How to Prepare for Tax Time as an Influencer

Did you know that as an influencer, you have to file taxes like any other self-employed individual in the USA? Social media influencers, content creators, YouTubers, and more all qualify as business owners when it comes to tax time. Luckily, there’s an easy way to handle your taxes – and prepare for tax time – as an influencer thanks to our Business Savvy Influencer Course. But, if you’re looking for a more DIY method, here are a few things we suggest as professional accountants to start preparing for tax time as an influencer:

What You Need to Know as an Influencer to Prep for Tax Time:

As an influencer, you’re likely going to be classified as a sole proprietor or single-member LLC. If you’re not sure, it’s likely that you’re a sole proprietor. To be classified as an LLC, you’ll need to file with your state – and it’s possible that you might not be in the right stage of your business to even consider filing as an LLC.

Whichever you do classify as it’s important to ensure you’re reporting your income. Why? Firstly, the IRS is not likely going to skip out on the taxes you could be paying – which is lining you up for an audit, and not a good one. Second, that income can help you in the long run when you’re applying for loans, reporting business expenses, and more. 

How Do I Keep My Finances Organized as an Influencer?

Part of being prepared for tax time as an influencer or content creator is having your finances organized. This includes tracking your expenses, income, and potential deductions. While you can do this manually by keeping copies of your receipts and invoices, along with racking transactions in your bank account. 

If you’re looking for a less time-consuming option, we recommend using Quickbooks. Quickbooks will help you track your expenses and create invoices, plus, you’ll be able to track transactions as it links to your bank account. 

What Should I Expect During Tax Time as an Influencer?

For the most part, filing as an influencer is pretty straightforward and simple depending on how “large” of an influencer you are. The more transactions you have, gifted products, sponsorships, and expenses, the more complicated your taxes can be. If you’re a smaller influencer, it’s easier to keep track of everything. 

Overall, you should be prepared to pay taxes on your earnings from the year – if you’re preparing way ahead of time, you can start paying quarterly taxes. If not, you should expect them during tax time.

Where Do I Go If I’m Having Issues Preparing for Tax Time?

If you’re still having trouble preparing for tax time, it’s best to consult with a tax professional or accountant. This will ensure that you are completing and tracking everything necessary and will prevent mistakes or missteps in accounting your finances. Typically, you can make do with a consultation.

If you are an influencer looking for help with your finances and preparing for tax time, check out our Business Savvy Influencer Course or reach out to ModVentures today.