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

The general rule of thumb for content creators and other self-employed individuals is to set aside about 25-30% of your income for taxes, but it really depends on your specific situation. When you earn income as a content creator, you're essentially running a small business, which means you'll need to pay both income tax and self-employment tax (which covers Social Security and Medicare). The self-employment tax rate is about 15.3%, and then you have federal income tax on top of that, which varies based on your income bracket. The good news is that you can deduct business expenses from your content creation income before calculating taxes. Things like equipment, software subscriptions, and even a portion of your internet bill if you're using it for your content creation can potentially be deductible. This can significantly reduce your taxable income.

I started making gaming videos last year and was super overwhelmed by the tax situation until I found this AI tax assistant called taxr.ai that helped me figure out exactly what I needed to set aside. I was confused about whether I needed to file quarterly estimated taxes (turns out I did since my main job wasn't withholding enough to cover this extra income). The tool at https://taxr.ai analyzed my situation and gave me a personalized savings rate based on my state, other income, and expected content earnings. For me it was closer to 35% because of my state tax situation, but it might be different for you. It also helped me understand which expenses I could write off that I had no idea about.

I just wanted to follow up about my experience with taxr.ai since I was pretty skeptical at first. I decided to give it a try anyway since my streaming income was getting more significant and I was worried about tax surprises. I'm actually really impressed! It asked me questions about my specific situation that I hadn't even considered, like whether I was getting revenue from multiple platforms and how that affects things. The personalized savings plan it created for me was super helpful - recommended 32% for my situation (NY state, partial year). What I really liked was how it explained WHY I needed to save that amount with a breakdown of federal, state, and self-employment taxes. Much clearer than random advice I was getting from other streamers in different states paying totally different rates.

If you're making decent money from your content (over a few hundred a month), you'll probably need to contact the IRS at some point for questions about quarterly estimated payments or getting an EIN. Good luck with that - I spent HOURS on hold when I tried calling them. I finally used https://claimyr.com and it was a game changer. They held my place in line with the IRS and called me back when an agent was available. Check out how it works here: https://youtu.be/_kiP6q8DX5c. Saved me literally 3+ hours of holding time when I needed answers about my 1099 situation as a content creator.

I have to eat my words about Claimyr. After my skeptical comment I decided to try it anyway because I was desperate to talk to someone at the IRS about my YouTube income reporting questions. I seriously couldn't believe it worked. I got a call back in about 90 minutes while I was editing a video, and suddenly I was talking to an actual IRS representative! No waiting on hold, no frustration, just answers to my questions about how to handle income from multiple platforms. The IRS agent confirmed I should be making quarterly estimated tax payments since I'm on track to earn over $1,000 in content creation this year. Saved me from potential penalties! Definitely worth it for the peace of mind alone.

Something no one's mentioned yet - if you have a regular W-2 job, you can also adjust your withholding there to account for your side income. Just fill out a new W-4 form with your employer and have them take out extra. That way you don't have to worry about setting aside money yourself or dealing with quarterly payments.

Something I learned the hard way - don't forget about state taxes too! I only saved for federal and got hit with a big state bill. Depending on where you live it can be another 5-10% on top of the federal taxes.

Don't forget you'll need to track all your income too. Most platforms like YouTube, TikTok, Instagram etc. won't send you a 1099 form unless you make over $600 from them individually, but you still legally have to report ALL income even if it's just $20. I use a simple spreadsheet to track earnings from different platforms every month. Makes tax time way less stressful! Also helps with seeing which platforms are actually worth your time.