A Quick Note Before We Start

I am talking mainly about U.S. federal rules. States layer on their own tax rates, estimated payment schedules, and sometimes sales tax rules for merch or digital goods, so always check your state before you file.

You make videos, streams, posts, newsletters. That is the fun part. The less fun part is that the IRS treats you like a business. Your income is taxable, self-employment tax often applies, and you probably owe quarterly payments. None of that is meant to scare you. The rules are learnable, and once you have a system, tax season turns from chaos into a checklist.

What Counts as Income?

All of it. Ad revenue, Shorts or Reels funds, tips and donations, affiliate links, brand deals, UGC, consulting, digital products, subscriptions, merch. Even non-cash perks can be taxable if they are in exchange for work, so track fair market value when that happens. It does not matter if you never receive a 1099 or if a client pays under 600 dollars. You still report it.

One thing to note is that under the 2025 One Big Beautiful Bill Act, qualified tips up to $25,000 can be deducted, with these deductions phasing out above certain income levels. Importantly, this income is still reported. However you may be able to reduce your taxable income and save significant money as a creator. Read more here: The One Big Beautiful Bill

Core Tax Forms You Will See

Most creators file Form 1040 with Schedule C for business income and expenses, plus Schedule SE for self employment tax. You might receive a 1099-NEC from brands or clients and a 1099-K from payment processors or platforms. These help you reconcile, but your books are the source of truth, not the forms. If you pay U.S. contractors $600 or more, collect W-9s and issue a 1099-NEC to them by January 31.

Self Employment Tax and Quarterlies

If your net self employment income is over $400, you likely owe self employment tax of 15.3%¹ on top of income tax. Half of that SE tax is deductible on your 1040, which helps a bit. The IRS also expects you to pay as you earn. That is where quarterly estimated payments come in. Federal due dates are usually April 15, June 15, September 15, and January 15 of the following year. Some states use different patterns, so confirm locally. Safe harbor rules let you avoid penalties by paying at least 90% of the current year tax or 100% (or 110% for high income earners) of last year’s tax.

How much to set aside: a simple starting point is 25% to 35% of your gross income. If you live in a high tax state or your income is climbing fast, lean higher.

Deductions That Matter

You can deduct ordinary and necessary expenses for running the business. When something is mixed use, deduct only the business portion and keep a note on how you calculated it (like WiFi). Keep receipts or bank records and a short business purpose note (especially on any purchase over $75). It is basic, but it is the engine that lowers your bill.

Home office deduction: if a space is used regularly and exclusively for the business and is your principal place of business, you can take the simplified method or calculate actual costs. The simplified method is quick. Actual cost can be larger if your rent and utilities are high. Pick the one that yields a better result and keep the square footage and photos in your records.

Travel and meals: document the business purpose. Save itineraries, invoices, and a quick note about who and why. Mileage requires a log if you use the car for both life and work.

Health insurance: if you buy your own coverage, you may deduct those premiums. It sits outside Schedule C and reduces your adjusted gross income.

Top categories for creators:

• Production gear and electronics
• Software and SaaS
• Props and set materials
• Domain and hosting
• Email platforms
• Advertising
• Internet and mobile service business portions
• Office supplies
• Legal and accounting
• Insurance

Your Entity Choice, in Plain English

Most creators start as sole proprietors or single member LLCs taxed the same way. LLCs add a liability shield but do not change write-off eligibility by themselves. Once profits get into mid five figures, some creators switch to S corporation status to split income between salary and distributions. Only the salary is subject to self employment tax, which can save real money if done correctly. It adds payroll and compliance, so fun the math and talk to a pro before you file the election. Also, stay out of “hobby” territory by operating like a business and aiming to show a profit more years than not.

The 20% QBI Deduction

Many pass-through businesses get a deduction of up to 20% of qualified business income. It reduces taxable income, not self employment tax. There are thresholds and extra limits for certain services industries and higher incomes. If you qualify, it is one of the biggest single levers for lowering your bill. Use Form 8995 or 8995-A as required and keep an eye on your taxable income near the thresholds. For more info on QBI, read our blog all about it: The QBI Deduction

Records That Save Future You

Open a dedicated bank account and card for the business. Connect platforms and processors to a single ledger so every payout and fee lands in one place. Categorize expenses into Schedule C buckets as you go. Keep digital copies of receipts, invoices, contracts, and mileage logs. This reduces prep time, avoids missed write-offs, and shows the IRS you are running a real operation if questions ever come up.

Beluga can help with exactly this! We make it easy to manage your tax responsibilities so you can focus on creating rather than stressing over taxes.

Your Annual Calendar

• Jan 31: Issue 1099-NEC to U.S. contractors you paid $600 or more in the previous year
• Mar 15: S corp return due, if that applies to you
• Apr 15: File 1040 or ask for an extension for the previous year, and pay your first estimate for the current year
• Jun 15: Second estimate due
• Sept 15: Third estimate due
• Jan 15 (next year): Fourth estimate due

Always check current year calendars in case a date falls on a weekend or holiday, and verify when estimated payments are due for states as they may differ from the federal calendar.

Common Mistakes to Avoid

• Treating income under $600 as tax free. It is not. Report everything.
• Waiting until April. This will lead to more time and headache as you try to remember what transactions were 6 months ago.
• Mixing personal and business money. It makes audits harder and the risk that the IRS classifies your business as a hobby higher.
• Skipping quarterlies and hoping it works out. Penalties plus stress is a bad combo.

Bottom Line

Creator taxes are not a mystery, but it is a lot. You report all income, you claim every legitimate expense, you pay quarterlies on time, and you keep clean records. Pick an entity that matches your stage. Use the QBI deduction if you qualify. Keep your state rules in view. Do those things and you will keep more of your hard earned money and make tax season a breeze.

If you want help tracking the moving parts, Beluga handles the myriad of tax rules so you are not guessing at the end of the year. That leaves you with more time for the part that actually matters: making amazing content.

Keep on Creating!

— The Beluga Team