Quick info on taxes for YouTubers, Instagrammers, Bloggers, Vloggers, and other social media influencers.

Social media influencers are people who make use of their established credibility to influence their followers through social media. They could be celebrities with a huge fan following, industry experts or professionals in a particular field, or micro-influencers. Influencers, too, have to file their tax returns as long as they are earning an income from their status. We’ve put together eight points for a quick reference on taxation for social media influencers.

  1. If you earn an income, you need to report it. This stands true for your income from the internet as well. As a social media influencer, you may not be an employee of any brand, but your income from collaborations, sponsorships, or those from the social media management companies are all reportable under federal law.
  2. An influencer can either be a hobbyist or a business entity depending on the criteria set by the IRS. Details can be found here.
  3. Free gifts, products, or trips, too, are to be reported.  There is a $100 threshold for the gift/products you receive for being an influencer. Anything below the threshold need not be reported
  4. You should be getting Form 1099 MISC from any collaborator who has paid you an aggregate of more than $600.
  5. Apart from the income tax, you may have to pay Self Employment taxes if your influencer role falls within the IRS definition of SE. Your Self Employment income will then have to be filed using Form 1040-ES
  6. A reminder of the dates for filing taxes – If you are an individual or a corporation, the last date for your returns is the 15th of April every year. For partnerships, LLCs, etc., this is one month earlier, i.e. on the 15th of March. So, fill in your returns accordingly.
  7. Legitimate expenses can be deducted from your income as long as they are “ordinary and necessary” for the work you do.  Deductible expenses include your spending on clothing, home-office needs, online tools, travel expenses, etc.
  8. Filing your taxes by yourself is easy. Or easier still, hire an expert to do it for you.

If anything regarding your taxes as a social media influencer confuses you, just contact us, and we’ll be happy to guide you.

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