Influencer Tax Write-Offs: Maximize Deductions 2025

Influencer tax write-offs are essential for reducing taxable income and maximizing deductions. As a social media influencer, you can claim various business expenses such as:

• Home office costs
• Advertising
• Travel
• Business-related education

The IRS allows influencers to deduct expenses incurred in their line of work, making it crucial to track all receipts and expenses diligently. Tools like Bonsai Tax can simplify this process by scanning receipts and identifying potential write-offs, potentially saving users an average of $5,600 annually. To optimize your tax savings, use tax software, keep detailed records, and consult a tax professional. Understanding and utilizing these deductions can significantly impact your financial health during tax season.

Taxes probably take a huge bite out of your income as a social media influencer. As a result, you'll often find yourself wondering how much of your income you can reduce through legal measures when tax season comes around.

The IRS considers a social media influencer or content creator to be a sole proprietor.

This means the IRS allows you to claim tax deductions on some of the expenses you incur in your line of business. In this article we'll look at some of the most popular influencer tax write-offs you can take advantage of when you file your 1099 taxes.

Note: If you would like software to track all your tax-deductible expenses, try Bonsai Tax. Our software can scan your bank/credit card receipts to discover potential tax write-offs, maximize your deductions, and lower your taxable income. In fact, users typically save $5,600 from their tax bills. Try a 7-day free trial today.

How do influencer tax write offs work?

Tax deductions reduce the amount of income that is subject to taxes, which in turn reduces your income tax bill.

Note that the amount of your deduction depends on the percentage of your business use of the asset. In other words, if you use a particular asset for business purposes only 50% of the time, you can only write off 50% of the cost associated with that asset when you pay taxes. If you are a tax preparer, read on and add these to your arsenal of writeoffs. Also, check out our comprehensive checklist to ensure a smooth tax season for your clients

What qualifies as tax deductible expenses for influencers?

Here are some of the most common tax write-offs for influencers:

Home Office Deduction

If you work from home, you're allowed to claim a home office deduction. This allows you to write off a percentage of your rent, mortgage interest, property taxes, qualified mortgage insurance premiums, and home insurance as business expenses.

There are a few things to keep in mind when claiming this deduction:

• Your home office needs to be your primary place of business, and you should only claim the area that you use exclusively for work.
• You'll need to add up all the costs related to your home office, such as rent, mortgage interest, insurance, repairs, etc. Then calculate the percentage of these expenses that relate to your home office.
• To claim a home office as a tax-deductible expense, you can either claim this using the simplified deduction method or an itemized deduction (by tracking actual expenses)

By claiming the actual expenses method, you'll be able to deduct things like homeowner insurance, other home office necessities, dedicated desk, water bill, and lamps. Use our free worksheet to track home office expenses.

If you pay rent, you could even claim the costs from your taxes.

Advertising and Marketing

Any costs associated with marketing and advertising your business can be deducted, including sponsored posts, Facebook ads, and Google Adwords.

Travel Expenses

Not only are flights - domestic or international - deductible, but so are any travel expenses related to business. This includes transportation costs (cars, taxis), lodging (hotels), meals and entertainment expenses. You can only claim these tax write-offs if they are incurred away from your "tax home".

You get business travel deductions for mileage on road trips related to influencer work. If you drive for work, keep track of miles driven. The standard mileage deduction in 2024 is 65.5 cents per mile. For example, if you drive 1,000 miles for work during the year, you can write off $655 on your taxes.

Just be sure to track your travel expenses and have detailed records to show the IRS.

Business-Related Education

If you are taking courses to improve your skills as an influencer, such as social media marketing or photography courses, you can deduct any associated education costs when tax season comes around. The money you spend on books, course materials, and transportation to and from the school can be written off.

Tax advice

Being an independent contractor offers several advantages. A tax advisor can help you optimize your 1099 independent contractor income tax deductions strategy. Tax code and tax rules are always changing. Hiring a certified public accountant helps you stay compliant with tax laws.

Hiring a tax advisor may seem like an expense, but their services can help you save money in the long run. Preparers assist with itemized deductions, estimate your real costs, and ensure you take advantage of all available tax breaks.

And the best part? You can write off their fees when you file your 1099 taxes.

Phone bill and internet expenses

As an influencer, you spend much of your time online. The IRS allows you to write off a portion of your phone and internet bills as operating expenses. Unless you have a phone exclusively for business, only the portion of your cell phone bill used for business or content creation is deductible.

Business Insurance

Business insurance covers you against unforeseen costs associated with workplace injuries or errors. A professional liability policy, for example, can reimburse you if a customer accuses you of falling behind schedule or making a mistake that creates a fee.

Any insurance premiums that you pay for your business (such as liability insurance) can be deducted from your taxes.

Office Supplies

This one is self-explanatory. Any office supplies that you purchase for your business can be deducted. They may include:

• Paper
• Ink cartridges
• Pens
• Notebooks

• Writing utensils
• Notepads
• Printer ink cartridges
• Paper, etc.

For example, if you're a blogger and you need to buy new computer equipment like a laptop, external hard drive, or memory cards, these can be deducted as well.

Meals and entertainment expenses

If you're out of town for a work-related meeting or conference, the costs of meals and entertainment are deductible. This includes restaurant bills and movie tickets. Keep your receipts.

The key here is that the meal has to be with a potential client, supplier, or other business contacts in order to qualify. Keep in mind that you can only deduct 50% of the meal cost.

Charity donations

Donating money or goods to a registered charity can result in a tax deduction. You must have written documentation from the charity with the name, date, and amount of the donation in order to claim it.

Website costs

As an influencer, you need a business website to promote your services and reach a wider audience. If you spend money building your website, the creation costs are tax-deductible. This means you can write off these expenses:

• Domain registration fees
• Website hosting
• Design and development costs
• Maintenance fees

• Theme costs
• Domain name cost
• Hosting fees
• Plugins cost
• The costs of any images you use

Note: Bonsai Tax can help you manage all your tax deductions in one place. We'll record all your content creations costs for you at the push of a button. The majority of our users save, on average, $5,600 from their tax bill. Try a 7-day free trial here.

Legal fees

You are allowed to deduct legal fees that are related to the management of your influencer business as well as deduct the costs for starting your business- this includes business formation, contract review, intellectual property advice, etc.

Clothing and Beauty Products

To look your best in the content you produce, you'll need clothing that makes you stand out. That said, any costs associated with purchasing clothing and products are deductible. This includes:

• Clothing
• Makeup
• Hair care products
• Accessories

• Fitness clothing for those workout videos
• Lingerie counts as a tax deduction for models or 1099 OnlyFans content creators
• Beauty products, including hair products and tools (sometimes even a haircut is deductible)

Giveaway Prizes

To attract more followers, you may have to offer prizes and giveaways. These costs are tax-deductible as well.

App fees

If you use any apps to help run your business, the fees for these apps are deductible. This includes social media management tools, tax accounting software, and more.

• Social media management tools like Hootsuite or Buffer
• Tax accounting software like QuickBooks or Bonsai Tax
• Content scheduling apps

Bank fees

It is a good idea to have distinct bank accounts and credit cards for your business. If your bank or credit card provider charges yearly or monthly service fees, transfer costs, or overdraft expenses, you can deduct them.

You can write off the amount you paid in merchant or transaction fees to a third-party payment processor, such as PayPal or Stripe. Note that fees associated with your personal accounts are not deductible.

Self-Employed Health Care Premiums

If you’re self-employed, you can deduct 100% of the health insurance premiums you pay monthly for yourself, your spouse, and your dependents, whether or not you itemize deductions.

Student Loan Interest

If you took out student loans to pay for your college education, you can deduct up to $2,500 in interest each year.

Annual depreciation

When you purchase any business-related equipment, it must be used for at least one year before you can write off the cost or depreciate the value. This will result in lower tax liability over time, as the equipment is worn out and used up (and as such, has less value).

IRA Contributions

Contributing money to an IRA is a great way to save for retirement while also reducing your taxable income. You can deduct the full amount of your contribution, no matter what tax bracket you're in.

Self-employment tax

As a 1099 contractor, self-employment taxes can often surprise you. You pay both the employee's and employer's share of Social Security and Medicare taxes, totaling 15.3% of your net business income.

You can calculate how much you'll owe in self-employment taxes here.

The IRS acknowledges that this isn't fair, so independent contractors are allowed to write off half of your self-employment tax. While it won't change the amount of self-employment tax you owe, it will lower your income taxes. (Self-employment tax and income tax are not the same.)

Some folks prefer to do taxes on their own to save money. If that's the case, a tax software may be cheaper. Read the pros and cons of tax software or accountants here.

Tips to take full advantage of influencer tax write offs

Taking photos and creating content can get expensive. Keeping track of these expenses can help you lower how much you need to pay Uncle Sam at the end of the year. Now that you know about some of the top tax write-offs for influencers, here are a few tax hacks to help make sure you reap the most tax benefits of them when filing taxes:

Keep track of operating expenses

The best way to make sure you don't miss any deductions is to keep track of all your business expenses. This can be done in a physical or digital expense journal, or even in an app like Bonsai.

Get receipts for everything

Whenever you make a purchase related to your business, make sure to get receipts and save them. This includes everything from stock photos to meals and entertainment. Then you can upload all of your saved receipts into a filing system that will organize everything for you.

Use tax software

If you have no idea how to go about claiming tax write-offs or are overwhelmed by the amount of information you need to keep track of in order to get every deduction that you're eligible for, then using tax software might be your best bet.

Tax software such as Bonsai Tax, for instance, can be a great way to help you accurately redeem your deductions and is an especially helpful tool if you file electronically. Users typically save $5,600 from their tax bill with our software. Try a 7-day free trial today and see how much you can save.

Keep track of mileage

The IRS requires that all self-employed workers keep detailed records of their business travel costs in order to be able to claim this deduction. While this includes airfare, train tickets, and car rentals, it also includes mileage.

While it's quite easy to track mileage by carrying a notebook and pen or using an excel sheet to track miles, there are also many apps that can help take some of the hassles out of this deduction.

Final thoughts

As a self-employed influencer, it's up to you to claim every deduction and tax credit that you're eligible for in order to reduce your taxable income. Remember, tax laws are always changing and it is important you stay up to date about tax information.

While this may require some time and effort on your part, taking the necessary steps is well worth it in the end when you get more money in your pocket at the end of the year.

Money management can make or break your influencing business, and it's crucial to save every penny. So, be sure to claim these 22 tax deductions in the 2024 tax year.

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FAQs on influencer tax write-offs and obligations

What expenses can influencers write off on their taxes?

Influencers can write off expenses that are ordinary and necessary for their business. Common deductible costs include:

• Equipment like cameras and lighting
• Software subscriptions for editing
• Internet bills
• Costs related to content creation such as props or wardrobe

For example, if you spend $1,200 on a new camera in 2024, you can deduct that as a business expense, reducing your taxable income.

Additionally, home office expenses are deductible if you use a dedicated space exclusively for your influencer work. This can include a portion of rent, utilities, and even depreciation if you own your home. Using the simplified home office deduction in 2024, you can deduct $5 per square foot up to 300 square feet, making it easier to claim without detailed calculations.

To maximize deductions, keep detailed records and receipts throughout the year. Use accounting tools like QuickBooks Self-Employed, HelloBonsai’s expense tracker, or FreshBooks to categorize and track these write-offs efficiently. This ensures you don’t miss any eligible expenses when tax season arrives.

How should influencers track income and expenses for tax purposes?

Influencers should track all income and expenses systematically to stay compliant and optimize deductions. The IRS requires reporting all income, including payments from brand deals, affiliate marketing, and platform earnings such as YouTube or TikTok revenue. Using separate bank accounts or credit cards for business transactions can simplify this process.

For 2024, many influencers use digital tools like QuickBooks Self-Employed, Wave, or HelloBonsai to automatically import transactions, categorize expenses, and generate reports. These platforms can also help estimate quarterly tax payments, which are crucial to avoid penalties if you expect to owe $1,000 or more in taxes.

Regularly reviewing your financial records and reconciling accounts monthly prevents surprises at tax time. Setting reminders to update your books weekly can save hours later and ensure you capture all deductible expenses accurately.

Are influencers required to pay self-employment tax?

Yes, influencers classified as self-employed must pay self-employment tax, which covers Social Security and Medicare contributions. For 2024, the self-employment tax rate is 15.3% on net earnings above $400. This tax is in addition to regular income tax and applies to most freelancers and independent contractors, including influencers.

To manage this obligation, influencers should calculate estimated quarterly tax payments using IRS Form 1040-ES. For example, if you expect to earn $50,000 from influencer work, you’ll owe approximately $7,650 in self-employment tax, plus income tax based on your tax bracket. Paying quarterly helps avoid underpayment penalties.

Using tax software like TurboTax Self-Employed or consulting a CPA familiar with influencer finances can ensure you correctly calculate and remit these taxes. Planning ahead for self-employment tax prevents unexpected bills and keeps your business financially healthy.

Can influencers deduct travel and meal expenses?

Influencers can deduct travel and meal expenses only if they are directly related to their business activities. For example, attending a brand event or traveling to a photoshoot location qualifies as deductible travel. Keep detailed records of transportation, lodging, and other trip costs incurred specifically for influencer work.

Meal expenses are deductible at 50% for business-related meals in 2024. If you meet with a brand partner over lunch to discuss a campaign, you can deduct half of that meal’s cost. However, personal meals or trips mixed with leisure cannot be claimed, so separating business from personal expenses is essential.

To claim these deductions accurately, keep receipts and document the business purpose of each meal or trip. Using apps like Expensify or the HelloBonsai mobile app can help capture and organize these expenses on the go, making tax filing smoother and more precise.

Home office deduction

qualifying for the home office deduction as an influencer

The home office deduction allows influencers to write off expenses related to the part of their home used exclusively for business. To qualify, the space must be used regularly and solely for work activities like content creation, editing, or managing social media campaigns. For example, a dedicated room with lighting and filming equipment can qualify, but a shared living room corner likely will not.

In 2024, the IRS requires that the home office be your principal place of business or a place where you meet clients regularly. Influencers who work from home and do not have a separate office can benefit from this deduction. Keep detailed records and photos of your workspace to support your claim in case of an audit.

Start by measuring your home office space to calculate the deduction accurately. This step is crucial because the deduction amount depends on the size of your workspace relative to your entire home. Using the simplified method, you can deduct $5 per square foot up to 300 square feet, or opt for the actual expense method to deduct a portion of rent, utilities, and maintenance.

how to calculate the home office deduction for influencers

Influencers can calculate the home office deduction using two methods: the simplified or the actual expense method. The simplified method allows a deduction of $5 per square foot, up to 300 square feet, making it easy to claim up to $1,500 without tracking specific expenses. This method suits influencers with straightforward home office setups.

The actual expense method requires tracking all home-related expenses such as rent, mortgage interest, utilities, internet, and repairs. You then deduct the percentage of these costs that corresponds to your home office size. For instance, if your office is 200 square feet and your home is 2,000 square feet, you can deduct 10% of your qualifying expenses.

Using tools like QuickBooks or Bonsai’s expense tracking feature can simplify this process. They help organize receipts and calculate percentages automatically, ensuring you maximize your deduction without errors. Choose the method that offers the highest deduction and fits your record-keeping style.

common mistakes to avoid with the home office deduction

A frequent mistake influencers make is claiming a space that is not used exclusively for business. The IRS disallows deductions for shared or dual-purpose areas. Avoid including spaces like kitchens or bedrooms that serve personal use. These claims can trigger audits and penalties.

Another error is failing to keep proper documentation. Influencers should maintain receipts, utility bills, and photos of the home office setup. Without proof, the IRS may deny the deduction during an audit. Use apps like Expensify or Shoeboxed to digitize and organize your documents throughout the year.

Finally, influencers sometimes overlook updating their deduction if their workspace changes size or usage during the year. Keep track of any modifications and adjust your calculations accordingly. Regularly reviewing your home office setup ensures you claim the deduction accurately and stay compliant.

Travel expenses for influencers

Which travel expenses can influencers write off?

Influencers can write off travel expenses that are directly related to their business activities. This includes costs like:

• Airfare
• Hotel stays
• Car rentals
• Meals
• Transportation

These expenses occur while attending events, creating content, or meeting clients. For example, if you fly to a brand collaboration event or stay at a hotel to shoot sponsored content, those expenses qualify as tax write-offs.

It’s important to keep detailed records and receipts for all travel-related costs. The IRS requires that these expenses be ordinary and necessary for your business. Personal travel mixed with business travel should be prorated; only the business portion is deductible. For instance, if you spend three days on a business trip and two days on vacation, only 60% of your travel expenses can be written off.

To maximize your deductions, use apps like Expensify or QuickBooks Self-Employed to track and categorize travel expenses in real time. This helps ensure you don't miss any deductible costs when filing your 2024 taxes.

How to document travel expenses properly for tax purposes

Proper documentation is essential to claim travel expenses as influencer tax write-offs. Always keep original receipts, invoices, and proof of payment for flights, hotels, meals, and transportation. Digital copies stored in cloud services like Google Drive or Dropbox can serve as backups in case physical copies are lost.

Additionally, maintain a travel log that details the purpose of each trip, dates, locations, and business activities conducted. For example, note that you attended a product launch or filmed content for a client on specific days. This log supports the business nature of your travel if the IRS requests verification.

Using mileage tracking apps such as MileIQ can simplify tracking car expenses when driving for business. These tools automatically record trips and categorize them, reducing manual errors and making tax filing easier in 2024 and beyond.

Common pitfalls influencers should avoid when claiming travel write-offs

One common mistake influencers make is mixing personal and business travel expenses without clear separation. The IRS disallows deductions for purely personal travel, so avoid claiming full expenses if part of the trip was for leisure. Always prorate expenses based on the business portion of your trip.

Another pitfall is neglecting to document the business purpose of travel. Without proper logs or receipts, the IRS may disallow your deductions during an audit. For example, claiming a hotel stay without noting the business activity performed there can raise red flags.

Finally, influencers should be cautious about extravagant expenses. While reasonable costs are deductible, excessively luxurious travel may attract scrutiny. Stick to standard airfare classes and hotel accommodations that align with your business needs to ensure your write-offs are defensible.