YouTube Tax 101: A Beginner's Guide - Palma Financial

Maximize your YouTube earnings by taking advantage of tax deductions.

Do you need help figuring out your tax obligations as a social media influencer or YouTuber? It’s no secret that taxes can get complicated, especially as new revenue streams come into play.

But don’t worry – we’ve got you covered.

Do YouTubers and social media influencers have to pay taxes?

It all depends on the purpose of your social media accounts. You can deduct eligible expenses from your taxable income to lower your tax liability if you are operating as a business. However, if your social media accounts are just a hobby, you’ll need to report the income on your taxes but won’t be eligible for expense deductions.

As a YouTuber or social media influencer, which income should I report on my taxes?

  • Brand sponsorships
  • Merchandise sales
  • Collaboration earnings on products
  • Affiliate link commission
  • Ad revenue
  • Products gifted for promotional posts

Do YouTubers and social media influencers have to pay taxes on gifted products?

Yes, gifts received as compensation are considered a form of income and should be reported on your taxes based on their value. However, if the value of the gift is less than $100, you do not need to include it on your tax return.

Want to reduce your tax liability as a YouTuber or social media influencer?

Here are some expenses you may be able to write off as deductions:

  • Computers, tablets, and smartphones used for uploading and editing videos
  • Filming equipment (e.g., cameras, lights, microphones)
  • Editing software
  • Copyright and trademark fees
  • Subscriptions (e.g., stock photography)
  • Marketing and advertising costs
  • Website costs
  • Emailing service costs
  • Percentage of cell phone and internet services used for YouTube
  • Supplies purchased for videos
  • Home office expenses
  • Travel expenses
  • Mileage

As a content creator, staying on top of your tax game is important. Book your complimentary tax assessment here.