Taxes are a pain, but creators and influencers can take these tax deductions to save thousands of dollars.

Why do content creators need tax deductions?

You’ve worked hard building your brand and monetizing your content, but tax season can feel like a gut punch when you realize how much you owe. The good news: if you’re a self-employed content creator or influencer, you’re entitled to a wide range of tax deductions that can significantly reduce your tax bill.

Here’s a comprehensive list of tax deductions for content creators and influencers, along with a few tips on how to maximize your deductions. Please note that every creator’s situation is unique, and it’s always best to consult with a tax professional before filing your taxes. We help creators find tax professionals on our Find an Accountant page. 

Fully deductible business expenses

You can deduct 100% of the following expenses from your income:

1. Equipment and hardware

If you’re a content creator, you likely need equipment to do your job. This includes cameras, microphones, tripods, lighting equipment, computers, tablets, smartphones, monitors, keyboards, and hard drives.

If a piece of equipment is used for both business and personal use, you can only deduct the portion used for business. For example, if you use your computer 50% for business, you can only deduct 50% of the cost. 

2. Software and apps

The same applies to software and apps. If you use software or apps for your content creation business, these expenses are deductible. This includes video editing software, graphic design tools, social media management apps, project management tools, and more.

If you use a software or app for both business and personal use, you can only deduct the portion used for business. 

3. Home studio and workspace

If you have a dedicated home office or studio space for your content creation, you can deduct a portion of your home expenses. This includes rent, mortgage interest, property taxes, utilities, and insurance. The deduction is calculated based on the percentage of your home used exclusively for business.

There are two methods for calculating the home office deduction: the regular method and the simplified method. The regular method requires you to calculate the actual expenses of your home office, while the simplified method allows you to deduct $5 per square foot of your home office, up to 300 square feet (that’s a max deduction of $1,500 per year). More on how the home office deduction works for creators.

4. Internet and phone

If you use the internet and phone for business, you can deduct the portion used for business from your taxes. If you use your internet and phone 80% for business, you can deduct 80% of the cost.

5. Social media management

Subscriptions to social media management tools and services are deductible if you use them for your business. This includes scheduling tools, analytics tools, and social media management platforms.

6. Content subscriptions

Subscriptions to content services that you use for your business are deductible, such as music licensing services, stock photo subscriptions, and streaming services that you use to research content. 

7. Professional services

Professional services, such as accountants, lawyers, and financial advisors, are deductible if you use them for your business. This includes tax preparation fees, legal fees, and financial planning fees. Also, if you use Karat and pay a membership fee, that’s deductible too! 

8. Subcontractors

If you hire subcontractors to help you with your business, you can deduct their fees. This includes freelancers, video editors, graphic designers, and social media managers. Note that you may need to issue 1099s to subcontractors you pay more than $600 in a year. 

9. Marketing and advertising

Marketing and advertising expenses are deductible if you use them for your business. This includes paid social media ads, search engine marketing, influencer marketing, and other forms of advertising. 

10. Education and training

Education and training expenses are deductible if they are related to your current business. This includes courses, workshops, books, and other educational materials. Note that this doesn’t include education for a new career or business. 

11. Industry events

If you attend industry events, such as conferences, trade shows, and networking events, you can deduct the registration fees, travel expenses, and other related costs. 

12. Business insurance

If you have business insurance, such as liability insurance or equipment insurance, you can deduct the premiums. 

13. Business banking fees

If you have a business bank account, you can deduct the fees associated with that account. This includes monthly fees, transaction fees, and other fees. 

14. Gifts

You can deduct up to $25 per gift per person per year for gifts you give to clients, customers, or other business contacts. 

15. Dues and subscriptions

Dues and subscriptions to professional organizations and industry publications are deductible if they are related to your business. This includes memberships to industry associations, subscriptions to trade publications, and other professional memberships. 

16. Retirement contributions

Contributions to a SEP-IRA, SIMPLE IRA, or solo 401(k) are deductible if you are self-employed. These contributions can significantly reduce your taxable income. 

17. Health insurance premiums

If you are self-employed and pay for your own health insurance, you can deduct the premiums from your taxes. Note that the deduction is limited to your net self-employment income.

18. Business travel

If you travel for business, you can deduct the cost of transportation, lodging, and meals. Note that the meals deduction is currently 50%, though this changed due to COVID-19 tax relief (100% deductible for 2021 and 2022). 

19. PR Services

If you hire a PR firm or publicist to help promote your brand, you can deduct the fees. 

20. Legal and accounting fees

Legal and accounting fees are deductible if you use them for your business. This includes tax preparation fees, legal fees, and financial planning fees. 

21. Office supplies

Office supplies are deductible if you use them for your business. This includes paper, pens, notebooks, and other supplies. 

22. Shipping and postage

If you ship products or merchandise related to your business, you can deduct the cost of shipping and postage. 

23. Music licensing

If you use licensed music in your content, you can deduct the cost of music licensing fees. 

Partially deductible business expenses

24. Vehicle expenses

Vehicle expenses are a bit more complicated. The IRS has two methods for calculating vehicle deductions: the actual expense method and the standard mileage rate.

The actual expense method requires you to calculate the actual cost of using your vehicle for business, including gas, insurance, repairs, and depreciation. You can only deduct the portion used for business, so if you use your vehicle 40% for business, you can only deduct 40% of the actual expenses.

The standard mileage rate allows you to deduct a set amount per mile driven for business. The standard mileage rate for 2023 is 65.5 cents per mile. 

25. Meals and entertainment

Meals and entertainment expenses are partially deductible. You can deduct 50% of the cost of meals and entertainment if they are related to your business. Note that this changed during COVID-19, when you could deduct 100% of meals for 2021 and 2022. Entertainment expenses are no longer deductible after the 2017 Tax Cuts and Jobs Act.

26. Depreciation

Depreciation is the process of deducting the cost of a business asset over its useful life. This is typically used for equipment and other assets that have a useful life of more than one year. For example, if you buy a camera for $1,000 and it has a useful life of 5 years, you can deduct $200 per year for 5 years. However, you can also use Section 179 to deduct the full cost in the year of purchase. 

27. Mortgage interest

If you own your home and have a mortgage, you can deduct the interest on your home loan. Note that this is only partially deductible based on the percentage of your home used for business if you are claiming the home office deduction. 

Other deductions

28. Qualified Business Income (QBI) deduction

If you are self-employed, you may be eligible for the Qualified Business Income (QBI) deduction. This deduction allows you to deduct up to 20% of your qualified business income from your taxes. Note that there are income limits and other restrictions on this deduction. Learn more about how the QBI deduction works for creators.

29. Self-employment tax deduction

If you are self-employed, you must pay self-employment tax, which includes Social Security and Medicare taxes. However, you can deduct half of the self-employment tax from your income. 

30. Startup costs

If you are starting a new business, you can deduct up to $5,000 in startup costs in the first year of business. Startup costs include market research, legal and accounting fees, and other costs related to starting a business. 

31. Sponsored content creation costs

If you create sponsored content for brands, you can deduct the costs associated with creating that content. This includes equipment, software, and other expenses related to the sponsored content. 

Keeping records

To claim tax deductions, you’ll need to keep accurate records of your business expenses. This includes receipts, invoices, and bank statements. You should also keep a log of your business activities, such as the purpose of a business trip or the nature of a business meal. 

Here are a few tips for keeping records:

• Use a separate business bank account and credit card for business expenses.
• Save all your receipts, either digitally or in a physical folder.
• Use accounting software to track your income and expenses.
• Keep a log of your business activities, such as a mileage log or a meal log.

With good record-keeping, you’ll be able to claim all the deductions you’re entitled to and minimize your tax bill. 

Summary

Tax deductions for content creators and influencers include equipment, software, home office, internet, phone, social media management, content subscriptions, professional services, subcontractors, marketing, education, industry events, business insurance, business banking fees, gifts, dues and subscriptions, retirement contributions, health insurance premiums, business travel, PR services, legal and accounting fees, office supplies, shipping and postage, music licensing, vehicle expenses, meals and entertainment, depreciation, mortgage interest, qualified business income (QBI) deduction, self-employment tax deduction, startup costs, and sponsored content creation costs.