The IRS has started the crackdown on content creators, auditing them and making them fill out tax forms. However, in the absence of their own form, they have come up with a form 1099-MISC, which they will give to those people or businesses. Here are some tax tips for content creators to help you with filling out your income tax return forms.
What tax forms do content creators receive?
Most people know about the W-2 form, which employees receive from their employers. It’s their second-to-last step toward filing taxes. But did you know that content creators like freelance writers and artists, photographers, and virtual assistants also receive tax forms? If you make more than $600 in a calendar year, you are classified by the IRS as a self-employed individual and therefore receive a 1099-MISC form or 1099 NEC Form at the end of the year. 1099 is just one of many tax forms that self-employed people must file, including Schedule C and Schedule SE.
Do influencers have to pay taxes on their gifts?
If you are a content creator, it’s tax time again. Time to pull out the receipts and tally up all the stuff you received during the previous year. Here are some tips to help you keep from getting penalized and to help you get that refund you deserve. Many gifts to content creators are not taxable as long as they are under a certain dollar amount. The IRS says that if you received gifts of “personal property” during the course of your business, you need to add up the total value of all gifts received, then divide it by the number of recipients and multiply it by the “applicable percentage”. The applicable percentage depends on who was giving the gift.
For example, if a parent gives a gift card to her son for his birthday, the son does not have to include the card on his tax return because it is considered a personal gift. But if the parent gave the gift card to a content creator who writes reviews about products he receives from the parent, the content creator would have to include the value of the gift card on his taxes.
Do content creators have to report taxable income?
If you’re a content creator, it’s important to understand how to report your income. Part of the reason is due to the fact that your income might not be reported through normal means. For example, as a content creator, you might have a regular job in addition to your freelance writing gigs. Don’t worry — it’s not as complicated as it sounds! If you fall under the category of self-employed (such as a freelance writer), you’ll need to report your earnings through Schedule C of your 1040. This will be your return for your business. As a content creator, you have to follow a lot of rules and regulations to stay on the right side of the IRS. There are a number of different ways to handle your taxes, but the easiest one is to take advantage of the Form 1099 Online tax preparer. Above are the tax tips for content creators We hope you found this blog post helpful Please visit Form1099Online for more information on how to file your taxes and stay updated on the latest tax news.