5 Things That ‘Suck’ About Being a YouTuber [Guest Post]

2. The taxes suck. Like really, really suck.

guest-2

Amidst everyone singing the joys of tax returns most of us filing a 1099 this year will be grimacing every day until April 15th. I’m always surprised to see how little attention this gets, but 1099 income is taxed at a much higher rate than its 1040 counterpart. Not only will you pay all of your normal federal and state level taxes but you will also be responsible for self employment tax and the portion of Social Security and Medicare taxes your employer traditionally pays. Couple this with no health insurance or an employer-sponsored 401k retirement plan, self employment off your YouTube channel can be very expensive. Many YouTubers may not even be aware of their tax obligations until they are audited by the IRS and find that they owe a small fortune in back taxes.

However, there are some benefits — self employment does allow for a large amount of write-offs. Take detailed account of all your travel and business expenses, and keep them around for at least three years in case you are subject to an audit. Write-offs include: home office space and utilities, video and electronic equipment, travel expenses, and even meals taken on business trips. Anything you use to create your videos can be counted as a business cost — but keep those receipts!

Comments are closed.