In case you’re a UGC creator (user-generated content material creator), making content material for manufacturers by means of platforms like Influee®, Regular®, Billo®, or Cohley®, you is likely to be questioning how taxes work to your model offers, sponsorships, and collaborations. In contrast to a conventional worker, you’re thought-about a self-employed content material creator, which means your tax obligations look barely completely different.
Let’s break down what it is advisable find out about your tax tasks, tax write-offs, and how one can file taxes as a self-employed content material creator this tax season.
What UGC platforms are and the way they work
UGC platforms function a bridge between companies and content material creators who produce participating pictures, movies, and posts about services. So, as an alternative of hiring a manufacturing company, manufacturers use these platforms to fee genuine social media content material from creators (YouTubers, social media influencers, bloggers, and so forth.), usually with out requiring them to have an enormous following.
Some widespread UGC platforms embody: Influee, Regular, Skeepers®, Billo, Cohley, JoinBrands®, Widespread Pays®, and Pearpop®. Every platform has its personal means of connecting manufacturers with creators and freelancers. For instance, some give attention to product opinions and sponsorships, whereas others focus on short-form video initiatives that manufacturers can use as advertisements on platforms like TikTok.
These platforms pay freelancers and creators in varied methods, typically by means of a third-party fee platform like PayPal® or Venmo®, or by direct deposit into your checking account.
Do UGC creators have to pay taxes?
Sure. Whether or not you’re producing UGC part-time alongside a full-time job otherwise you’re a full-time content material creation enterprise proprietor, the IRS sees your earnings the identical means: as taxable earnings.
So, even for those who solely made $800 in enterprise earnings from model partnerships in 2025, it nonetheless counts as gross earnings and impacts your tax legal responsibility.
Right here’s what that appears like:
- You’re sometimes handled as a sole proprietor (or sole proprietorship), until you’ve arrange an LLC or one other enterprise construction.
- The cash you earn is reported on Schedule C, which is connected to your particular person tax return.
- Since you’re a self-employed particular person, you’ll additionally owe self-employment tax. This covers Social Safety and Medicare taxes that an employer would usually withhold for you.
- You may additionally have to make quarterly tax funds for those who count on to owe at the very least $1,000 in taxes for the 12 months.
How one can report UGC earnings
Most UGC platforms don’t take taxes out of your funds. As an alternative, you’ll sometimes receives a commission the complete quantity, as self-employed taxpayers are chargeable for setting some apart for tax time.
It’s OK if this feels overwhelming, particularly for those who’re incomes from a number of apps like Influee, Regular, and Billo. The excellent news is that TaxAct® makes the submitting course of easy for content material creators. Right here’s the way it works.
1. Accumulate your earnings types.
- Many platforms (like Influee, Regular, or Cohley) will ship you a Kind 1099-NEC for those who earned at the very least $600 in 2025.
- Some smaller funds (for instance, $300 from Pearpop or $400 from Billo) could not include a type, however you continue to have to report the earnings.
- Try our tax prep checklists to be sure you have all the things else you want earlier than submitting.
2. Enter your 1099s into TaxAct.
- Our tax software program will ask you questions on your earnings and provide help to report it precisely.
- Don’t fear if in case you have a number of 1099s. TaxAct permits you to enter all of them one by one.
3. TaxAct mechanically generates your Schedule C.
- A Schedule C is the IRS type used to report self-employment earnings and enterprise bills.
- You don’t have to fill it out by hand. TaxAct completes it for you when you enter your 1099s and earnings particulars.
4. Self-employment taxes are calculated for you.
- Along with federal earnings tax and state earnings tax (if relevant), self-employed creators should pay Social Safety and Medicare taxes.
- TaxAct mechanically figures out how a lot you owe and ensures it’s included in your return.
5. Arrange quarterly funds (if wanted).
- In case your complete tax owed (earnings tax and self-employment tax) is more likely to exceed $1,000, chances are you’ll have to make estimated funds all year long.
- Don’t fear about this half! TaxAct may help you estimate what you owe and set up estimated tax payments with the IRS if wanted.
Frequent tax deductions for UGC creators
The most effective a part of operating a content material creation enterprise is that you would be able to decrease your tax legal responsibility by claiming tax deductions (aka tax write-offs) for deductible bills. Something you employ primarily for enterprise functions could be deducted so long as it’s “peculiar and crucial” for your corporation.
Listed below are some widespread enterprise bills for UGC creators:
- Dwelling workplace deduction: This will embody a portion of your hire, utilities, web, and workplace furnishings (for those who use your workplace completely for work).
- Enhancing software program and instruments: Together with subscriptions like Adobe®, Canva®, or CapCut®.
- Gear: Like a digital camera, tripod, microphone, or ring gentle.
- Journey bills: Fuel, airfare, and resort prices could be deducted if touring for enterprise functions.
- Enterprise tax software program: Yep, you may even deduct the price of filing with TaxAct, if it’s for your corporation!
- Advertising and marketing prices: Your area title, web site internet hosting, or paid advertisements.
- Half of self–employment tax: Because you’re overlaying each the employer and worker parts of Social Safety and Medicare taxes, the IRS helps you to deduct half of that price straight in your tax return.
Each greenback in tax deductions lowers your taxable earnings, which reduces your total tax price, so be certain to maintain good enterprise information. Saving tax paperwork like receipts, invoices, and financial institution statements will make it a lot simpler when it’s time to file taxes.
Tax suggestions for UGC creators
- Hold a separate checking account to your content material creation aspect hustle.
- Observe funds throughout platforms, whether or not it’s Venmo, PayPal, or direct deposits.
- Save all tax paperwork and receipts for enterprise bills.
- Think about consulting a tax skilled in case your content material creator tax scenario feels overwhelming. In case you file with TaxAct, you may add Xpert Assist to get dwell tax recommendation from actual, credentialed tax consultants whereas submitting your return.*
- Use tax software program like TaxAct for streamlined, step-by-step tax submitting.
FAQs
The underside line
Being a UGC creator could be thrilling — you get to make content material, land partnerships, and run your personal small enterprise — but it surely additionally comes with its personal tax obligations. Keep in mind to remain organized, observe your corporation bills, and make these quarterly tax funds when wanted. With cautious record-keeping, sensible planning, and a bit of assist from TaxAct, you’ll be prepared for tax season, and perhaps even discover some additional tax financial savings alongside the way in which.
This text is for informational functions solely and never authorized or monetary recommendation.
All TaxAct gives, services are topic to applicable terms and conditions.
* Tax Consultants can be found with TaxAct® Xpert Help®, which encompasses a collection of companies designed to offer various ranges of assist and help to your tax submitting wants. These companies can be found at an extra price and are topic to limitations and restrictions. Service availability, options, and pricing could range and are topic to alter with out discover. For extra particulars, read full terms.
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