Top Influencer Tax Deductions for 2025 You Don’t Want to Miss

November 25, 2025
Articles

Influencer income can be unpredictable. One month, you land a campaign that changes everything. The next month, your earnings dip while you focus on content planning or travel. With platforms, brand deals, and affiliate programs paying in so many different ways, taxes can feel confusing even for seasoned creators.

The good news is that influencers have access to a long list of legitimate deductions that can reduce their tax bill. Whether you live in the United States or abroad, if you earn U.S.-source income, these deductions matter.

Understanding what you can claim and how to document it will help you keep more of your earnings and run your creator business with confidence. This guide brings together the most important influencer tax deductions to know in 2025.

Equipment, Software, and Creative Tools

Influencers rely on a wide range of tools to create high-quality content. Cameras, lenses, lighting setups, microphones, laptops, editing software, and design subscriptions are all common parts of running a creator business. These purchases are generally deductible when they support the work you do.

The IRS wants to see that an expense is both normal for people in your industry and genuinely helpful for your business. This means the item should be something influencers typically use and something you bought because it directly improves or supports your content. A camera you use for filming, a laptop you use to edit, or software you use to design graphics usually fit this standard.

For items you use both personally and for your content, such as your phone or computer, keep a simple estimate of how much time you use them for work. That allows your accountant to deduct the correct percentage. If you purchased equipment while living abroad, you can still claim the expense as long as you keep the receipt and it relates to your U.S. creator income.

If you know you need to upgrade gear, doing so before December 31 lets you recognise the deduction in the current tax year. The important thing is to choose items that genuinely support your content, rather than rushing into last-minute purchases you might not use.

Home Office, Studio Space, and Filming Areas

Many influencers work from home, whether that is a spare bedroom in Los Angeles or a small apartment overseas. If you use part of your home regularly and exclusively for your content business, you may qualify for the home office deduction. This can apply to a filming corner, an editing station, or a room set up specifically for shooting.

You can calculate this deduction in two ways. The simplified method gives you a set amount per square foot. The actual method lets you deduct a portion of your rent, utilities, and internet based on the size of the workspace. Both approaches work as long as the area is used only for business, not for relaxing or personal activities.

Influencers who rent an external studio, co-working desk, or production space can also claim those costs. Just keep clear documentation showing how the space supports your content. The IRS cares less about where you work and more about whether the space is tied to your creator business.

If you are a digital nomad who moves regularly, the simplified method often makes bookkeeping easier. The key is consistency. If you use a space specifically for content creation and you can back that up with photos or simple notes, it can often qualify.

Travel, Events, and Creator Meetups

Travel is one of the most exciting parts of being an influencer, but it is also an area where creators accidentally over-claim. For travel to count as a business deduction, the main purpose of the trip must be work. If you flew to New York for a brand shoot or to attend VidCon, your flights, lodging, meals, and transportation may be deductible. If you went to Paris for a holiday and filmed one quick TikTok, that is not considered a business trip.

A good way to think about it is this:

If you performed work on the day when in another place outside of where you live (think met with clients, shot for brands, went to a conference), then those days are considered business travel days.
If the trip only happened because of your content plans, it is a business trip.
If you just edited videos from your laptop at the hotel, then that doesn’t count as a business trip day. Here’s a video where we explain more

Many creators combine both personal and business trips. In those cases, you can often deduct the business portion of the trip while leaving out the personal days.

This same rule applies whether you live in the United States or abroad. A digital nomad filming a week of content in Seoul or meeting a sponsor in London may still count that trip as a business expense as long as the purpose is clearly tied to their creator work and only for the days they did work on. Travel days count as work days.

For example, if you leave on a Wednesday and arrive in Seoul on a Thursday, those two days and all the costs associated with the trip count as a business travel expense. If you shoot for brands on a Friday, then have a meeting with a business on a Monday and flight out Tuesday, all of those days would count as business-related. Even the weekend, even if you didn’t do any work, as if you do work-related things on Friday and Monday, then the expenses for the whole weekend are also business deductible. It is important to keep receipts, emails, and schedules to make it easy to justify these deductions if ever asked for substantiation from the IRS.

Platform Fees, Payment Processing, and Affiliate Costs

A surprising amount of influencer income disappears into fees. YouTube reduces your AdSense earnings. TikTok, Instagram, and affiliate platforms take their share. Payment processors such as Stripe and PayPal charge transaction fees every time a brand pays you. These fees are all deductible because they are directly connected to the income you receive.

Download statements from each platform throughout the year so you do not have to dig for them at tax time. If you operate a U.S. entity while living abroad, these fees still count as business expenses as long as they relate to your U.S. creator income.

Many influencers forget about these charges, but over a year, they can add up to thousands of dollars, so it is worth tracking them carefully.

Business Structure and Compliance

Your income level often determines whether it is time to move beyond being a sole proprietor. Many influencers eventually form a U.S. LLC to separate their personal and business finances, appear more professional to brands, and simplify bookkeeping. Once your earnings are consistent, an S Corp election may also reduce your self-employment taxes.

For international influencers earning U.S. income, a U.S. LLC can help avoid foreign platform withholding and make it easier to work with U.S. agencies. However, it also comes with filing requirements, so it is important to choose the right structure and understand your obligations.

Whatever setup you have, keeping your paperwork in order is essential. Store your W-9 forms, brand contracts, invoices, and payment records in one place. Good documentation not only supports your deductions but also makes your business look more organised when negotiating sponsorships and long-term partnerships.

Clothing, Beauty, Props, and On-Camera Purchases

This is often the most confusing area for influencers. Clothing and beauty expenses usually feel like part of the job, but the IRS treats them carefully. Everyday outfits, general grooming, hair appointments, and makeup that can be used outside your content are usually considered personal expenses.

However, items used strictly for your content can be treated differently. Costumes, stage makeup, branded merchandise, wigs, props, and clothing that you would never wear in normal life may be deductible if they are exclusively for your creator work. The key is being honest about the purpose and keeping documentation that shows when and how you used the item. The IRS is strict on this, so you must have very good proof, as if you are audited, you are guilty until proven innocent, unfortunately. So if you do not have proper documentation and proof, you will lose the audit.

Most of the time, deducting hair and clothes won’t hold up under an audit. It is the taxpayer’s risk and responsibility at the end of the day, but it is a scrutinized deduction, as the IRS knows people abuse it. So if you do take this deduction, make sure it is for business purposes only.

Retirement Savings and Health Care

Many influencers do not realise they can create their own retirement plan. A SEP IRA or Solo 401(k) lets self-employed creators save for the future while reducing their taxable income. If you had a strong year financially, contributing to one of these plans before the deadline can create a meaningful tax benefit.

Self-employed individuals may also be able to deduct health insurance premiums, depending on their filing status. This applies to creators living both in the United States and abroad, as long as they have U.S. income or operate a U.S. entity.

Influencers Living Abroad or Working as Digital Nomads

Many creators now live outside the United States but continue to earn U.S.-source income through platforms, sponsorships, and affiliate programs. In these situations, you may still have U.S. tax obligations, even if you also file taxes in another country. Deductions still apply the same way they would for a U.S.-based creator, as long as the expenses support your U.S. business activities.

Equipment and software purchased abroad can still qualify. Just keep receipts, convert the amounts into U.S. dollars, and document how the item supports your content. If you earn income in multiple currencies, your accountant will help determine the correct exchange rate to use for your tax return.

You may also be eligible for foreign tax credits depending on where you live and what taxes you paid locally. These credits help prevent double taxation, but the rules can vary widely from country to country. This is an area where personalised guidance is often helpful, especially if you move between countries or work in multiple jurisdictions.

Also read: Year-End Tax Planning for Digital Nomads: US Rules You Need to Know

Work with Accountants Who Understand Influencers

Being an influencer means blending creativity with business decisions every single day. The more intentional you are about tracking your expenses and understanding the deductions available to you, the easier tax season becomes.

If your creator business spans countries, platforms, and currencies, the rules can feel even more complex. That is where having the right support makes all the difference. BizBud specializes in helping influencers who live in the United States, as well as creators who live abroad but earn U.S. income. We handle the details so you can focus on your audience, your partnerships, and your creative work.