Do YouTubers Pay Taxes? 10 YouTube Tax Tips You Need To KnowMay 06, 2020
YouTube Taxes can be complicated. Both Small YouTubers and Full-time YouTubers struggle with YouTube Taxes and understanding paying taxes on their YouTube Money. Here are 10 YouTube Tax Tips You Need to Know!
- Does YouTube Take Out Taxes for You?
- Do You Pay Taxes on Brand Deals and Affiliate Earnings?
- Can You Deduct Purchases for YouTube From Your Taxes?
- How Much Do You Need to Earn to Pay YouTube Taxes?
- What I Can You Deduct From Your YouTube Taxes?
- How Much Money Do You Need to Set Aside for YouTube Taxes?
- Should You Pay YouTube Taxes Quarterly or Yearly?
- Do You Need to Set Aside Money Besides YouTube Taxes?
- Do I Need to Incorporate as a Business?
- How Should You Separate Business from Personal Finances?
Many YouTube Creators don't know if they need to pay taxes on YouTube Ad Revenue. The short answer is YES. You do need to pay YouTube Taxes and you have to pay taxes on YouTube income from Brand Deals and on Affiliate Marketing Income. YouTube Income Taxes represent self-employed income, your YouTube Taxes are not taken out for you by YouTube since you are not a YouTube Employee.
YouTube Adsense earnings are reported on a 1099 form you receive for your YouTube monetization earnings and you will be filing a 1044 Tax for or a Schedule C.
**Disclaimer: I am not a Financial Advisor or Licensed Tax Professional, this information for entertainment and education purposes only. Please consult a licensed financial professional.
DOES YOUTUBE TAKE OUT TAXES FOR YOU?
No they do not and you are responsible for reporting earnings via your 1099 supplied by YouTube/Google and paying the appropriate taxes on those earnings.
DO YOU HAVE TO PAY TAXES ON BRAND DEALS AND AFFILIATE EARNINGS?
Yes you have to pay taxes on the income you earn through sponsored brand deals and through your affiliate commissions, these are not deducted for you.
CAN YOU DEDUCT PURCHASES FOR YOUR YOUTUBE CHANNEL?
You'll want to talk to a tax advisor or CPA but ultimately you can deduct reasonable and necessary expenses including training, camera equipment and business travel.
HOW MUCH DO YOU NEED TO EARN TO PAY YOUTUBE TAXES?
You'll need to check what is the legal requirement based on your location. But you should be reporting all earnings to your local government as legally required.
WHAT CAN I DEDUCT ON MY YOUTUBE TAXES?
As a YouTube content creator you can deduct necessary items, your dedicated office space, your internet usage and obviously any equipment purchases.
HOW MUCH DO YOU NEED TO SET ASIDE FOR YOUTUBE TAXES?
A good rule of thumb is often 30% of your overall earnings every time revenue comes in.
SHOULD YOU PAY YOUTUBE TAXES QUARTERLY?
Most CPA's recommend you pay taxes quarterly to avoid a larger tax bill at the end of the year.
DO YOU NEED TO SET ASIDE MONEY ASIDE FROM THE MONEY FOR YOUTUBE TAXES?
Yes. You want to not only have an emergency fund, but several months of operating expenses, and equipment budget, and also money to replace broken cameras or computers you need to make your content.
DO I NEED TO INCORPORATE MY YOUTUBE CHANNEL AS A BUSINESS?
There are tax advantages to incorporating your business and it offers you some legal protections as well, and you should consult with a CPA about the best strategy regarding and S CORP or LLC for your channel. You don't have to do this as soon as you start making money, but the sooner you do the more benefits there are.
DO I NEED TO SEPARATE BUSINESS AND PERSONAL EXPENSES
This offers you the best way to keep track of bookkeeping but also can help you justify your business expenses during tax time and makes it less likely you'll be audited.