When to Pay Taxes as a Content Creator
So, you’ve turned your passion for creating content into a paying gig — congrats! Whether you’re on YouTube, OnlyFans, Twitch, TikTok, or Instagram, earning money from your craft is a big deal. But along with the perks of being your own boss comes one unavoidable task: paying taxes. Don’t panic. This guide will walk you through how and when to pay taxes as a content creator.
Do content creators really need to pay taxes?
The short answer is yes. If you’re earning money (even if it’s just $5), you’re responsible for reporting your income and paying taxes. This includes money earned from sponsorships, ad revenue, affiliate links, merchandise sales, or even fan donations like tips or subscriptions.
How much do you need to earn to file taxes?
Although you may hear that you need to start paying taxes if you earn $600 or more, you actually need to claim and pay taxes on any income you earn. Even if you have another job and your content creation is just a side hustle, you’re still required to report that extra income.
When are taxes due?
You’re probably familiar with the April 15 tax filing and payment deadline. That one definitely applies to you as a content creator. (If you need more time, you can file an extension. However, the extension applies only to filing your tax forms, not to paying taxes due. If you don’t make a payment on April 15, you may need to pay interest and penalties on your tax liability.)
But you should also plan for estimated quarterly taxes. These are typically due April 15, June 15, September 15, and January 15 each year. (These dates may shift around based on holidays and weekends, but that is a rough estimate of when these payments are due to the IRS.)
What happens if you miss quarterly payments?
If you don’t pay estimated taxes throughout the year, you could face penalties when you file your annual return. The IRS expects self-employed individuals to make regular payments, so skipping these can lead to added interest and penalties. If you’re unsure how much to pay, a general rule of thumb is to set aside 20-30% of your income for taxes.
You may be able to get away without making these payments, especially if you have a day job. You may be able to have extra withholdings on your regular paycheck to help account for the extra income. We’ve created a helpful graphic to refer to so you don’t forget these dates.
How do you calculate taxes?
When you’re self-employed, taxes can feel a bit overwhelming because you’re paying both income tax and self-employment tax. It can also feel like a moving target, because your income may fluctuate, especially when you’re first getting started.
Here’s a breakdown of the taxes you may need to pay:
- Income Tax: This depends on your total income and filing status (single, married, etc.). The more you earn, the higher your tax bracket.
- Self-Employment Tax: This is a flat rate of 15.3% that covers Social Security (12.4%) and Medicare (2.9%).
- State and Local Taxes: You may also need to account for state and local taxes.
You’ll calculate these taxes based on your net income, which is your total earnings minus business expenses. Yes, those fancy cameras, editing software, and professional services can help reduce your tax bill.
The Bottom Line
Paying taxes as a content creator might not be the most glamorous part of the job, but understanding when to pay taxes as a content creator is essential. By knowing your tax obligations and staying organized, you can avoid stress and penalties while focusing on what you do best—creating amazing content.
So, grab a coffee, set up a system for tracking your earnings, and remember: taxes are just part of the journey to being your own boss. Not sure you want to manage the whole thing on your own? We work exclusively with content creators just like you to take taxes, bookkeeping, and accounting off your plate. Book a call to see how we can help.
