As a content creator, it’s super important to understand everything you can write-off when it comes to your taxes to make sure you’re maximizing your income. As the Content Creator profession is still relatively new, there is not a lot of guidance when it comes to being informed during tax season!
I’ve compiled a list of the most common income streams and expenses for content creators, especially travel bloggers, to help you through the tax season.
When I started my travel blog in January 2023, I had a hard time finding resources for what I had to include as income, and what I could or could not write-off as a content creator. Did you know you have to include the value of everything that was gifted to you as income?
And if you’re just starting your blog this year, make sure to start a spreadsheet to keep track of all your income and expenses! This will save you a ton of time and headaches come next tax season.
This information is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant and is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law. Learn more.
Firstly, it is probably more than you think! But secondly and more importantly – do not stress over this part, especially if you did not keep track all year.
Making money off of being a content creator is something to be celebrated! Plus, once you get going, you’ll find it’s a lot easier to track everything down than you think.
Cash Basis vs. Accrual Basis Accounting
Something you might hear is cash vs accrual basis accounting. To put it in very simple terms with examples:
Cash Basis Accounting: Record your income when you receive the cash payment or the free product or hotel stay. If you posted an Instagram Reel for a client in December 2023, and received the cash from the client in January 2024, the income will get recorded in 2024.
Record your expense when you pay cash for it. If you pay for a course in December 2023, but don’t actually take the course until 2024, the expense will get recorded in 2023.
Accrual Basis Accounting: Record your income when you perform the service or send the requested deliverables to the client. If you posted an Instagram Story for a client in December 2023, and received the cash from the client in January 2024, the income will get recorded in 2023.
Record your expense in the period (month or year) it is related to. If you pay for a flight in December 2023, but the flight takes off on January 4, 2024, the expense will get recorded in 2024.
Most content creators use cash basis accounting, myself included.
In-kind exchanges (gifted campaigns)
You know that new skincare product that ABC Company sent you for free in exchange for a shoutout on your Instagram Story? Yep, that product counts as income.
Gifted exchanges are very common, especially when you are just starting out as a content creator! Make sure to capture the value of any goods or services you receive in exchange for content. Here are a few common examples:
Be sure to include the value of “free” hotel stays. I typically pull a screenshot from the hotel’s website of their nightly rate before taxes, and include that amount in my income.
If you want to work with hotels as a content creator, check out my Hotel Pitch Deck Canva Template. You’ll be able to personalize the deck on Canva with your unique brand colors, fonts, images, and more to land hotel collaborations.
If you got a “free” meal from a restaurant in exchange for posting them on your socials, this is income! Include the value of the meal before tax as income.
If a company shipped you their product(s) in exchange for you posting a story, reel, carousel, etc, include the value of the product(s) in income. Please note, this is not relevant if you are doing UGC (User-Generated Content) for the brand.
If a company gifted you a free service like a yoga class, coaching call, etc, in exchange for you promoting their company on your Instagram, include the value of the service before tax in your income.
Paid collaborations
Ah, the ultimate goal of becoming a content creator: to make money on Instagram! Any time you receive payment for your content, make sure to keep track and include it in your income.
If you want to start getting paid as a content creator on Instagram or other social media platforms, I highly recommend researching your value. One of my favorite tools is this Rate Calculator by @through.the.llyns – use this as your starting point!
From there, you’ll want to prepare a Media Kit to show brands that has your information, both qualitative (your background and what you bring to the table) and quantitative (your audience demographics). Check out my Media Kit Template you can download today and get started working with brands!
Remember, only include the actual cash you received during the year for these collaborations in your annual income. If you received the cash payment after December 31, that will count for next year’s income!
What can I write-off as a Content Creator?
This is the fun part – adding up everything you get to write off against your income this year!
Vehicle
Do you own or lease a car that you used to drive yourself to shoot content and work with brands? If so, then you’ll qualify for a vehicle deduction!
Make sure to keep track of your mileage while you’re working. I use a Google Spreadsheet to write down when I drive somewhere to take content or stay at a hotel.
Here are other vehicle-related expenses to keep track of that you will be able to write-off as part of your vehicle deduction. Remember that you will deduct a portion of these expenses, unless your car is 100% used for business.
Make sure to keep track of any parking fees you pay while traveling for business. I like to put these on my credit card whenever possible, as it is a bit harder to keep track of cash payments, like for parking meters.
Usually this is a bi-annual or annual payment so should be easy to track. Include the total amount you paid for your car insurance for the year.
Especially if you own your car, maintenance and repairs can add up big time! Make sure to save those receipts.
Depending on the state you reside in, you can often deduct a portion of your Car Registration Fees. Hold onto that letter they mail you with the registration fee breakdown.
If you lost the paper or threw it out, do not worry! You can usually look this up online.
Home Office
This is a huge one for all of my renters or homebuyers out there! You’ll be asked for the square footage of your entire home and the square footage of your home office to calculate the percentage of your home that is your office.
That percentage will be applied to the following deductible home office expenses:
This should be pretty simple to calculate. For support, you can use your Rental Agreement or bank statements.
This includes expenses like household gas and electric, your water bill, trash removal, etc.
Again, especially if you own your home, maintenance and repairs can add up big time! Make sure to save those receipts and add them all here.
This will include the total amount of insurance paid for the whole year.
This can include things like home security cameras or systems, homeowners associations (HOA) fees for the year, housekeeping, other cleaning services, and more.
Communications
For my fellow content creators on Instagram, I know you’ve got cell phones so this will be big! You’re able to deduct a portion of your cell phone service bill and your internet service bill.
Supplies
Supplies will include anything that you purchased to use in your business, typically things that last less than a year! Some examples include:
You know all those guides that Instagram coaches or other content creators are selling? You can deduct the full cost of those! If you’re looking for a guide to help you launch your own blog – check out my 6 Weeks to Success Guide (and then write off the cost!).
This would include items like a tripod, external monitor, hard drive, laptop stand, and more. I’ve linked a few of my favorites if you’re looking for any of these accessories.
This will be very specific to your own blog. For example, if you run a food blog, then part of your supplies will include the food purchased to create your videos.
Advertising
This is what it sounds like! You get to deduct any advertising expenses, like Facebook Ads, Instagram Ads, Pinterest Ad Campaigns, fees paid to advertising agencies, and more.
Meals
Most work-related meals are 50% deductible, meaning you can only write off half of the cost. Deductible meals include meals during business travel, office snacks, meals at a conference, and meals while conducting business.
Business Travel
As a travel content creator, business travel deductions are probably the biggest expense category I claim on my taxes. This category includes:
Keep track of the cost of all of your flights you take for business! For example, if you are flying to a hotel to take content for them, deduct the cost of your roundtrip flight.
I like to save the email confirmations from my flights as support for these expenses. You can also track this on your credit card or bank statements.
You are able to deduct the costs for your business travel lodging. If you traveled to a conference related to your line of content creation business and stayed in a hotel overnight, deduct the cost of your hotel.
If you rented a car while on a business trip, you are able to deduct the cost of the rental car and all related expenses (gas, insurance, parking, etc.).
For example, any Ubers you may take to or from the airport for business travel.
Other Fees
While this is really an all-encompassing bucket that you’ll need to tailor to your specific business as a content creator, there are a few I’d like to call out.
I personally have quite a few PayPal and Stripe fee transactions that I include in this section. Sometimes clients will pay you via PayPal or Stripe, which will take a cut of your earnings. The good news is that you get to deduct that fee.
If you have a website for your content creation business, you are able to deduct the related domain and hosting fees. If you’re interested in starting your own website, I highly recommend Bluehost – this is what my site is hosted on!
This can include things like iPhone app subscriptions that you use to create content. For example, VSCO, CapCut, Adobe Pro, and any other editing software you subscribe to and pay a fee for.
You are allowed to deduct up to $5,000 in startup costs for your new business within the first year of starting your business.
If you’re seriously lost and wanting more help with your taxes, I recommend checking out Cookie Finance, which I found while I was starting up my blog. This is not sponsored or in any way affiliated with them, but Nate has been super helpful to me personally!
And as always, feel free to send me an email or DM on Instagram with any questions!
mariss
