The life of a YouTuber looks pretty glamorous from the outside, and don’t get us wrong, it definitely can be nice! You can vlog your daily life, review the latest tech, make your cat an internet celebrity, and talk about all your passions and interests. The fact that you can earn money doing what you love is incredible! But with that money comes the one thing no online business can escape…taxes.
We get it. Taxes aren’t the most exciting part of being a content creator, but handling them right can save you money and keep the IRS out of your comment section. Here are the top things you need to know and do when it comes to taxes.
Think Like a Business Owner
Whether you’re making money through partner ads, sponsorships, memberships, super chats, merch, or affiliate links, you’re considered self-employed in the eyes of the IRS. That means you’re running a small business, and that income is all taxable.
But here’s the silver lining: running a business also means you can deduct business-related expenses. That editing software subscription, camera gear, lighting, your home office, that’s all deductible. Investing in your business through professional development, business trips, and other expenses that are also potential tax deductions.
Track Everything (Yes, Even That $8 Tripod Clamp)
Good records equal less stress. Keep track of every bit of income and every expense, big or small, that relates to your YouTube business. It might feel silly saving receipts for that $8 tripod clamp, but those little expenses can add up and lower your taxable income.
You don’t need anything fancy. A simple spreadsheet or a bookkeeping app can do the trick. We have a handy (and free) income and expense tracker that can get you started.
Done-for-you taxes and bookkeeping for creators
Set Aside Money for Taxes
Unlike a regular job where taxes get taken out of every paycheck, YouTubers usually receive gross pay without any taxes withheld. When you get that shiny AdSense deposit, don’t go spending it all at once.
A good rule of thumb: set aside around 25-30% of your income for taxes. You’ll also benefit from paying quarterly estimated taxes, so it helps to stay on top of things to avoid any unexpected big bills when you file.
Understand What You Can (and Can’t) Deduct
We mentioned deductions earlier, but let’s dive a bit deeper. Here are some common write-offs for YouTube creators:
- Equipment: Cameras, tripods, microphones, drones, and so on
- Software: Editing tools such as Adobe Premiere Pro or Final Cut.
- Home office: If you film or edit at home, you may be able to deduct a portion of your rent, utilities, and internet. (We go more in-depth into the home office deduction in this post.)
- Service providers: The people you pay to edit videos, manage your marketing, or schedule your appointments.
- Education: Online courses, conference fees, and other educational opportunities that help you up your YouTube game.
- Travel: Heading to a conference or vlogging your trip? Travel-related expenses might be deductible if it’s for business.
But personal expenses don’t count. For example, that vacation to Hawaii is only deductible if it’s legitimately tied to content creation.
When in Doubt, Talk to a Pro
Let’s be honest: tax rules can be confusing, and the last thing you want is to make a mistake that could cost you later. If you’re making a decent income or have a lot of moving parts (like multiple revenue streams), it’s worth getting help from a professional.
They can make sure you’re not missing deductions, help with quarterly tax estimates, and keep everything compliant. Think of it as hiring an editor — but for your finances. And, in case you were wondering, that is exactly what we do for content creators just like you. We’d love to book a call to see how we can support you.
Conclusion
Being a YouTube creator comes with freedom, creativity, and yes, a bit of financial responsibility. But with a little planning and organization, tax season doesn’t have to be scary. Treat your channel like the business it is, keep good records, and don’t be afraid to ask for help when you need it. That’s where we come in! Book a call, and we’d be happy to chat about your finances and how we can help you save as much money as possible on taxes!