Tax write-offs are no news. Businesses and people have enjoyed the benefits of tax deductions because the tax rules are easy for conventional career types. But as a social media influencer and content creator, taxes can be… taxing!
Nobody talks about the business expenses and the tax on top of it taking a good bite out of your fluctuating income. And the laws to pay or file taxes can be troublesome too.
But since the IRS classifies influencing, small businesses and content creators as solo proprietorships, there are many tax returns you just don’t know about!
In this blog post, I want to talk about 10 influencer tax write-offs you can deduct while you pay your taxes this year. But first…
What is a tax deduction?
According to Investopedia, a tax deduction is the amount that you can deduct from your taxable income to lower the total amount of taxes you owe.
There are two types of tax write-offs that anyone can opt for:
- Standard deduction: this is a single deduction of a fixed monetary amount in your adjusted gross income.
- Itemized deduction: these are yearly expenses that the IRS has allowed to write off if you can show proof of the expense via receipts and invoices.
Itemized deductions are something that most content creators and influencers are unaware of. If done properly, it can save you much more than a standard deduction. And because of that, you miss out on the tax write-offs for content creators that can save you your hard-earned money!
What Influencer Tax Write-Offs Can I Claim?
Influencer work is no joke, but it can be sweeter with some tax benefits and write-offs. Check out these 10 influencer taxes you don’t have to pay this tax season.
Home Office
Home office deductions are the biggest tax write offs that many influencers aren’t aware of. But if you work from home, you’re allowed to claim a lot more than you might realize.
You can easily claim tax write-offs for:
- A percentage of your rent,
- Property taxes,
- Mortgage interests,
- Mortgage insurance premiums,
- Home insurance,
- Repairs,
- Office supplies,
- Water and electricity bill,
- Dedicated desk and ring lights.
But before you get these deducted, ensure that your home is your primary place of business. You also need to add up all house costs and then calculate a percentage of these as a write-off.
Travel Expenses
Traveling is part of your business expenses. Whether it’s about meeting a potential client for sponsorships or other content creators, travel expenses are business tax deductions!
You can get the following written off from your estimated tax:
- Domestic or international flights,
- Transport costs (taxis and rental cars)
- Accommodation (hotel or Airbnb stays)
- Mileage for road trips.
But to get the IRS to write off half or all of your expenses, you need to have a detailed record of these items. Having receipts, invoices, and proof will help you while you file the state tax. Furthermore, you should also write down the miles you’ve driven for work-related activities!
Meals and entertainment
If your travel expenses to run your business can be written off, so can the meals and entertainment! Influencers often don’t realize the power of holding receipts for the meals and entertainment they enjoyed during their business travels.
Keep in mind that only meals and entertainment with potential clients, suppliers, or other business contacts can act as deductions for social media influencers. You can also get 50% deducted from your meals as a business tax.
Phone and internet bills
Influencers who work from home can easily write off a portion of their phone and internet bills, too. After all, you’re spending a long time online due to your business dynamics.
Unless you have a separate business phone number, only a portion of your phone bill can be written off.
Charity Donations
Donating money to a registered charity or foundation can easily lower your tax. As long as influencers pay special attention to keeping receipts of these donations, they can be written off from the business income easily.
Ensure your donation receipt includes:
- Your name,
- Date of donation,
- Amount donated,
- The name of the organization.
Website costs
Social media marketing and small businesses need a digital platform as their primary place of business. But did you know you can claim many tax write-offs from your website?
Yes, every cost associated with running that website is a write-off!
From building your website to hiring experts to optimize it for you, the creation cost of your website can be received on your tax returns. Here are some websites costs that you can claim today:
- Buying any copyrighted images,
- Hosting fees,
- Paid plugin costs,
- Domain name costs,
- Theme costs,
- Website builder fees.
Clothing and cosmetics
There’s no denying that one of the biggest expenses as an influencer is shopping for yourself and a lot of personal care products. If you can prove that these purchases are made for your business, you can write off a percentage of it instantly!
Here are some examples of purchases you shouldn’t forget to write:
- Fitness clothes if you’re a fitness coach or influencer,
- Beauty products like makeup for tutorial reels or reviews,
- Lingerie purchases for models and OnlyFans content creators,
- Any item purchase made with the intent to review and post about it.
App fees
Are you paying for the platform you’re using for your social media influencer business? The IRS lists that as one of the write-offs from your gross income!
Here are some types of apps you can get written off from your income tax bill:
- Social media management tools,
- Social media app subscriptions,
- Tax accounting software programs,
- Social media advertisement costs.
Self-employment tax
Social media influencers pay more when they don’t claim a self-employment tax deduction. But did you know influencers can write off their health insurance premiums by 100%?
Under the self-employed tax laws, the IRS allows individuals to get their health insurance premiums knocked off without itemized deductions. And the rule extends to yourself, your spouse, and your dependents!
Tax Information Advice
Being an independent contractor is all fun. But how well do you know your tax filing strategies? Do you have an up-to-date handbook of taxing policies? Can you point out a loophole if the IRS claims you can’t have an amount written off?
That’s where a tax advisor steps in for you. Studies show that businesses save more with a bookkeeper and tax advisor than by trying to go for a DIY approach!
Increase Your Tax Write-offs As A Content Creator
Influencers need to pay a lot when they’re working to create content from home. But taxes should be the least of your worries when there are so many tax write-offs to enjoy!
In this blog post, I’ve brought you 10 things that you don’t need to count in your tax form. But are you interested in hearing about 30 more tax write-offs?
Get in touch with us and enjoy lower taxes for your content creation business!
Destress Financially With Stanton Financial Co.
If you want to dive head over heels into being the creative mastermind of your brand, Stanton Financial Co. can help you.
Stanton Financial Co. is a premium bookkeeping and CFO service that brings big business strategies to small businesses, solopreneurs, influencers, and content creators.
Unlike most bookkeeping services, we make it easy for you to profitably manage your fluctuating income. Collaborate with brands and focus on doing what you do best– we’ll take care of everything else!
