Want to be a content creator? You could make money - but there are specific IRS tax rules to follow if you do. Here's what you must report and why

The IRS treats most influencers, streamers and creators as self-employed. That means taxes aren’t automatically withheld from payments, and the rules can be more complex than a traditional W-2 job.

“Being self-employed introduces complexity compared to reporting W-2 income as an employee,” Richard Pianoforte, managing director of tax at Fiduciary Trust International, told USA Today (1).

“Numerous deductions are available, and determining the value of products received is not always straightforward.”

When content creation becomes a business

If you’re earning money from brand partnerships, sponsorships, affiliate links or ads, that's generally considered taxable income.

According to the IRS, self-employment income includes money earned from operating a trade or business as a sole proprietor or independent contractor, and must be reported on your tax return (2).

And that income isn’t limited to cash. As USA Today notes, you also have to report your income from ad revenue and brand-sponsored posts. You also have to report the fair market value of free items you receive for revenue.

Barter arrangements are, too. If you exchange services for goods — say, photography for hotel stays — both sides must report the fair market value of what they received, under IRS barter rules (3).

Creators earning $600 or more from a brand or platform should receive a Form 1099-NEC. But even if you don’t receive a form, you’re still required to report all income.

Unlike traditional employees, self-employed workers must also pay a 15.3% self-employment tax on net earnings to cover Social Security and Medicare (4).

Taxes in the U.S. operate on a pay-as-you-go system, which generally requires quarterly estimated payments if you expect to owe $1,000 or more (5).

Legitimate deductions for content creators

The flip side of being self-employed is access to business deductions, as long as you follow IRS rules.

Self-employed individuals can deduct half of their self-employment tax when calculating adjusted gross income.

The IRS allows deductions for expenses that are “ordinary and necessary” for your trade or business. “Ordinary” means common and accepted in your field; “necessary” means helpful and appropriate (6).

For creators, that could include:

• Cameras, lighting equipment and microphones used specifically for content
• Editing software subscriptions
• A portion of your cellphone and internet bills used for business
• Travel costs directly tied to content production

If you work from home, you may also qualify for the home office deduction — but only if part of your home is used regularly and exclusively for business.

And there are limits. Clothing you can wear outside of work is generally not deductible, even if you bought it for filming. Personal grooming — like haircuts — typically doesn’t qualify. The IRS draws a line between business expenses and personal living costs.

One key distinction is whether your content is a business or just a hobby.

The IRS makes clear that hobby income is taxable, but hobby expenses are generally not deductible.