As discussed in Part 2, there are many ways social media creators earn income.
Social media income, like all income, needs to be reported on federal tax returns. Accurately tracking such income is important to ensure correct tax reporting and avoid potential income-related issues with the IRS. Some ways to accurately track income include making a spreadsheet or using an online service or phone application. No specific method is best, so long as it works for you.
It is also important to maintain and keep books, records, and receipts. Keeping organized records will not only help you accurately report your income but also substantiate your reporting positions in the event of an IRS audit. See, e.g., I.R.C. § 6001; IRS Publication 583.
This post is Part 4 of the Posts, Profits, and Penalties series, and each part can be found by clicking the following corresponding link: Intro, Part 1, Part 2, and Part 3.
Freeman Law Attorneys
If you have any questions regarding potential social media-related tax issues, Freeman Law can help. We offer value-driven legal services and provide practical solutions to complex tax issues. Click here to schedule a consultation or call our office at (214) 984-3000.
