Filing taxes as a content creator

[Ajay7]

I have a few questions! I’ve read recently that content creators have to pay taxes on gifted items they receive from brands. How much are creators expected to pay for that and how should that payment be split throughout the year?  My next question is how much money should I set aside for taxes for each collaboration I accept? I’ve never paid quarterly taxes before either so when is each payment due & where do I go to submit them?

[DeepP]

Hi @Ajay7 ,

Great questions. 

1. For the gifted items, your tax liability would depend on type of gift you would receive. Here is a great FAQ link from the IRS, https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-tax..., which can help address most of the gift questions. 

2. Your quarterly estimated tax payments are based on your net profit. Here is another link that can help you get setup with the quarterly tax payments. A Guide to Paying Quarterly Taxes.

Do reach out with any following questions, after reviewing the links above. 

Deep

[HasaniJ]

Hey Ajay7,

Yes as a content creator the items you receive are considered to be income in the eyes of the IRS.  The value would be based on the Fair Market Value of the item (whatever it can be sold for).  So if you receive 5 apple watches each valued at $400, you would report $2000 of income on your return.  A good rule of thumb is to set aside 20-25% for Federal taxes and 4-6 for state.  Quarterly payments are due on the following dates:

4/15, 6/15, 9/15 and 1/15 (of the following year).  You can make the Fed payments directly on the IRS' website:

https://www.irs.gov/payments

Make sure your payment is for 2023 and not for any previous years like 2022 when you log in.