Can Someone Simplify In Layman's Terms On How To File Taxes As A Youtuber?

Submitted by Silver0PK0Power t3_11e9jjp in personalfinance

I've been thinking about starting a channel for sometime now but I'm at a complete loss on how to file my taxes as a contentment creator. (Is there even an option for that in TurboTax?)

I recently read this article from this IRS website, but even afterword's I was only able to understand a handful of the information given.
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

Could someone maybe explain this in a simpler way for someone to easily understand?
Maybe write it in dotted steps or link a video?

I really need to know this before I move forward with anything-

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Its-a-write-off t1_jacul1a wrote

If you are running this as a profit motive endeavor without significant personal enrichment, then you are self employed. Small business. That's the section you use on TT.

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altmud t1_jacwdrq wrote

I'm curious what a "contentment creator" does, lol, sounds like an interesting job.

Anyway, the first thing to determine is whether your activity is a "hobby" or a "business". The IRS has various rules for determining that. If it is a "hobby", your taxes will be very simple. If it is a "business" they will be more complex, and probably too much to put into a post here -- there are many websites with articles for self-employed persons.

https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business

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DeluxeXL t1_jacwnm9 wrote

Read the Self employment wiki. Record keeping is important when running a business. Use a dedicated bank account and keep detailed records.

Turbotax might charge you more for having a business, so look into other options in the tax software megathread.

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Engineer-Daddy t1_jaczq2m wrote

Replying to DeluxeXL (#2,107,007)

But Youtube only monetizes people with certain amounts of views. How would you prove to the IRS that you are running a legitimate business vs. some guy who just tricked his room out for gaming?

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altmud t1_jaehkn4 wrote

Replying to Silver0PK0Power (#2,125,234)

A "hobby" and a "part-time job" are two different things. You need to decide which it is. More specifically, what it is right now, this tax year (or last tax year, whichever you're talking about).

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