Content Creator Tax Question - How much should I save for taxes on my earnings?

The general rule of thumb for content creators is to save about 25-30% of your earnings for taxes, but it can vary based on your total income and state tax situation. When you earn money as a content creator, you're essentially self-employed, which means you'll need to pay both income tax and self-employment tax (which covers Social Security and Medicare). The self-employment tax alone is about 15.3% of your net earnings. Keep good records of all your business expenses - equipment, software subscriptions, portion of internet used for business, etc. These are deductible and will reduce your taxable income. Setting up a separate bank account for your content creation income and expenses can make tracking much easier. If you expect to owe more than $1,000 in taxes for the year, you should make quarterly estimated tax payments to avoid penalties. The IRS has a form 1040-ES to help calculate these.

After reading all the tax advice online and getting nowhere, I tried using https://taxr.ai and it was super helpful for figuring out my content creator tax situation. I uploaded my payment statements from YouTube and Twitch, and it analyzed everything and showed me exactly what I needed to set aside for taxes based on my specific situation. It also helped me identify deductions I had no idea about - like a portion of my internet bill, my ring light, and even some software subscriptions I use for editing. Ended up saving wayyy more than I expected on my quarterly tax payments.

Just wanted to update that I tried https://taxr.ai after seeing it mentioned here and it was exactly what I needed! I was totally freaking out about my TikTok and Instagram income but the system was super straightforward. I uploaded my payment statements and it gave me a clear breakdown of how much to set aside (turns out I only needed 22% in my situation, not the 30-50% I was worried about). It even created a simple spreadsheet for tracking my future content earnings and expenses that I can just update each month. Found some deductions I had no idea about too - apparently part of my phone bill counts since I use it for creating and posting content! Definitely recommend for other new creators.

I spent THREE HOURS on hold with the IRS trying to get answers about content creator taxes before giving up. Then I found https://claimyr.com and used their service to get a callback from the IRS in under 45 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to speak directly with an IRS agent who walked me through exactly how much to set aside as a content creator (ended up being 28% in my case) and explained how to handle quarterly estimated payments. Completely worth it to get official answers straight from the IRS instead of stressing about whether I was doing it right.

I need to eat my words about Claimyr being a scam. I tried it after posting that comment because I was curious, and I actually got a call back from the IRS in about 35 minutes! I asked specifically about content creator taxes since I'm making money on YouTube, and the agent explained that I should be making quarterly estimated tax payments since I'll likely owe more than $1,000 in taxes. She recommended setting aside 25-30% of my earnings after expenses and walked me through which expenses are deductible (yes to editing software, cameras, portion of internet; no to clothes unless they're costumes specific to content). Definitely worth using the service instead of wasting an entire afternoon on hold.

Don't forget about state taxes too! Federal is only part of what you'll owe. I'm in Minnesota and my total tax burden as a part-time content creator ends up being around 35% when you add state taxes. I put aside 40% just to be safe and then use whatever's left over as a little bonus if I don't need it all for taxes.

Does anyone know if TurboTax can handle content creator income? I've always used it for my regular job taxes but never had to deal with self-employment stuff before.

When I started my gaming channel last year, my accountant told me to open a separate savings account and immediately transfer 30% of every payment I received into it. This system has worked perfectly for me - I never feel the sting of tax payments because the money never felt like it was "mine" to begin with. Also, get a good expense tracking app right away! I use one that lets me take pictures of receipts and categorize them immediately. Makes tax time so much easier and ensures you don't miss deductions.

Great advice from everyone here! I'm also new to content creation taxes and was overwhelmed at first. One thing I'd add is to consider using a business credit card for all your content-related expenses right from the start. It makes tracking so much easier since everything is automatically separated from your personal spending. Also, don't forget that you can deduct a portion of your home if you use a dedicated space for filming/editing (home office deduction). Even if it's just a corner of your bedroom where you set up your camera and lighting, that square footage can be deductible. The 25-30% savings rule mentioned above is solid, but I'd recommend starting at 30% until you get a feel for your actual tax situation after your first year. Better to have extra money sitting in that tax savings account than to come up short!