Everyone dreads tax day, especially creators. But here are 4 tips to make it easier: 1) Have a Vendor Onboarding Process For every vendor: - sign contracts to make sure you own the work product - collect banking info and require invoices to track payments - collect W9s and W8Ben forms to send 1099s easy Pro tip: avoid your personal Venmo. I use Melio to pay quickly and tie invoices to expenses. 2) Be Educated on Valid Deductions Some creators miss out on deductions while others abuse them. The key is to be reasonable. Last year, creator Ali Spagnola asked to write off sex toys, 40 lbs of cotton candy, 15000 lego pieces and a baby grand piano. Many of these would not pass an IRS reasonability test. Here are things you can deduct: - Clothing, hair & makeup, props related to specific shoots - Giveaway prizes - Camera gear & other studio equipment - Studio rent or a portion if you film from home - Editing software - Health insurance 3) Keep Up with Bookkeeping Having your bookkeeping done will make taxes a breeze. You'll know what you owe before even starting. Tracking expense categories has allowed me to keep a close watch on our expenses and actually lower our video costs by 50% :). Pro tip: outsource your bookkeeping then review monthly. 4) Find Ways To Lower Your Tax Bill - Make over 100K? You'll save more with a S Corp than a LLC. - Contribute to a Roth IRA, SEP IRA, or use a Backdoor Roth strategy to offset your tax bill. Taxes for creators is just like any other business. We just need to pay attention to it like we do our views and comments. And with that, I leave you with a meme post from none other than the IRS 🤣
Jon Youshaei
3mo
Well said 🙌 thank goodness we got you leading this for our team
Amanda Martin 🌶️
3mo
SPICY! I was not expecting this kind of post from the IRS. It's definitely eye-catching. 😂 Thank you for sharing these useful tips!
Sr. Product Manager @ Kaseya | 2X Failed Founder | ex-JPM
3moAll great advices! quickbooks for keeping track of everything .