Earning a living on YouTube isn’t an easy task. If you are one of the few who does this full time, then you probably worked hard to get to that point. After all, not everyone makes it to this point and earns enough money to quit a regular job.
You probably want to make sure that you get to keep as much of your income as possible, which means reducing the amount of taxes you pay. Of course, you have to report all of your income from all sources, which could be a substantial amount. You could employ numerous strategies to reduce your tax liability, and one of them is to maximize your deductions.
Do you know what deductions you can take?
As a YouTuber, you have numerous deductions you could take advantage of if they fit your situation such as the following:
- You can deduct the purchase of a computer you use to edit and upload your videos.
- You can deduct the purchase of the equipment you use for filming your videos.
- You can deduct the cost of your cell phone, but only for the percentage of time you use it for YouTube. For example, if you use your phone 60% of the time for your work, you can deduct 60% of its cost.
- You can deduct the cost of your internet service since it is vital to your work as a YouTuber. Like your cell phone, you can only deduct the percentage of time you use it for work.
- Any materials or supplies you purchase for your videos could qualify for a business tax deduction. For example, if you review products, you could deduct the cost of the products and provide the IRS with information regarding the video it related to.
- You can deduct expenses for your home office. For example, if your office makes up 10% of your home, you could deduct 10% of your monthly rent.
- If you employ someone else to handle certain aspects of your YouTube work, you could deduct the money you pay that person, but you need to make sure you provide a 1099 to him or her if the amount is over a certain amount.
- You could deduct certain local, national and international travel expenses as well.
- Any software licensing or subscriptions you have that you use for your YouTube business may qualify for deduction.
In order to make sure that you make the most of your deductions as a YouTuber, you may want to consult with a Missouri tax attorney. You work hard for the money you make, and you should have the chance to keep as much of it as possible.