YouTube has made it possible for anyone to become a star and earn real money (Remember the Korean guy, Psy?). So you might very well be one of the many people who make money through your YouTube channel.
If you earned at least $600 last year, you should be receiving a Form 1099 soon if you have not already.
My name is Darrin T. Mish, and I’m the IRS Solution Attorney, What I’m about to share with you could save you some of that money you earned for yourself.
Look at Your Earnings as Business Earnings
If you have to declare your income and pay tax on it, you should claim for deductions as well. Here are some of the tax deductions you are entitled to claim for your YouTube and other videos’ income.
Equipment Depreciation
You are allowed to deduct depreciation as an expense for your video equipment. If you decide to claim for depreciation, we can help you calculate that figure. Call the Law Offices of Darrin T. Mish, P.A. at (813) 295-7648 for a free consultation.
Video Production and Editing Software
Another type of deduction that is certain to apply to every video creator is the purchase of video production and editing software. You should invest in some quality professional software instead of free ones like Windows Movie Maker and deduct the cost of it from your taxable income.
Data Storage
As you make more and more videos, you will require storage space, usually cloud-based storage. This business-related expense is also tax deductible.
Home Studio and Office Space
If you shoot your videos indoors, you likely have a studio that may be part of your home converted for such use. You can claim expenses related such use, for example, phone calls made from a phone inside your office or studio. It must be used exclusively and regularly for your video business. So if you have a home studio, make sure that it is used solely for business.
Cell Phone Usage
If you have a cell phone you use for business; you can deduct the phone bill in your tax calculations. Once again, you have to make sure it is used exclusively for business.
Travel Expenses
If you travel anywhere to shoot your videos or only to pick up supplies, as long as it’s for business you are entitled to claim deductions. Make sure you keep receipts for every expense.
Advertising
As in any business, you should advertise yourself especially since you can claim the cost of publicity as a tax deduction.
Conferences and Seminars
If you attend conferences or workshops to improve your video-making skills, you should claim tax deduction not only for the conference fees but also other incidental expenses such as hotel accommodation, airfare, cab fare, and meals.
If any of these apply to your video income, you should consider claiming such expenses from your taxes. If you have any questions, feel free to call us at (813) 295-7648 for further advice.