When you’re a UGC creator (user-generated content material creator), making content material for manufacturers via platforms like Influee®, Regular®, Billo®, or Cohley®, you may be questioning how taxes work in 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 totally different.

Let’s break down what it’s essential to learn about your tax tasks, tax write-offs, and 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 a substitute 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 on.), typically with out requiring them to have an enormous following.

Some widespread UGC platforms embody: Influee, Regular, Skeepers®, Billo, Cohley, JoinBrands®, Fashionable Pays®, and Pearpop®. Every platform has its personal approach of connecting manufacturers with creators and freelancers. For instance, some deal with product critiques and sponsorships, whereas others focus on short-form video tasks that manufacturers can use as adverts on platforms like TikTok.

These platforms pay freelancers and creators in varied methods, typically via a third-party cost platform like PayPal® or Venmo®, or by direct deposit into your checking account.

Do UGC creators must 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 approach: as taxable revenue.

So, even in the event you solely made $800 in enterprise revenue from model partnerships in 2025, it nonetheless counts as gross revenue and impacts your tax legal responsibility.

Right here’s what that appears like:

• You’re usually 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 hooked up 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 must make quarterly tax funds in the event you count on to owe at the very least $1,000 in taxes for the yr.

The right way to report UGC revenue

Most UGC platforms don’t take taxes out of your funds. As a substitute, you’ll usually receives a commission the total quantity, as self-employed taxpayers are chargeable for setting some apart for tax time.

It’s OK if this feels overwhelming, particularly in the event you’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. Acquire your revenue kinds. 

• Many platforms (like Influee, Regular, or Cohley) will ship you a Kind 1099-NEC in the event you 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 must report the revenue.
• Take a look at our tax prep checklists to be sure to have all the pieces else you want earlier than submitting.

2. Enter your 1099s into TaxAct.

• Our tax software program will ask you questions on your revenue and aid you report it precisely.
• Don’t fear in case you have a number of 1099s. TaxAct permits you to enter all of them one by one. 

3. TaxAct robotically generates your Schedule C.

• A Schedule C is the IRS type used to report self-employment revenue and enterprise bills.
• You don’t must fill it out by hand. TaxAct completes it for you when you enter your 1099s and revenue particulars. 

4. Self-employment taxes are calculated for you. 

• Along with federal revenue tax and state revenue tax (if relevant), self-employed creators should pay Social Safety and Medicare taxes. 
• TaxAct robotically 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 (revenue tax and self-employment tax) is more likely to exceed $1,000, you could must make estimated funds all year long. 
• Don’t fear about this half! TaxAct can assist you estimate what you owe and arrange estimated tax funds with the IRS if wanted.

Widespread tax deductions for UGC creators

The most effective a part of operating a content material creation enterprise is that you could decrease your tax legal responsibility by claiming tax deductions (aka tax write-offs) for deductible bills. Something you utilize primarily for enterprise functions could be deducted so long as it’s “strange and essential” for your small business.

Listed below are some frequent enterprise bills for UGC creators:

• House workplace deduction: This could embody a portion of your lease, utilities, web, and workplace furnishings (in the event you use your workplace completely for work).
• Enhancing software program and instruments: Together with subscriptions like Adobe®, Canva®, or CapCut®.
• Gear: Like a digicam, tripod, microphone, or ring mild.
• Journey bills: Fuel, airfare, and lodge prices could be deducted if touring for enterprise functions.
• Enterprise tax software program: Yep, you possibly can even deduct the price of submitting with TaxAct, if it’s for your small business!
• Advertising prices: Your area title, web site internet hosting, or paid adverts.
• Half of self–employment tax: Because you’re overlaying each the employer and worker parts of Social Safety and Medicare taxes, the IRS allows you to deduct half of that price instantly in your tax return.

Each greenback in tax deductions lowers your taxable revenue, which reduces your general tax charge, so make 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

• Preserve a separate checking account in your content material creation aspect hustle.
• Observe funds throughout platforms, whether or not or not it’s Venmo, PayPal, or direct deposits.
• Save all tax paperwork and receipts for enterprise bills.
• Take into account consulting a tax skilled in case your content material creator tax state of affairs feels overwhelming. When you file with TaxAct, you possibly can add Xpert Help to get reside tax recommendation from actual, credentialed tax specialists 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. Bear in mind to remain organized, monitor your small business bills, and make these quarterly tax funds when wanted. With cautious record-keeping, sensible planning, and just a little assist from TaxAct, you’ll be prepared for tax season, and possibly even discover some further tax financial savings alongside the way in which.

This text is for informational functions solely and never authorized or monetary recommendation.

All TaxAct provides, services are topic to relevant phrases and circumstances.

^* Tax Consultants can be found with TaxAct® Xpert Help®, which encompasses a set of providers designed to supply various ranges of assist and help in your tax submitting wants. These providers 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 vary with out discover. For extra particulars, learn full phrases.

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