Yahoo Finance Social media coach shares 'insane' secret about how influencers make money: 'This is crazy'
Have you ever wondered how influencers are able to afford all of those designer clothes and extravagant trips?
Have you ever wondered how influencers are able to afford all of those designer clothes and extravagant trips? Well, tax deductions might have something to do with it.
Recently, digital marketing coach Mila Homes shared this mind-blowing fact with her 471,000 followers in a now-viral TikTok.
“I was today years old when I realized YouTubers do clothing hauls on their channels so that they can write off the clothing on their taxes,” she said in the video. “They literally get all this cool [clothing and] make a video of it so it’s considered work and then they get to write it off. THAT’S SO COOL!”
This might sound too good to be true, but Holmes is right. According to tax advisor Handy Tax Guy, all you have to do is prove that your clothes are necessary for “accomplishing your job as an online influencer” in order to write them off as a business deduction.
That’s not the only thing influencers can write off when they’re doing their taxes, either. Travel expenses like transportation and lodging can be considered essential for an influencer, which makes them a tax write-off. Prizes used in giveaways, charitable donations and meals eaten while discussing work can also be written off as business expenses. For bloggers and influencers, the list of write-offs is seemingly endless.
On Holmes’ video, many influencers noted that the amount of things that can be written off during tax season is “insane.”
“And as a travel content creator I get to write off my travel,” travel blogger @whereintheworldisnina said. “And lots of other stuff!”
“Being a small business owner has its perks,” another person added. “I write off my entire house mortgage because my office is in my basement.”
Other people who aren’t as familiar with the business of being an influencer were just plain shocked.
“This is crazy,” one person said.
“Brb making a YouTube channel,” another joked.
“I’m bout to save so much money,” a third added.
Before you make a YouTube channel just to get “free clothes,” you should consult a tax expert to learn more about how write-offs work. Write-offs lower your taxable income, thereby lowering how much you owe in taxes. At the end of the day, you will still be paying something for those trips and clothes.
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