Influencer tax rules: A guide for TikTok, Twitch, and other creators

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Ditching your day job to become a full-time fashion influencer on Instagram or video game streamer on Twitch may seem like a pipe dream. The average content creator takes six-and-a-half months to earn their first dollar, according to data analytics company Demand Sage. Only about 4% of creators worldwide earn more than six figures, according to a 2023 Goldman Sachs Research report.

No matter how much you earn monetizing your content, expect to pay taxes on your profits. The Internal Revenue Service (IRS) generally considers influencers and digital creators self-employed. That means you’re responsible for withholding money from your earnings, but it can also carry some sweet deductions. Let’s break down what all that means for you at tax time.

Virtually any type of money you earn is taxable. Content creator income is no different. Here are some common sources of content creator income (with examples) that you’ll need to report to the IRS:

Ad revenue: You earn revenue through YouTube’s Partner Program, Facebook Reels ads, or display ads on your blog.
Brand sponsorships: A brand pays to create an Instagram story, TikTok video, or blog featuring its product.
Subscriptions: You sell subscriptions to exclusive content on your Substack newsletter, Patreon, Twitch livestream, or OnlyFans page.
Merchandise sales: You sell branded merchandise, like clothing or lifestyle products, on your social media channels or website.
Affiliate commissions: You participate in programs like Amazon Associates and earn a commission when someone buys a product through your TikTok, Instagram, YouTube, or blog.
Donations and tips: You earn “donations” and tips for creating custom OnlyFans content that a viewer requests or from Twitch Bits during a livestream.

Even nonmonetary gifts, like a piece of branded swag a company sends you or a meal that’s comped, can be considered taxable income if there’s an expectation that you’ll perform a service (like promoting the brand) in exchange for receiving it. Generally, creators need to report anything they receive that’s valued at $100 or more.

Whether you consider yourself an influencer, a content creator, a podcaster, a livestreamer, or a blogger, the IRS probably considers you self-employed. That means you’re responsible for paying federal income taxes on your profits, plus any applicable state and local taxes.

You’re also on the hook for self-employment taxes, also known as Social Security and Medicare taxes. Because you’re paying both the employee’s and employer’s share, these taxes usually amount to 15.3% of your income versus 7.65% when you’re a regular W-2 employee.

Creators often receive the following tax documents to use in preparing their returns:

Form 1099-NEC: Companies use this form to report payments to freelancers and independent contractors. You may receive this form from platforms you earn money on, as well as from any brands you work with. For 2025 (applies to returns due April 15, 2026) and previous years, you should receive a 1099-NEC from any company that paid you more than $600. The reporting threshold increases to $2,000 for 2026 and will be indexed for inflation in future years under the One Big Beautiful Bill Act.
Form 1099-K: Third-party payment platforms, like Venmo or PayPal, and online marketplaces, use this form to report payments you receive. They’re required to send you Form 1099-K if your payments exceed $20,000 across at least 200 transactions. You’ll also get a 1099-K if you’re paid by credit card, debit card, or gift card, regardless of the amount.

Sometimes you’ll get both forms for the same income, like when a client pays you via Venmo. Make sure you keep good records of invoices and payments, so you don’t end up paying taxes twice on the same income.

The tax deadline is April 15 for influencers (and everyone else). But you can’t just wait until you file your return to pay your tax bill for the entire year. If you earn significant income as an influencer or creator, you’re probably required to make estimated quarterly tax payments in January, April, June, and September each year.

You’ll need to calculate and then report your net profit or loss using Schedule C. Then, you’ll calculate your self-employment taxes using Schedule SE. You’ll attach both forms to your 1040 if you’re preparing a paper return. But tax-filing software makes the process a lot easier, and many have versions designed specifically for self-employed individuals and small-business owners.

One of the nice things about being self-employed is that you qualify for tax write-offs not available to people who work regular jobs. Below, you’ll find some examples of business deductions you may be able to claim as a digital creator or social media influencer:

Home office deduction if you use a space exclusively for business, including space you use as a studio
Clothing and makeup if you purchase items exclusively for shoots and promotions
Some business travel, though it gets fuzzy if you’re traveling for both business and pleasure
Up to 50% of business meals, but the meal must be prepared by a restaurant and can’t be “lavish or extravagant”
Business fees, including fees and commissions you pay to platforms
Marketing expenses, including paid social media ads and costs related to collaborations
Equipment, software, and supplies, but if it’s for both business and personal use (say, a laptop, phone, or camera), you can only deduct the portion you use for business

Creators may qualify for additional tax breaks, like deducting health insurance premiums and the Qualified Business Income (QBI) deduction. Sometimes, business deductions can get complicated, so check with a tax professional if you’re not clear on what’s allowed.

Does ‘no taxes on tips’ apply to content creators?

Yes, digital content creators are included in the list of roughly 70 occupations that qualify for the new “no taxes on tips” deduction introduced in the One Big Beautiful Bill Act. You can deduct up to $25,000 in tips for tax purposes, but if you’re self-employed, the deduction can’t exceed your net income for the year.

The deduction phases out if your modified adjusted gross income (MAGI) is higher than $150,000 for single filers and $300,000 for married joint filers.

The IRS allows you to report a business loss if your expenses exceed your income. Suppose you’re an aspiring travel influencer and spent $5,000 on photography equipment and editing software, but you only earned $2,000 in sponsorships. You could report the $3,000 as a loss to reduce your taxable income.

But if you don’t show a profit in three of the past five years, the IRS may consider your influencer gig a hobby. That means you wouldn’t be allowed to deduct business-related expenses in future years.

Do content creators have to pay taxes?

Yes, content creators are usually responsible for paying federal income taxes and self-employment taxes. Depending on where they live, they may also pay state and local taxes.

TikTok issues a 1099-K if you’re a TikTok Shop seller whose gross payment volume exceeded $20,000 across more than 200 transactions for the year. However, you’ll still need to report earnings from your shop even if your sales volume didn’t hit these thresholds. If you make money on TikTok from things like brand sponsorships and affiliate commissions, the companies you work with will probably issue you a 1099-NEC.

You’re responsible for reporting any income you earn on OnlyFans and other platforms, regardless of the amount. If you live in the U.S., OnlyFans will issue you a 1099-NEC if you earned and withdrew more than $600 on the platform during the tax year.