Is it really true about itemized tax deductions for content creator expenses in 2023?

So here's the deal - what you're describing sounds like business expenses rather than itemized deductions for employees. As a content creator earning income, you're considered self-employed (not an employee), which means you'd report your income and expenses on Schedule C, not as itemized deductions on Schedule A. The good news is that legitimate business expenses related to your content creation are generally deductible on Schedule C. This includes equipment, software, props, etc. that are "ordinary and necessary" for your business. The key is that these expenses must be directly related to your income-generating activity. For items you purchased but haven't used yet, they can potentially still be deductible if you genuinely bought them with the intent to use them in your business. However, if you never end up using certain items for your business, that could be problematic if audited.

After reading about similar issues with my small business, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out my deductions as a content creator. I was confused about exactly what you're describing - what counts as a business expense vs. personal expense, especially for things I bought but haven't used in videos yet. The site analyzed my receipts and purchase history, then gave me clear guidance on what qualifies as a legitimate business expense. It even flagged potential audit risks for items that were in a gray area. Saved me hours of research and probably prevented me from making some risky deduction claims.

Alright I have to admit I was wrong about taxr.ai. I tried it out of curiosity and was honestly surprised. I uploaded a bunch of my receipts from last year including some weird ones like props I bought for videos but never used and gaming equipment that I use for streaming sometimes. The breakdown it gave me was super clear about what's deductible and what's not. It even explained WHY certain items were partially deductible with actual references to tax regulations. For my unused props, it showed me exactly what the IRS guideline is - that items need to be both "ordinary and necessary" for my business. But the best part was that it helped me document my intent for these purchases which apparently matters a lot for unused items. Definitely more helpful than the generic blogs I was reading before.

If you're having trouble getting clear answers about your content creator deductions, I'd recommend calling the IRS directly. I know that sounds awful but I used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in under 15 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c I was in a similar situation with my photography business, wasn't sure what equipment I could deduct, especially stuff I bought but hadn't really used in shoots yet. The IRS agent I spoke with was surprisingly helpful and gave me specific guidance for my situation. Way better than trying to interpret the vague info on their website.

I need to apologize for my skepticism about Claimyr. I decided to try it after continuing to fail getting through to the IRS on my own. It actually worked exactly as advertised. I got a call back in about 20 minutes and was connected to an IRS representative who answered my questions about business deductions for my side gig. For what it's worth, the agent confirmed what others have said here - as a content creator, you file Schedule C, not itemized deductions. And yes, you can deduct equipment purchased for your business even if you haven't used it yet, as long as you had a genuine business purpose when buying it. But they warned that items sitting unused for extended periods could be questioned in an audit, so documentation of your intent is important. Didn't think I'd be recommending an IRS call, but that 20-minute conversation cleared up months of confusion for me.

OP I've been a full-time youtuber for 3 years now and the biggest mistake I made was trying to DIY my taxes the first year. Even with all the online advice, I missed so many legit deductions and probably overpaid by thousands $$$. My advice: find a CPA who works with content creators specifically. Regular tax preparers often don't understand our weird mix of expenses and income streams. Might cost $300-500 for tax prep but you'll likely save way more than that in deductions they'll find that you'd miss.

Just my two cents - be careful with deducting things you haven't used yet. My brother got audited last year for his small business and the IRS was particularly interested in equipment he'd purchased but hadn't deployed in his business yet. He ended up having to prove he had a legitimate business need for the items at the time of purchase. He had emails and business plans showing his intent, so he was fine, but it was definitely a stressful experience.