"Isn't it fascinating? A significant 40% of social forum users are now embracing the role of digital creators, finding a unique way to earn while simply being themselves. Among them, some are not just receiving applause and congratulatory badges but also cashing in on platforms like Facebook, Instagram, etc. It's a trend that's gaining momentum!
The IRS taxes every income, and this won't be an exception. I write this blog to address the tax implications that some of us may not have considered. First of all, my reader, congratulations on being a digital creator and cashing in on it. I wish you all the success in your endeavors. I am not here to discourage your pursuit but to offer you tips that will help you keep the money you deserve. Nobody should pay more than their fair share of taxes!
One thing to keep in mind is, once your earnings cross the $600 mark, expect a 1099 form to land in your mailbox around Jan 31, 2024, as tax season starts.
Even if you hadn't considered your digital creation as self-employment, the IRS certainly does. That's right; they view it as a form of self-employment.
The silver lining? The IRS allows deductions for costs incurred while generating self-employment income. That means every piece of equipment, including that trusty selfie stick, part of your phone bill, and any out-of-pocket expense you incur in your digital creation pursuits can potentially be a deductible expense!
The main point of sharing this with you is to let you know you can deduct any expenses you incur. Maintain good records of all the gear you've purchased because of your digital creation pursuits. Come tax season, these records can work wonders in reducing your tax burden and ensuring you get to keep more of your hard-earned money. You need a good record of your expenses so that you have something to back up all the deductions you will take against your digital creator income.
My team helps many in your position; reach out at 205-216-5481 if you need help!"
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