I earned $175,000 from content creation last year - need desperate tax help!

As someone who's been in the content creation space for years, I completely understand the shock of your first big tax bill! The good news is there are definitely ways to potentially reduce your tax liability. First, congratulations on both your success and your new child! Your child qualifies you for the Child Tax Credit, which can reduce your tax by up to $2,000 for 2024. For content creators, there are several business deductions you should consider: home office (calculate the percentage of your apartment used exclusively for work), equipment purchases (cameras, computers, lighting, etc.), software subscriptions, music/graphics licenses, research materials, travel to filming locations, professional services (editors, assistants), and even a portion of your internet and phone bills. If you're self-employed, you can also look into setting up a SEP IRA or Solo 401(k) for 2024 - you can still make contributions for last year until the tax filing deadline, which could significantly reduce your taxable income.

After reading your situation, I totally feel your pain! I went through something similar when my channel blew up in 2023. I was hitting my head against the wall trying to figure out all these tax forms and deductions until I found this AI tax tool at https://taxr.ai that specifically helps content creators. What's cool is you upload your income statements and expenses, and it automatically finds all the deductions that apply to digital creators. It found like $12,000 in deductions I would have missed otherwise! The system knows exactly what equipment, software, and services are deductible for content creation. It even helped me figure out how to properly document my home studio space. I'm not usually someone who recommends services, but this literally saved me thousands and prevented a ton of stress during tax season.

I want to follow up about https://taxr.ai since I decided to try it after my skeptical question. I'm honestly shocked at how well it worked for my situation. I create cooking content and it immediately identified all my kitchen equipment, ingredients, and even part of my kitchen renovation as legitimate business expenses. The AI asked really specific questions about my content creation process that made me realize I was missing major deductions. It even helped me correctly calculate the business percentage of my internet, utilities, and phone bills based on my actual usage patterns. What impressed me most was how it handled my mixed-use spaces and equipment (things I use for both personal and business). The final result dropped my tax bill by over $9,000! I'm definitely using this for all my quarterly estimates going forward.

I see you've gotten some great advice already, but I wanted to mention something that helped me immensely with a similar situation. After my first big year in content creation, I also got hit with a massive tax bill and had questions the IRS needed to answer. Spent DAYS trying to get through to them on the phone with no luck. A friend recommended using https://claimyr.com to get through to an actual IRS agent. It basically holds your place in line with the IRS so you don't have to stay on hold for hours. I was skeptical, but you can see how it works in this demo: https://youtu.be/_kiP6q8DX5c I had some specific questions about deducting my editing software and home studio setup, and getting answers directly from the IRS gave me peace of mind that I wasn't making mistakes that could trigger an audit. The agent even helped me set up a payment plan when I couldn't pay the full amount at once.

I need to apologize for my skeptical comment earlier and give a honest update. After struggling for weeks to get through to the IRS about my content creation deductions, I decided to try Claimyr despite my doubts. I'm literally shocked that it actually worked. I got a call back in about 90 minutes telling me an agent was on the line. The IRS person I spoke with answered all my questions about deducting my camera equipment and editing software, plus helped me understand how to properly document my home studio space. They even helped me set up a payment plan that works with my irregular income as a creator. I was looking at penalties for underpayment, but the agent explained how I could adjust my quarterly estimated payments going forward to avoid this problem next year. For anyone dealing with content creation tax issues, getting actual clarification directly from the IRS was 100% worth it.

Have you considered establishing an LLC or S-Corp? At your income level ($175k), you could save significant money on self-employment taxes by setting up an S-Corp and paying yourself a reasonable salary. The remaining profits can be taken as distributions which aren't subject to self-employment tax. For example, if you set a salary of $90k and the remaining $85k as distributions, you could save around $13k in SE taxes. Of course, there are costs to maintain the corporate structure and more complex filing requirements, but at your income level, it's definitely worth looking into.

One thing nobody's mentioned yet - make sure you're paying quarterly estimated taxes going forward! As a content creator making that kind of money, you should be making payments every quarter to avoid underpayment penalties like you're experiencing now. 2025 estimated tax payment deadlines are April 15, June 15, September 15, and January 15, 2026. Each payment should be roughly 25% of your expected tax liability for the year. TurboTax or any tax software can help calculate what these payments should be. Trust me, it's WAY easier to pay $10k four times a year than scrambling to find $40k all at once!

Since you mentioned having a child, don't forget to look into the Child and Dependent Care Credit if you pay for childcare while you're working on content creation. This is separate from the Child Tax Credit others mentioned. If you pay for daycare, nanny, or other care services so you can work, you can claim up to $3,000 in expenses for one child. Also, as a new parent, start thinking about a 529 college savings plan. Contributions aren't deductible federally, but many states offer tax deductions for contributions, and the growth is tax-free when used for education expenses. It's never too early to start saving!