Diane Kennedy, CPA
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Many creators miss valuable tax deductions because traditional small-business advice doesn’t reflect how content businesses actually operate. From production sets to platform fees, your creator-specific expenses may qualify—if you know what to look for.
If you ask “What’s deductible?”, chances are you’re going to get a traditional small-business list of possible deductions.
There is a problem, though.
Traditional small-business tax checklists weren’t written for YouTubers, streamers, or influencers.
They assume you have a storefront, a leased business location, inventory, and employees.
Creators operate differently.
Your living room may be your studio.
Your pets may be part of the format.
Your kitchen table may be your production set.
If your tax strategy treats you like a generic small business owner or independent contractor, you may be missing deductions unique to the creator economy.
Consider these creator-specific expense areas that often get forgotten:
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1. Product Reviews And Demonstration Purchases
Many creators buy products specifically to:
- Review
- Compare
- Demonstrate
- Unbox
- Test
It doesn’t matter that the product might fail or it’s only used once. It doesn’t even matter if it remains in your home afterwards and is never used in a video again.
If it was purchased primarily to create content that could make you money, it may qualify as a business expense.
That is the key point. It doesn’t matter whether you still own the item. It matters whether the business was the reason you bought it.
That’s the deduction.
2. Set Design And Production Environment
Creators often think only in terms of “home office.” That’s because other traditional home businesses have a home office and maybe a place for inventory. But they don’t have what a creator needs for business.
Production costs are more than just a desk and a chair.
Your creator business may include:
- Backdrops and lighting upgrades
- Soundproofing panels
- Studio décor used primarily for filming
- Specialty flooring
- Furniture purchased specifically for camera framing
An expense that helps your content may be a deduction. Ask yourself:
If your channel didn’t exist, would you buy this?
Imagine a creator whose entire brand revolves around cooking at a low table while two beagles attempt to “help.”
The dogs climb onto the set.
They try to steal ingredients.
They create chaos.
That chaos is the format.
Now consider the costs created by that production model:
- Washable flooring
- Extra ingredients for multiple takes
- Protective coverings for equipment
- Cleaning supplies required because of the filming setup
- Set design built specifically for low-angle camera work
Would those purchases exist without the channel? Probably not.
They are not ordinary household upgrades. They are production costs created by the business model.
Many creators miss deductions because they ask: “Is this normally deductible?”
A better question is: “Did this expense arise because my content exists?”
3. Platform Fees And Revenue Splits
Fees are generally deducted before the creator gets paid. That means those fees can get overlooked.
Examples include:
- YouTube revenue splits
- Patreon or subscription platform fees
- Affiliate commissions retained by networks
- Payment processor fees (Stripe, PayPal, etc.)
If these aren’t tracked properly, creators may overstate taxable income and miss an important deduction.
Platform fees are a legitimate deduction for creators.
4. Outsourcing Your Brand
Revenue grows and content creators start looking more like media companies instead of solo operators. That means deductions will change too.
Common deductible expenses at this stage may include:
- Video editors
- Thumbnail designers
- Virtual assistants
- Script writers
- Contract review by attorneys
- Bookkeeping services
If someone supports the production, protection, or monetization of your content, that cost is part of running your business. And that means you may have a deduction.
5. Giveaways And Audience Growth
Typical marketing costs may occur if you run product giveaways, merchandise promotion, collaboration packages, and sponsored incentives.
As long as the purpose of the giveaways is revenue growth and audience expansion, you’ve probably got a deduction.
Remember that you need good documentation and clear business intent.
6. Professional Development For Creators
It’s almost like the IRS wants you to succeed. When you attend education that makes you better at your creator business, you get a deduction.
Some examples may include:
- Monetization workshops
- Editing courses
- SEO or algorithm training
- Creator conferences
- Mastermind groups focused on digital media growth
If the professional education courses have the promise of making your business more successful, then you’ve likely got a deduction.
Think Like A Production Company
Why do creators miss deductions? It’s not because they’re reckless or don’t care. The problem is that they rely on generic advice. Or, they don’t think of themselves as having a real business. They’re just posting videos.
Their tax strategy hasn’t kept up with their business and their taxable income.
The creator economy is not a hobby industry. It is a monetized media ecosystem.
Your business model is unique compared to old brick-and-mortar models. Your tax planning needs to reflect that.
Creator Tax Deductions Frequently Asked Questions (FAQs)
Can Influencers Deduct Products They Review?
If products are purchased primarily for monetized content creation, they may qualify as business expenses. Document your business purpose to support the deduction.
Are YouTube Platform Fees Tax Deductible?
Yes. Revenue splits, affiliate commissions retained by networks, and payment processing fees are generally considered ordinary and necessary business expenses.
Can Creators Deduct Set Design And Studio Décor?
Items used primarily for filming and production may qualify. General home décor you were already using for personal purposes does not.
Are Giveaways Tax Deductible For Influencers?
Giveaways and promotional products may qualify as marketing expenses. The key question is whether they are tied to audience growth and revenue strategy.
Is Professional Development Deductible For Content Creators?
Education that improves your skills and directly supports your creator business can qualify as a deductible business expense.
How Do I Know If An Expense Is Deductible For My Channel?
A useful test is whether the expense would exist if your channel did not exist. If you have the cost because of content that makes you money, take a closer look. You may have a deduction.
What This Means For Creators
Understanding deductions is one thing. Tracking them properly is another.
Lettuce is built specifically for founders and business owners who need clean books, organized expense tracking, and proactive tax support—without the complexity of traditional accounting firms.
If you're a creator earning real income, you deserve financial systems that treat you like a real business. Lettuce helps you categorize expenses correctly, track platform fees, and stay ahead of tax season with confidence.
Get started with Lettuce today!
This article is part of the Tax Strategy Series, featuring in-depth, practical guidance from Diane Kennedy, CPA—bestselling author, strategic tax consultant, and founder of USTaxAid and KennedyTax.tax. Explore the full series and catch every installment here.