Quitting your day job to become a full-time fashion influencer on Instagram or a gaming streamer on Twitch may seem like a pipe dream. It takes the average content creator six and a half months to earn their first dollar, according to data analytics company Demand Sage. According to a 2023 Goldman Sachs Research report, only about 4% of creators worldwide earn more than six figures.
No matter how much you earn by monetizing your content, expect to pay taxes on your earnings. The Internal Revenue Service (IRS) generally considers influencers and digital creators to be self-employed. That means you’re responsible for withholding money from your earnings, but it can also come with some interesting deductions. Let’s look at what all that means for you when it comes time to file your taxes.
Virtually any type of money you earn is taxable. The income of content creators is no different. Below are some common sources of income for content creators (with examples) that you will need to report to the IRS:
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Advertising revenue: You earn income through the YouTube Partner Program, Facebook Reels ads, or display ads on your blog.
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Brand sponsorships: A brand pays to create an Instagram story, TikTok video, or blog featuring their product.
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Subscriptions: Sell subscriptions to exclusive content on your Substack newsletter, Patreon, Twitch live stream, or Onlyfans page.
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Merchandise sales: You sell branded products, such as clothing or lifestyle products, on your social media channels or website.
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Affiliate commissions: You participate in programs like Amazon Associates and earn a commission when someone purchases a product through your TikTok, Instagram, YouTube, or blog.
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Donations and tips: You get “donations” and tips to create custom content from Onlyfans that a viewer requests or from Twitch Bits during a live stream.
Even non-monetary gifts, such as a branded gift sent to you by a company or a meal provided, can be considered taxable income if there is an expectation that you will perform a service (such as promoting the brand) in exchange for receiving it. Generally, creators must report anything they receive valued at $100 or more.
Read more: Independent Contractor Tax Filing: A Step-by-Step Guide
Whether you consider yourself an influencer, content creator, podcaster, livestreamer, or blogger, the IRS likely considers you self-employed. That means you are responsible for paying federal income taxes on your earnings, in addition to any applicable state and local taxes.
You are also required to pay self-employment taxes, also known as Social Security and Medicare taxes. Because you pay both the employee and employer portions, these taxes typically make up 15.3% of your income versus 7.65% when you are a regular W-2 employee.
Creators typically receive the following tax documents to use in preparing their returns:
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Form 1099-NEC: Companies use this form to report payments to freelancers and independent contractors. You may receive this form from the platforms you make money on, as well as any brands you work with. For 2025 (applies to returns due April 15, 2026) and earlier years, you should receive a 1099-NEC from any company that paid you more than $600. The reporting threshold increases to $2,000 by 2026 and will be indexed for inflation in future years under the One Big Beautiful Bill Act.
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Form 1099-K: Third-party payment platforms, such as Venmo or PayPal, and online marketplaces use this form to report payments you receive. They must send you Form 1099-K if your payments exceed $20,000 in at least 200 transactions. You’ll also get a 1099-K if you’re paid by credit card, debit card, or gift card, regardless of the amount.
Sometimes you’ll get both forms for the same income, like when a client pays you through Venmo. Make sure you keep good records of invoices and payments, so you don’t end up paying taxes twice on the same income.
Read more: Venmo taxes: IRS rules for payment app transactions
The tax deadline is April 15 for influencers (and everyone else). But you can’t just wait until you file your return to pay your entire year’s tax bill. If you earn significant income as an influencer or creator, you’ll likely be required to make quarterly estimated tax payments in January, April, June, and September of each year.
You will need to calculate and then report your net profit or loss using Schedule C. You will then calculate your self-employment taxes using Schedule SE. You will attach both forms to your 1040 if you are preparing a paper return. But tax filing software makes the process much easier, and many have versions designed specifically for self-employed workers and small business owners.
Read more: Free Tax Filing: How to File Your 2025 Return for Free
One of the good things about being self-employed is that you qualify for tax deductions that are not available to people who have regular jobs. Below are some examples of business deductions you can claim as a digital creator or social media influencer:
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Home office deduction if you use a space exclusively for business, including space you use as a studio
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Clothing and makeup if you buy items exclusively for photo shoots and promotions
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Some business tripsalthough it gets confusing if you travel for both business and pleasure
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Up to 50% of business mealsbut the food must be prepared in a restaurant and cannot be “luxurious or extravagant.”
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Commercial feesincluding the fees and commissions you pay to the platforms
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Marketing expensesincluding paid social media ads and costs related to collaborations
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Equipment, software, and supplies, But if it’s for business and personal use (for example, a laptop, phone, or camera), you can only deduct the part you use for business.
Creators may qualify for additional tax breaks, such as the health insurance premium deduction and the qualified business income (QBI) deduction. Business deductions can sometimes get complicated, so consult with a tax professional if you’re not clear about what’s allowed.
Read more: 18 Small Business Tax Deductions Worth Knowing About
Yes, digital content creators are included in the list of approximately 70 occupations that qualify for the new “no tip tax” deduction introduced in the One Big Beautiful Bill. You can deduct up to $25,000 in tips for tax purposes, but if you are self-employed, the deduction cannot exceed your net income for the year.
The deduction phases out if your modified adjusted gross income (MAGI) is more than $150,000 for single filers and $300,000 for married joint filers.
Read more: Are tips taxable? This is how the new ‘no tip tax’ deduction works
The IRS allows you to report a business loss if your expenses exceed your income. Say you’re an aspiring travel influencer and you spent $5,000 on photography equipment and editing software, but only earned $2,000 in sponsorships. You could claim the $3,000 as a loss to reduce your taxable income.
But if you don’t show profits in three of the last five years, the IRS may consider your influencer work a hobby. That means you won’t be allowed to deduct business-related expenses in future years.
Read more: Where is my tax refund? 4 Reasons the IRS May Be Delaying You.
Yes, content creators are typically responsible for paying federal income taxes and self-employment taxes. Depending on where they live, they may also pay state and local taxes.
TikTok issues a 1099-K if you are a TikTok store seller whose gross payment volume exceeded $20,000 in more than 200 transactions during the year. However, you will still need to report your store’s profits even if your sales volume did not meet these thresholds. If you make money on TikTok with brand sponsorships and affiliate commissions, the companies you work with will likely issue you a 1099-NEC.
You are responsible for reporting any income you earn on Onlyfans and other platforms, regardless of the amount. If you live in the US, Onlyfans will issue you a 1099-NEC if you earned and withdrew more than $600 on the platform during the tax year.