At what income level do you need to start doing the quarterly payments? I'm just starting out and made like $800 last year from my art channel.

The general rule is if you expect to owe $1,000 or more in taxes for the year (after accounting for any withholding from other jobs), you should make quarterly payments. At $800 total income, you're probably fine waiting until tax time, especially if you have another job with withholding. But as your content income grows, keep an eye on it. Many creators don't realize they need to start making these payments until they get hit with penalties. I recommend setting aside 25-30% of your creator earnings for taxes just to be safe.

You don't need to track each individual deposit for tax purposes. What matters is the total income for the year. However, keeping a spreadsheet of your deposits can help you reconcile your total earnings against what the platform reports. What I do is download the annual tax summary from Etsy, which shows gross sales, fees, shipping costs, etc. That's the document you'll use for your Schedule C, not your bank deposits (which won't show fees taken out).

This is actually really helpful - I had no idea about the quarterly thing. How do I figure out how much to pay each quarter if my income isn't consistent? My construction projects vary a lot month to month.

You have a couple of options for calculating your estimated payments. The safest method is paying 100% of your previous year's tax (or 110% if your income was over $150,000). This gives you a "safe harbor" from penalties even if you end up owing more. If your income fluctuates, you can use the "annualized income installment method" using Form 2210. This lets you make payments based on what you actually earned in each period rather than 25% each quarter. Most construction businesses have seasonal fluctuations, so this might work better for you. A good tax software or accountant can help you run these calculations.

Completely agree - especially for construction. My brother's construction company got hammered in an audit because they hadn't structured things correctly. Not worth the risk when you're dealing with this kind of money. A good tax attorney will save you way more than they cost.

Thank you for mentioning this! I had no idea about this rule. Neither of us has enough deductions to itemize currently, but that's really good information to have. Would this apply even if only one of us has student loans? Or is that not related to the itemizing issue?

The student loan situation itself doesn't directly affect the itemizing rule. This rule only applies when one spouse chooses to itemize deductions - then the other spouse MUST also itemize, even if it's not beneficial. The student loans come into play in your decision about whether to file jointly or separately. If you file separately to keep your loan payments lower, then this itemizing rule could potentially become relevant if either of you has enough deductions to make itemizing worthwhile.

Did filing separately affect your ability to buy a house? We're in a similar situation but planning to apply for a mortgage next year and I'm worried that filing separately will make it harder to qualify.

What about things like beauty treatments, fitness expenses, etc for adult content creators? Are those considered legitimate business expenses? My friend says she deducts her hair salon visits but that seems risky.

For beauty treatments, fitness expenses, etc., it really depends on whether they're "ordinary and necessary" for your business. This is somewhat of a gray area and varies by individual circumstances. Hair styling specifically for photo/video shoots can often qualify, but regular maintenance haircuts typically don't. The key is whether these expenses are directly tied to your business rather than personal care. For example, if you're marketing yourself as a fitness model and your workouts are specifically to maintain that brand image, you might have a case for deducting some gym expenses. However, you should maintain very good documentation and consider consulting with a tax professional who specializes in entertainment/performance professions, as these deductions can be audit triggers if not properly substantiated.

I was audited last year after 3 years of content creation. The key was having detailed records of EVERYTHING - all income, all expenses with receipts, dates, descriptions. I used a separate bank account and credit card for all business transactions which helped tremendously. The IRS didn't care about the nature of my work AT ALL. They just wanted to verify my income reporting and expense documentation. Having a mileage log for travel to shoots and a dedicated space for my home office deduction was super important. The audit was stressful but I came through fine because my documentation was solid.

Is it true that if your LLC makes less than $400 in a year, you don't have to pay self-employment tax? I heard that somewhere but not sure if it's accurate.

Yes, that's correct. If your net earnings from self-employment are less than $400 for the year, you don't have to pay self-employment tax. However, you still need to report the income on your tax return regardless of the amount. Be aware that even if you don't owe self-employment tax, you might still need to file other forms related to your business activities depending on your situation. And some states do have minimum tax requirements for LLCs regardless of income, so always check your specific state rules.

Is there an app you recommend for tracking business miles? I always forget to log them and probably missing out on deductions.