Content creation can be a profitable gig, but you need to follow IRS tax rules. Here's what you need to report and why

Self-employed individuals can deduct half of their self-employment tax when calculating adjusted gross income.

The IRS allows deductions for expenses that are “ordinary and necessary” for your trade or business. “Ordinary” means common and accepted in your field; “necessary” means helpful and appropriate (6).

For creators, that could include:

Cameras, lighting equipment and microphones used specifically for content
Editing software subscriptions
A portion of your cellphone and internet bills used for business
Travel costs directly tied to content production

If you work from home, you may also qualify for the home office deduction — but only if part of your home is used regularly and exclusively for business.

And there are limits. Clothing you can wear outside of work is generally not deductible, even if you bought it for filming. Personal grooming — like haircuts — typically doesn’t qualify. The IRS draws a line between business expenses and personal living costs.

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One key distinction is whether your content is a business or just a hobby.

The IRS makes clear that hobby income is taxable, but hobby expenses are generally not deductible.

To be considered a business, you must operate with a genuine profit motive. Factors include whether you keep accurate records, depend on the income and make efforts to improve profitability.

In other words, you can’t simply start posting occasionally and deduct your new laptop.

Take taxes as seriously as content creation

Content creation can look flexible and inexpensive, but overlooking taxes can quickly erode earnings. Between income tax, self-employment tax and potential state obligations, the bill can be significant if you haven’t set money aside.

At the same time, people who are already spending money on equipment, home setups or travel for legitimate business purposes may be able to offset some income, as long as they maintain documentation and stay within IRS guidelines.

The takeaway? Creating content can make financial sense, but tax write-offs aren’t automatic. They require intent, record-keeping and compliance.

So before turning your feed into a revenue stream, make sure you understand both sides of the equation: what counts as income and what truly qualifies as a deduction.