Rock Solid Tax Deductions a Social Media Influencer or Blogger Can Use Save Big On Their Taxes.

So you’ve decided to take the plunge and start a lifestyle blog or start a TikTok or Instagram channel as an influencer!  It’s a great endeavor and if done right, can be really lucrative!  But what about all the nuts and bolts of running an influencer business?  What tax deductions can an Influencer or Blogger take?

As an influencer, you might be wondering what expenses you can write off. Generally speaking, any money you spend in an attempt to make more money is considered deductible.  Understanding the types of tax deductions available to Influencers and Bloggers can be challenging, but it is an important part of managing your finances as an influencer. In this blog post, we will explore tax deductions for influencers, including what they are, why they are important, and how to claim them.

What are Tax Deductions?

Let’s start with something other Tax Dudes (or Dudettes.  Or is everyone a Dude now, kinda like an Actor/Actress?) don’t usually discuss.  Direct and Indirect expenses.  Both of these deductions can be claimed by individuals, including influencers, who have legit expenses related to their work.

What makes Direct and Indirect Expenses Different?

Ok.  So direct expenses are easy to identify.  You need various microphones and a good camera to make your videos.  You only use this equipment for your Vlog.  That’s a direct expense.

An indirect expense is a little more complicated.  Generally the biggest indirect expense you may have is either your car, or your home office.  Generally, your car and your home are going to be used both personally and for business.  The best advice I can give regarding indirect expenses is to track them all and based on this data, you’ll be able to come up with a percentage used for business.

Let’s use your car as an example.  You track all mileage driven during the year and see that you drove 5,000 miles for business and 10,000 miles for personal reasons.  Math tells us that ⅓ of your vehicle costs for the year should be deducted on your taxes (5,000/1 divided by 15,000 equals 33.33%).

Why are tax deductions important for influencers?

Tax deductions are important for influencers because they can help to reduce the amount of tax they owe. By deducting eligible expenses from their taxable income, influencers can lower their tax bill and keep more of their hard-earned money. Additionally, tax deductions can help to keep an influencer’s finances organized and can make it easier to file their taxes each year.  By understanding that you will have both direct and indirect expenses, you will be able to convert what was a personal expense but is really a business expense into a deduction, thus saving money on taxes!

What tax deductions are available for influencers?

As an influencer, there are a variety of tax deductions that you may be eligible for. The following are some of the most common tax deductions for influencers:

1. Home Office Expenses

If you use a portion of your home exclusively for work, you may be able to deduct certain expenses related to your home office. These expenses can include rent (or mortgage interest, property taxes and insurance), utilities, and other costs required to maintain your home office.  If you live in a 1,000 square foot home and your office is in a 10×10 room, you’ll be eligible to take 10% of your total occupancy costs as a home office deduction.

2. Travel Expenses

If you travel for work, you may be able to deduct certain expenses related to your travel. These expenses can include airfare, hotel accommodations, meals, and transportation costs.  If the entire trip was for work (no pleasure.  You.  The IRS code talks about “Pleasure” you may derive from a trip) it’s fully deductible.

3. Advertising and promotion expenses

As an influencer, you likely spend a significant amount of time and money promoting your brand and products. You may be able to deduct expenses related to advertising and promotion, such as website hosting fees, social media advertising, and marketing materials.  I’d even toss the costs of generating organic traffic in here.  So if you’re paying someone for backlinks to your site, that’s a marketing expense.

4. Equipment and Supplies

If you purchase equipment or supplies for your work as an influencer, you may be able to deduct the cost of these items from your taxable income. This can include cameras, lighting equipment, computers, and other tools and supplies.  I’d put the cost of that rented Lamborghini and mansion you used to promote your “Make Money on the Internet” piece.  Remember, direct vs indirect.  These expenses were directly associated with something you did to make more money.

5. Education and Training

As an influencer, you may need to invest in education and training to stay up-to-date with the latest trends and techniques. You may be able to deduct the cost of these educational expenses from your taxable income.  And depending on your income, this will be a large expense.  With the internet (I’m looking at you, Google) constantly changing the way searches are done, keeping up with these trends is vital to your success.

6. Professional Fees

If you work with a manager, agent, or accountant, you may be able to deduct the fees you pay for their services. These fees can include commissions, retainers, and other professional fees.  Oh.  Make sure to pay your CPA well.  Direct costs, Baby!

7. Health Insurance and Retirement Plans

If you are self-employed, you may be able to deduct the cost of your health insurance premiums and Self Employed Pension (SEP IRS) contributions from your taxable income. This can include premiums for medical, dental, and vision insurance.  This doesn’t reduce your self-employment income, but does reduce your taxable income.

How to claim tax deductions as an influencer

To claim tax deductions as an influencer, you will need to keep accurate records of all your expenses related to your work. This can include receipts, invoices, and other documentation that shows the amount you paid for each expense. It is important to keep these records organized and up-to-date throughout the year so that you can easily file your taxes at the end of the year.

When it comes time to file your taxes, you will need to use IRS Form 1040 to report your income and claim any deductions you are eligible for. You can use Schedule C to report your business income and expenses, including any tax deductions you are claiming. If you are not sure how to fill out these forms, it may be helpful to consult with a tax professional who can guide you through the process.

Tips for maximizing your tax deductions as an Internet Professional

1. Keep Accurate Records

Keeping accurate records of your expenses is key to maximizing your tax deductions as an influencer. This can include everything from receipts for equipment purchases to invoices for promotional services. Make sure to organize your records throughout the year so that you can easily file your taxes at the end of the year.  For someone just starting out I suggest going and buying one of those accordion type storage files.  They have them that are divided up by month and are really convenient for just putting any receipts in the appropriate month folder for later categorizing.

2. Separate Personal and Business Expenses

Try not to commingle your business money with your personal money. This means having separate bank accounts and credit cards for your business expenses only using those accounts for business.  The better you can segregate your business vs personal expenses, the easier your bookkeeping will be. This yields accurate info and will make tax time easier.

3. Use Accounting Software

QuickBooks Online.  Being online allows you to “share” a login with your CPA or bookkeeper, which in turn allows for more current and accurate information.  I would also advise learning how to read your financial statements to get the most out of them.

4. Consult with a Tax Professional

I know it sounds self-serving and maybe even a little arrogant, but I think this is one area you should let someone else help you, via a bookkeeper (they should be able to classify your expenses properly) and a good tax person.  Tax rules are constantly changing. Many changes enacted in 2017 are going back to the way it was in 2026. I don’t see this changing, especially with the current political climate.  Remember, taxes (much like abortion, immigration and racial equity) are now political issues.  Let someone in the middle of all this nonsense help you.  It’ll be worth the money.

Conclusion

As an influencer, this is most probably NOT the stuff you want to do.  But keeping up with your recordkeeping is really essential to success.  By understanding the tax deductions available, you can maximize your deductions and keep more of your hard-earned money. Separate your personal and business expenses. Using accounting software like QuickBooks is a good idea. Consult with a tax geek (like me!) when you need guidance. By taking these steps, you can ensure that you are making the most of your tax deductions as an influencer.