Taxes for TikTok Creators: What You Need to Know

If you’ve found yourself cashing in on TikTok’s popularity, congratulations! Being a content creator is exciting, but once that income starts flowing, taxes become a part of your story. 

Navigating the world of taxes for TikTok creators can seem daunting, but with a little bit of knowledge, you can handle it like a pro.

Understand Your Income

When you’re a TikTok creator, you might earn money from various sources: brand deals, TikTok shop, affiliate links, TikTok’s Creator Fund, or even selling your own merchandise. The IRS considers all of these as taxable income.

If you earn $600 or more from a single company or brand during the year, you’ll likely receive a 1099 form. But even if you don’t get one, you’re still required to report all your earnings. Yes, even that $50 affiliate link payment counts!

Act Like a Business Owner

As a TikTok creator, you’re considered self-employed. The IRS views you as a small business, so you’ll need to file a Schedule C (Profit or Loss from Business) along with your regular 1040 tax return.

Being self-employed also means you’re responsible for all of your self-employment taxes, which cover Social Security and Medicare. The current rate is 15.3% of your net earnings. This is in addition to any Federal and State income tax you may owe, so keeping track of your income and expenses is crucial if you’re going to minimize your tax bill.

A great way to track your income and expenses is to create a separate bank account dedicated to content creation. Anytime you get paid for your work, it goes to that account. Running all your expenses through that account will keep you from mixing business with your personal funds. Best of all, it legitimizes your business with the IRS.

Plan Ahead for Taxes 

Unlike a traditional job, there’s no employer withholding taxes from each paycheck. It’s your responsibility to save up for taxes and set aside a percentage of your income each month. We recommend creators aim for 25-30% to cover both federal, state, and self-employment taxes.

If you expect to owe more than $1,000 in taxes for the year, you should definitely start quarterly estimated tax payments. These payments are made in April, June, September, and January. Here’s a list of important tax dates for content creators! If you don’t pay quarterlies, you may be hit with an unexpectedly big tax bill in addition to penalties.

Don’t Forget State Taxes

Federal taxes often get the spotlight, but you should also plan for state taxes. When you make quarterly payments, you can also make them to your state government.

Rules vary by state, so it’s important to learn about your local requirements. Some states also have specific rules for self-employed individuals. If you’re lucky, you can even live in a state that doesn’t have state income taxes like Florida or Nevada.

Deduct, Deduct, Deduct 

Here’s the fun part: deductions. As a content creator, many of your work-related expenses can be written off to reduce your taxable income and your overall tax burden.

Some common deductions include:

• Equipment: Your ring light, camera, tripod, or even your phone if it’s primarily used for creating content.
• Software and Subscriptions: Video editing tools, music licensing platforms, Canva, and Adobe Creative Suite.
• Home Office: If you have a dedicated space for filming, you can deduct a portion of your rent or mortgage, utilities, and internet. 
• Travel Expenses: If you’re attending events, meeting with brands, or filming on location, travel costs like airfare, hotel stays, and meals may be fully or partially deductible.
• Props and Costumes: That giant inflatable banana for your skit? Yep, deductible!

Keep detailed records and receipts for all your expenses. Using apps or a spreadsheet (grab ours here) to track your spending can make tax season much less stressful.

Final Thoughts

Taxes for TikTok creators might not be the most glamorous part of the job, but they’re a necessary step in building a sustainable and legitimate business. By understanding your obligations, keeping good records, and seeking help when needed, you’ll be well on your way to handling taxes like a pro.

Want a little help managing all the tax stuff so you can focus on creating and inspiring your audience? Let’s talk! We work only with content creators like you to manage bookkeeping, accounting, and more.