Can Someone Simplify In Layman's Terms On How To File Taxes As A Youtuber?

Submitted by Silver0PK0Power t3_11e9jjp in personalfinance

I've been thinking about starting a channel for sometime now but I'm at a complete loss on how to file my taxes as a contentment creator. (Is there even an option for that in TurboTax?)

I recently read this article from this IRS website, but even afterword's I was only able to understand a handful of the information given.
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

Could someone maybe explain this in a simpler way for someone to easily understand?
Maybe write it in dotted steps or link a video?

I really need to know this before I move forward with anything-

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Its-a-write-off t1_jacul1a wrote

If you are running this as a profit motive endeavor without significant personal enrichment, then you are self employed. Small business. That's the section you use on TT.

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Silver0PK0Power OP t1_jaef6lj wrote

Any other details I need to know about?

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Its-a-write-off t1_jaesq4s wrote

My opinion, don't start deducting expenses until you have moved from hobby to business.

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MilkCartonDandruff t1_jacvwco wrote

I wouldn't do anything until you start making money.

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DeluxeXL t1_jacw7r9 wrote

You can have deductible net operating losses when you are starting out.

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Engineer-Daddy t1_jaczq2m wrote

But Youtube only monetizes people with certain amounts of views. How would you prove to the IRS that you are running a legitimate business vs. some guy who just tricked his room out for gaming?

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Silver0PK0Power OP t1_jaefb7x wrote

I read somewhere that you need to file something down even if it’s your first year-

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altmud t1_jacwdrq wrote

I'm curious what a "contentment creator" does, lol, sounds like an interesting job.

Anyway, the first thing to determine is whether your activity is a "hobby" or a "business". The IRS has various rules for determining that. If it is a "hobby", your taxes will be very simple. If it is a "business" they will be more complex, and probably too much to put into a post here -- there are many websites with articles for self-employed persons.

https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

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Silver0PK0Power OP t1_jaefnyv wrote

It’s meant to be a simple hobby, like a part-time job.

However I do hope to turn it into a business one day.

Anymore info I should know?

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altmud t1_jaehkn4 wrote

A "hobby" and a "part-time job" are two different things. You need to decide which it is. More specifically, what it is right now, this tax year (or last tax year, whichever you're talking about).

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DeluxeXL t1_jacwnm9 wrote

Read the Self employment wiki. Record keeping is important when running a business. Use a dedicated bank account and keep detailed records.

Turbotax might charge you more for having a business, so look into other options in the tax software megathread.

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Silver0PK0Power OP t1_jaefyxh wrote

I’ll look into the wiki, although if I struggled with the IRS page idk how this can give any better result.

Thank you for the link-

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