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Tax guide for YouTube bloggers: Here is how to determine your tax liabilities

The eyes of the IRS (Internal Revenue System) are glued to your income from all types of professions. This includes your income from your YouTube channel.

All YouTubers in the world have to pay income tax and self-employment tax. These taxes have been applicable since the middle of the 2021 summer. 

Many YouTubers worldwide still struggle to get the hang of taxes. They lack understanding of the way these taxes work and affect their income. 

Determining tax liabilities from YouTube income bamboozles them. 

Are you planning to vlog on YouTube to supplement your income? We encourage you to shape this thought into reality as soon as possible. 

We suggest you get the hang of YouTube taxes before you go ahead with your plan. 

Let us be the best tax guide for YouTube bloggers like you. 

Let us help you get the full bang of time and bucks you plan on spending to be a YouTube Vlogging star. 

Why do you have to pay these taxes?

Alan Chen

Free 30-Min Strategy Session

By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.

The Federal Government of the United States has introduced changes in Chapter 3 of the IRC (Internal Revenue Code) dedicated to “withholding of tax on nonresident aliens and foreign entities.”

How do these taxes affect your income? 

This is something you must understand before launching your YouTube vlogging journey. 

All YouTubers making money through content production are obliged to pay $15, or 24% tax, on the amount of income they earn from viewers based in the United States. 

Submission of tax-relevant information to Google on time is the wise thing to do. Failure to do so results in a hefty financial penalty in the form of a 24% tax on your worldwide YouTube income. 

What if you submit your tax information on time? 

You will still have to pay 24% tax on your YouTube income. 

Got confused? Don’t worry! 

This is why we want to be the best tax guide for YouTube bloggers like you. 

You will pay 24% tax only on the amount of revenue you will earn from views or viewers from the United States. 

You will not have to pay 24% tax on your worldwide YouTube income.

Under what circumstances will you pay $15 as a tax on your YouTube income?

You will reap this benefit only if the country of your residence is in the US Tax Treaties. 

When do YouTubers have to pay income tax and self-employment tax? 

YouTubers are obliged to pay self-employment tax for being self-employed individuals. 

The IRS expects you to pay income tax on the income your earn from US-based viewers through the following: 

  • Advertisement related views
  • YouTube Premium feature.
  • Super Chat feature.
  • Super Stickers feature.
  • Channel Memberships facility.

Do you think you will be able to avoid paying these taxes on your YouTube income? 

Believe it or not, you are under the wrong impression. 

The IRS has access to all types of data related to your YouTube income. 

You had better be ready to be audited. 

This audit could be expensive and a bolt from the blue on your worldwide YouTube income. 

You should know this! 

Content creators are obliged to pay self-employment tax for being self-employed. The IRS wants every self-employed individual earning more than $400 to file their income tax return. You should include Schedule SE in your return. 

The IRS allows self-employed individuals to deduct approximately 57% of their self-employment tax payments while filling out Form 1040. It depends on the amount of self-employment income a creator earns. 

Are you converting your YouTube journey into a corporation? Do you want to reduce your net profit? If your answer to these questions is yes, pay attention to your S Corp Savings and net profit reduction-related things. 

Things to do to understand how these taxes affect creators’ YouTube income:

  • Determine your business type. 
  • Keep every single receipt related to your income and taxes. 
  • Prepare your quarterly estimated tax. 
  • File your taxes regularly and on time. 
  • Pay attention to your YouTube tax deductibles. 
  • Learn about the difference between filing taxes and paying taxes on YouTube income. 
  • Understand the way quarterly taxes work for YouTuber content creators. 
  • Learn about the way you get form 1040 and 1099.
  • Learn about the way YouTubers should file taxes or report income. 
  • Send your tax information on time to Google. 

Do you still need help?  

You should get in touch with a professional tax guide for YouTube bloggers to determine, file, and report your taxes and income to seek a long list of benefits for their YouTube journey. 

Talk to our team for the best possible assistance.

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