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Do creators pay taxes on brand deals and free products

JB
Jordan Blake · Nano creator
Asked 3 weeks ago · Updated 2 weeks ago
TaxesBrand dealsCreator business

Do I actually have to pay taxes on brand deals and what about the free products brands send me?

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4 answers

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Accepted answer
Sophia MillerKALO IQHead of Creator Relations3 weeks ago

Yes and the free product counts too. In the US the IRS treats creator income as self-employment, so brand fees, affiliate commissions and gifted PR are all taxable, the gifts at their fair market value. Brands that pay you over the threshold send a 1099-NEC but you owe the tax whether a form shows up or not. Set aside roughly a quarter to a third of what you earn and pay quarterly estimates. This is general info, not tax advice, so run your numbers past an accountant.

What counts as income

Cash, commissions and free product all count. The IRS is clear on this one.

Gifts are taxable too

A PR package is income at its fair market value, even when no cash changed hands.

Set money aside

Park a quarter to a third of earnings. Self-employment tax stings if you do not.

Get a pro early

An accountant pays for themselves once creator income is real. Not optional at scale.

👍 Helpful 188
MR
Maya ReyesCreator ProTop contributor3 weeks ago

The gifted product tax surprised me hard my first year. Those PR boxes are income and the IRS does not care that you did not ask for them.

👍 Helpful 24
MW
Marcus WebbCreator Pro2 weeks ago

Open a separate account and move 30 percent of every payment into it the day it lands. Future you at tax time will be grateful.

👍 Helpful 20
PS
Hannah BrooksCreator Pro1 week ago

Get an accountant the moment this is real money. Mine found write-offs that more than covered the fee in year one.

👍 Helpful 13

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