We’ve worked with hundreds of content creators, and one thing is clear: you’re not alone when it comes to having questions about content creator taxes. Between confusing advice online and a lack of creator-specific guidance, it’s hard to know what actually applies to you.
That’s why we’re breaking down some of the most common questions we hear. Wondering if you really have to report income under $600? Thinking about forming an LLC in Wyoming? Tempted to write off your entire life? You’re in the right place.
Watch the full video where we answer all of this and more:
Do I need to report my income if I made less than $600?
Yes, absolutely.
This is one of the biggest myths floating around. The $600 myth comes from when companies are required to send 1099s. Just because you didn’t meet the threshold to receive a 1099, doesn’t mean you do not have to report that income.
If you made even one dollar from content creation, the IRS wants to see it on your tax return. As a self-employed creator, you’re responsible for reporting all your business income, regardless of whether you receive a 1099 or not.
Should I form my LLC in a state with no income tax?
We get the appeal. Wyoming and Florida sound like tax havens. But if you don’t live there, forming an LLC in one of those states probably won’t help. Here’s why:
The biggest benefit of having an LLC is legal protection. If your business gets sued, your personal assets (like your car, house, or savings) are protected as long as your LLC is set up in the state where you actually live and work.
And that no-state-tax thing? Not so fast. LLCs are pass-through entities, which means the income flows through to your personal tax return. If you live in a state with income tax, you’ll still need to pay it, regardless of where your LLC is formed.
Done-for-you taxes and bookkeeping for creators
What’s the difference between a bookkeeper and a CPA?
Great question.
A bookkeeper keeps your day-to-day financial records in order. They track your income and expenses, categorize your transactions, and make sure everything is neat, accurate, and up to date.
A CPA, or Certified Public Accountant, helps you with strategy. They guide you on how to pay yourself, when to switch to an S Corp, how to save on taxes, and they file your tax returns. They’re also the ones you’d turn to if the IRS ever had questions.
You can think of your bookkeeper as your financial organizer and your CPA as your tax strategist.
Can I write off my entire life?
Not quite, but we get why you’d ask.
As a creator, a lot of your life blends into your business. You turn your personal interests and passions into content. And to be fair, even outside of cameras, props, software, and even a portion of your rent and internet, a lot of your niche-specific expenses do count as write-offs!
Beauty influencers can write off the skincare products they review, fashion creators can deduct the clothing they advertise, and even the video games you stream on Twitch count as a business expense!
That said, writing off everything in your life is a risky move. Personal expenses that don’t have a clear business purpose shouldn’t be included. If something is partially business and partially personal, you can deduct just the business portion. The key is to stay honest and keep clear records.
Is it tax advantageous to put my kids on payroll?
It can actually be an incredibly effective tax strategy!
If your kids genuinely help out with your business by appearing in your videos, taking photos, or helping with editing, they are employed! You can pay them a reasonable wage and deduct it as a business expense.
Say you pay your kid $10,000 a year. That’s not enough for them to owe Federal taxes, and it’s 100% deductible from your taxable income. Pretty sweet, right? Just remember, they need to actually work, and you need to treat them like a real employee with records, pay stubs, and documentation.
Conclusion
Being a content creator comes with its own unique set of tax rules and financial questions. We’re here to help you make sense of it all with bookkeeping, accounting, and tax services built just for creators.
If you’re ready to stop worrying about content creator taxes and start focusing on your content, book a call with us. We’d love to support you and your business every step of the way.