separate saving goal in just a few steps. Spruce has no minimum balance requirements, no sign-up fees, and no monthly fees. And, the money in your savings can earn high-yield interest.
• Work with a trusted tax provider that understands how you make money. No matter which way you file taxes with H&R Block, we’ll help you get your maximum refund.

How H&R Block can help

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

TikTok Shop Sellers: FAQs

What is the tax information required for TikTok Shop sellers?

When you sign up as a TikTok Shop seller, you’ll need to provide details for a Form W-9.

This includes:

• Your legal name (or business name if applicable)
• Address
• Taxpayer Identification Number (TIN), usually your Social Security Number (SSN) or Employer Identification Number (EIN)
• Your federal tax classification (e.g., individual/sole proprietor, LLC, corporation)

TikTok uses this information to report your earnings to the IRS. At the end of the year, you’ll also want to watch for any Form 1099s from TikTok. These forms summarize your income for tax purposes.

How much tax do I need to pay on my TikTok Shop account?

The income you earn from selling on TikTok Shop is part of your overall tax picture.

How much you owe overall depends on:

• Your total income for the year
• Your tax bracket
• Any deductions or credits you qualify for

Take note: Sales tax is separate from income tax. You may need to collect and remit sales tax depending on your state’s rules.

What is the tax rate for TikTok transactions?

Income from TikTok—whether from the Creator Fund, brand deals, or selling on TikTok Shop—is generally considered self-employment income.

This means:

• You’ll pay federal income tax based on your tax bracket.
• You may owe state income tax, depending on where you live.
• You’ll also pay self-employment tax, which covers Social Security and Medicare contributions (currently 15.3%) for earnings over $400.

What are the tax implications of TikTok coins and TikTok Diamonds?

When TikTok coins are used for gifting, the fair market value of the gifts is converted to TikTok Diamonds. It’s not until you cash out your Diamonds that this is seen as in real-world income.

Take note:

• TikTok does not automatically withhold taxes, so you’re responsible for reporting this income.
• If your total TikTok earnings exceed $600, TikTok may issue a Form 1099. Even if you don’t receive a form, you must still report the income.
• This income will factor into your federal and state income and self-employment tax.