9 Ways to Avoid Common Tax Filing Mistakes as an Influencer

Being an influencer comes with a lot of perks: flexibility, creative freedom, and the ability to turn your passion into a career. If you’re earning money through brand deals, sponsorships, ad revenue, or product sales, staying on top of your taxes is crucial to avoid common tax filing mistakes as an influencer.

Here’s some common tax mistakes we have seen — and how to avoid them — so you can keep more of your hard-earned money and stay out of trouble with the IRS. 

1. Not Reporting All Income

Many influencers receive payments from multiple sources, including brands, affiliate programs, YouTube AdSense, or Patreon. Even if a company doesn’t send you a 1099 form, you’re still required to report all earnings. Even if you make just $1 from content creation, you must report it to the IRS. Keep detailed records of every payment received, whether through PayPal, direct deposits, digital wallets, or some other payment method.

2. Forgetting to Pay Quarterly Taxes

Remember when you had that regular job? Each pay period, your employer withheld income and payroll taxes and sent them to the IRS and state revenue departments. But as a business owner, you’re responsible for that part. And depending on how much you earn, you may need to pay estimated taxes every quarter. Failing to do so could lead to penalties and a hefty tax bill in April.

3. Mixing Business and Personal Finances

Using the same bank account for personal and business expenses can make tax time a nightmare. To stay organized, open a separate business account and use it for all influencer-related transactions. This will make it easier to track income and expenses and protect your personal assets.

4. Not Keeping Track of Deductible Expenses

As an influencer, you have a variety of business-related expenses that can reduce your taxable income, and as a result, your overall tax bill. Some common deductions include:

• Camera equipment and editing software
• Internet and phone bills
• Website hosting and domain fees
• Travel for work (flights, hotels, meals)
• Home office expenses
• Marketing and advertising costs

If you don’t keep good records, you could miss out on these valuable deductions and end up overpaying on taxes.

5. Failing to Issue 1099s to Freelancers 

If you hire a photographer, editor, virtual assistant, or other independent contractor and pay them more than $600 in a year, you may be required to send them a 1099 form. Failing to do so can lead to IRS penalties. Keep track of all contractor payments and issue the necessary forms on time.

6. Overlooking Sales Tax Responsibilities

If you sell merchandise, digital products, or courses, you may be required to collect and remit sales tax. Your sales platform may take care of that for you. However, each state has different rules if you sell directly, so check your local regulations to avoid unexpected tax liabilities.

7. Not Hiring a Tax Professional

Tax laws can be complicated, especially when you’re self-employed. A qualified accountant can help you maximize deductions, ensure you’re filing correctly, and save you from costly mistakes. Consider working with someone who specializes in influencer or content creator bookkeeping and taxes, like us (you knew a plug for our services was coming sometime). 

8. Waiting Until the Last Minute

We know doing taxes is the last thing you want to do, but procrastinating on taxes can lead to rushed mistakes, missed deductions, and unnecessary stress. Start organizing your records early, keep receipts in one place, and use a spreadsheet or accounting software to track your earnings and expenses throughout the year.

9. Ignoring IRS Notices

If you receive a letter from the IRS, don’t panic — but don’t ignore it either. Sometimes, notices are just requests for additional information. Addressing them promptly can prevent larger issues down the road. 

Conclusion

Taxes may not be the most glamorous part of being an influencer, but getting them right is essential to running a successful business. By staying organized, understanding your obligations, and seeking professional help when needed, you can avoid common tax pitfalls and focus on what you do best — creating amazing content. Book a call so we can chat about your needs!