One of the most stressful parts of being an independent contractor can be filing taxes. That’s why, we are here to break down how you should file taxes if you were an influencer for the 2020 tax year.
Filing as a blogger, content creator, freelancer, or influencer looks a little different every year. As someone who does this every year, our Blogist community member, and full time accountant, Ashley Morgan joined us for a chat about taxes and budgeting for a recent podcast episode. We encourage you to give it a listen and read through these other resources to make sure you’re all organized for your 2020 filling.
How to File: You’re going to see a lot of 1099-NEC forms which is a non employee compensation form being used in 2020 instead of the past 1099-MISC form. If you get paid by affiliate programs like RewardStyle then you are compensated through PayPal. Therefore you will be receiving a 1099-NEC from PayPal to tax your income made on various affiliate programs. You should also be receiving these forms from the brands you worked with and you’ll want to have all of these together to compile your total earnings for your 2020 taxes. You can then file these through TurboTax, H&R Block or various tax softwares.
Tax Deductions: Since we are no tax expert here are some resources to look to when it comes to figuring out tax deductions for bloggers, influencers, and content creators. Ideally you prep your taxes quarterly as recommended by Ashley Morgan to keep up with money earned, money set aside for paying your taxes, and deductions.
Filing taxes is one of the most stressful but important parts about running your own business, but know you are not alone, and when in doubt, reach out to a certified accountant who can help you fully file if you have any questions!