What Can You Write Off as an Influencer?

As an influencer, you operate a business, often as a sole proprietor, meaning you are self-employed. This classification carries specific tax implications and opportunities. A significant advantage is the ability to deduct legitimate business expenses, which can directly reduce your taxable income. Understanding these deductions is crucial for managing your financial obligations and maximizing your earnings.

Understanding Deductible Business Expenses

To qualify as a deductible business expense, an item must meet the Internal Revenue Service’s (IRS) “ordinary and necessary” criteria. An ordinary expense is common and accepted in your industry. A necessary expense is helpful and appropriate for your business, though it does not need to be indispensable.

These expenses must be directly related to generating your influencer income and cannot be for personal use. If an item serves both business and personal purposes, only the business portion is deductible. This distinction ensures compliance with tax regulations and accurate financial reporting.

The IRS provides guidance on business expenses in publications like Publication 535, which clarifies what can be deducted and the rules surrounding these deductions.

Common Write-Offs for Influencers

Influencers incur various deductible expenses related to content creation and brand promotion. Equipment and technology are a substantial category, including cameras, lenses, lighting kits, microphones, computers, and editing software. These tools are essential for producing high-quality content, making their costs ordinary and necessary business expenses.

Content creation often involves purchasing props, backdrops, costumes, or products specifically for review or demonstration. If these items are primarily for business use and any personal use is incidental, their cost can be deducted. For example, a product bought solely for a review video is deductible, but one purchased for personal enjoyment with a casual mention in content is not.

Engaging professional services is another common deductible expense. This can include fees paid to agents, managers, legal counsel, accounting professionals for tax preparation and financial advice, or coaches and consultants who provide business guidance.

If you use a dedicated space in your home exclusively and regularly for your business, you may qualify for the home office deduction. This can be calculated using a simplified option, allowing a deduction of $5 per square foot for up to 300 square feet, resulting in a maximum deduction of $1,500. Alternatively, the regular method permits deducting a percentage of actual home expenses, such as rent, mortgage interest, utilities, and insurance, based on the portion of your home used for business.

Business-related travel expenses are deductible when you travel away from your tax home for work purposes, such as attending industry events, collaborating with other creators, or shooting content on location. This includes airfare, lodging, and transportation. Documentation, including the business purpose of the trip, is important for these deductions.

Vehicle expenses can be deducted if you use your car for business activities, such as driving to content shooting locations or business meetings. You can choose between the standard mileage rate or deducting actual expenses. For 2025, the standard mileage rate for business use is 70 cents per mile, which accounts for costs like gas, oil, and depreciation.

Marketing and advertising costs are also deductible, encompassing paid social media advertisements, website hosting fees, and domain name registrations. Education and training expenses, such as courses or workshops that enhance your influencer skills, are deductible. This includes learning new editing techniques, social media strategies, or business management skills.

Business insurance premiums, including liability insurance relevant to your influencer activities, are generally deductible. Bank fees associated with a dedicated business checking account can also be written off.

Business meals can be partially deductible if directly related to your business and not lavish or extravagant. You can deduct 50% of the cost of business-related meals, such as those with clients, managers, or during business travel. It is important to separate meal costs from entertainment expenses, as entertainment is generally not deductible.

Maintaining Proper Records

Meticulous record-keeping is important for substantiating all claimed business deductions. The IRS requires taxpayers to maintain adequate records to prove the ordinary and necessary nature of each expense. Keeping detailed records protects you in case of an audit and provides a clear financial picture of your business.

You should retain receipts, invoices, and bank statements for all business transactions. For vehicle expenses, a mileage log detailing dates, destinations, business purposes, and miles driven is necessary if you use the standard mileage rate. Digital records, such as scanned receipts or entries in accounting software, are acceptable and often more convenient than physical files.

Organizing these records systematically, whether through cloud-based accounting software or well-maintained spreadsheets, simplifies tax preparation. This practice allows for easy retrieval of information, ensuring you can accurately report all income and expenses.

Reporting Your Income and Expenses to the IRS

As a self-employed influencer, you are responsible for reporting your business income and expenses to the IRS. This typically involves filing Schedule C (Form 1040), Profit or Loss from Business, with your individual income tax return. Schedule C is where you itemize all your deductible business expenses, which are then subtracted from your gross business income to determine your net profit or loss.

Self-employed individuals are also subject to self-employment tax, which covers Social Security and Medicare taxes. This is calculated on Schedule SE (Form 1040), Self-Employment Tax. The self-employment tax rate is 15.3% on your net earnings from self-employment, consisting of 12.4% for Social Security and 2.9% for Medicare. You only pay this tax on 92.35% of your net earnings from self-employment, and you can deduct one-half of your self-employment tax when calculating your adjusted gross income.

Since taxes are not withheld from influencer income, you are generally required to pay estimated taxes quarterly throughout the year using Form 1040-ES. These payments help cover your income tax and self-employment tax obligations for the current tax year. The due dates for these quarterly payments are typically April 15, June 15, September 15, and January 15 of the following year, or the next business day if the date falls on a weekend or holiday. Failure to make timely estimated payments can result in penalties. You can file your taxes electronically, use tax software, or work with a tax professional to ensure accurate reporting and compliance.