Short, interesting piece on the INC magazine site on Tax Day about tax mistakes content creators and influencers make that has a bit of overlap for all creative and arts workers.
The first about realizing you are probably considered self-employed and need to be saving to pay taxes is pretty common and a tip I have heard given at conferences for decades. Early career artists have been overlooking that requirement for quite awhile.
Something I hadn’t known was that the IRS hold expenses related to personal appearance to a higher standard when it comes to writing them off as business expenses.
If creators ever wear clothes they bought for content on their own time, for example, they can’t write the expense off. Moore says creating separation is key here—which is why he advises a makeup artist client to store her personal and professional makeup in two different containers. That way, there’s no risk of personal and business uses overlapping.
I know many actors and other performers who may have inadvertently been in violation of this. Especially since actors will often be asked to provide many of their costume pieces. You’ll want to write off the expense to at least get a little bit of financial relief…but you also don’t want to let perfectly good clothing go to waste by not wearing them after the show is over.
Similarly, if you were allowed to take clothing home after a show, corporate gig, movie filming, etc., you may need to report that as income in addition to whatever you may or may not have been paid.
Here’s something most content creators probably don’t know: Sometimes, you need to report brand trips and gifts to the IRS. Moore and Gallegos say it depends on whether you received a “true gift” as defined by the IRS. If you did something for the brand—like post a TikTok video—in exchange for the product or trip, it’s not a true gift. It’s taxable income instead.
