Saturday Jan 28, 2023

Do Creators Pay Taxes on Money Earned? – TheStreet


Are you a creator?

There are so many new industries that have popped up as a result of the pandemic. One industry that exploded is the Creator Economy which includes influencers on TikTok, YouTube, OnlyFans, and Streamers. For many influencers, what started out as something fun to get them through the stay-at-home orders is now helping them earn a substantial income. According to TurboTax’s latest data:

Get every dollar you deserve with unlimited tax advice from experts who know self-employment taxes inside and out. Whether you’re a freelancer, independent contractor, small business owner, or have multiple streams of income, TurboTax Self-Employed can help you uncover the industry-specific deductions you qualify for. Plus, you can get up to an additional $20 off when you file with TurboTax Self-Employed.

  • There was a 207% increase in taxpayers claiming creator, streamer, influencer, or related term as their occupation, from tax year 2018 to tax year 2020
  • The median age of a TurboTax filer who claims creator as an occupation is 27; and of those filers, 47% filed as self-employed and 51% filed without a W2 – indicating nearly half of these taxpayers are relying on their creator occupation as a primary source of income
  • Top content creator occupations include Streamer, YouTuber, Twitch Streamer, Influencer, and OnlyFans.

Whether you’re a TikToker earning money showcasing your favorite dances or you are an influencer sharing the top beauty products on Instagram, we are here to answer some of the most popular questions we hear from creators about their newfound streams of income like:

  • “Does my creator income from YouTube, TikTok, and Instagram make me self-employed?”
  • “When do I have to claim my income from being a creator?”
  • “What can creators write off on their taxes?”

TurboTax Self-Employed will easily guide you through your taxes if you are a creator and will help you uncover industry-specific deductions related to your work as a creator, but here is a breakdown of what you need to know about your taxes as a creator.

Does my income from creating content for social media or from streaming make me self-employed?

If what started out as a few posts for fun evolved to creating content to make an income, then you are considered self-employed and will need to file your self-employed taxes at tax time. On the bright side, you can deduct so many expenses related to being a creator from your taxes.

When do I have to report my income as a creator?

If you are self-employed as a creator, you will have to report your income and file your taxes if you earn $400 or more in net income since this is the point where you have to pay self-employment taxes, which are calculated when you do your Federal taxes. Self-employment tax is automatically calculated by TurboTax Self-Employed when you do your taxes and is the Social Security and Medicare tax paid when you are self-employed.

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