the creator's guide, by platform

YouTube

Income streams: AdSense (CPM-based), sponsorships (brand deals), merch (products), affiliate links, YouTube Premium revenue share.

What you'll receive

• 1099-K from AdSense: Your AdSense earnings (after YouTube's 45% cut)
• 1099-NEC from brands: If they pay you directly for sponsorships (>$600)
• Form 1099-K from processor: If you sell merch via Shopify or similar (threshold $600+ in 2025)

Key deductions

• Equipment: Camera, lenses, microphone, lighting, tripod. Use §179 to deduct over $200 immediately.
• Software: Editing (Adobe, DaVinci), hosting (YouTube is free but your own website?), thumbnail design tools (Canva Pro).
• Content costs: Stock footage, music licenses, sound effects (Epidemic Sound, Artlist, Storyblocks).
• Travel: Flights, hotels, rental cars for collab trips or conference attendance. Meals are 50% only.
• Props: Set decoration, costumes (if exclusive to content).
• Home office: Simplified $5/sqft method is easiest.
• Sponsorship costs: If you pay a manager to negotiate brand deals (line 10 or 25).

Real numbers

A channel with 100k subs might earn $2k–$5k/month from AdSense (CPM varies wildly: $1–$20 per 1000 views depending on niche). Add sponsorships ($5k–$20k per deal), and income quickly reaches $50k–$150k/year.

Deductions: $20k–$40k/year (equipment, software, travel) is typical for a serious channel. Net profit: $30k–$110k.

Tax moves

• Form an LLC and elect S-corp around $80k+ income to save on SE tax.
• Max out §179 equipment deductions in the year you buy gear.
• Track travel carefully—collabs and conference trips are deductible.

Patreon

Income streams: Subscription tiers, one-time support, Patreon's own ads (rev share), merch sales.

What you'll receive

• 1099-K from processor: Your net payout (after Patreon's 8–12% cut) from subscriptions and support
• No form for merch: Merch through Patreon has its own tax handling; track separately

Key deductions

• Content production: Software, stock assets, props, sets.
• Tier rewards: Merch, physical items, or services you provide to subscribers (cost of goods).
• Community management: If you hire a VA to manage Discord or email (line 11 contract labor, or line 24 wages if W-2).
• Patreon fees: Already deducted by Patreon, but track them for verification.
• Email platform: ConvertKit, Substack (for exclusive newsletters).

Real numbers

Income varies wildly. A creator with 500 patrons at $5/month average = $30k/year. At 2000 patrons and $10/month average = $240k/year. Deductions: typically 20–30% of revenue (production costs, tier fulfillment).

Tax moves

• Patreon income is 100% self-employment tax—no way around it unless you form an LLC and elect S-corp at high income levels.
• Keep receipts for all tier fulfillment costs (merch, supplies). These reduce net profit directly (COGS-adjacent).

Substack

Income streams: Paid subscriptions (Substack takes 10%), free + paid tiers.

What you'll receive

• 1099-K: Your net payouts (after Substack's 10% cut) from paid subscribers

Key deductions

• Writing and research: Books, subscriptions to research databases, courses on writing.
• Software: Grammar tools (Grammarly), scheduling, analytics.
• Promotion: Ads on Twitter/LinkedIn, guest post exchanges, sponsorships of other newsletters.

Real numbers

Substack creators typically earn less than YouTube or Patreon (smaller audiences, younger platform). Typical: 100–500 paying subscribers at $5–$20/month = $6k–$120k/year. Most are on the lower end ($10k–$50k).

Tax moves

• Substack is pure service income (no COGS). Deductions focus on content creation, promotion, and tools.
• Consider S-corp at $80k+ for SE tax savings.

OnlyFans

Income streams: Subscription tiers, PPV (pay-per-view) content, tips.

What you'll receive

• 1099-K: Your net payouts (after OnlyFans' 20% cut)

Key deductions (and privacy concerns)

• Production costs: Equipment, props, costumes, sets. These are fully deductible.
• Software and hosting: Content protection tools, analytics, scheduling.
• Wardrobe and makeup: Only if exclusive to OnlyFans (not suitable for personal wear).
• Tax prep: Critical to hire a CPA who specializes in adult content creators. They understand privacy and deduction strategy.
• Privacy considerations: Some creators file returns under an LLC name or legal entity for privacy. Consult a CPA.

Real numbers

Income ranges from $0–$100k+/month depending on subscriber count and fan loyalty. Typical successful creator: $50k–$500k/year. Deductions: 30–50% (heavy production costs).

Tax moves

• Form an LLC (for liability and privacy). S-corp election is smart at higher income levels.
• Work with a specialized CPA to ensure deductions are defensible and privacy is maintained.
• Keep meticulous records—the IRS scrutinizes adult content income, so documentation is critical.

Twitch

Income streams: Bits (Twitch's currency, viewers buy), subs (viewers subscribe), donations (tips), sponsorships, merch.

What you'll receive

• 1099-K from Twitch: Gross payouts (after Twitch's cut varies: 50% on subs to Twitch, 1.5% on bits)

Key deductions

• Equipment: Gaming PC, microphone, camera, lighting, chair (if over $500, depreciate).
• Internet: High-speed Internet (business %).
• Software and tools: Streaming software (OBS free, Streamlabs free, Elgato Stream Deck ~$200), overlays, alerts.
• Game purchases and subscriptions: If you buy games for content, this is tricky. If you own the game personally, the deduction is partial (business %). Pure content games = fully deductible.
• Co-streamer payments: If you pay others to stream with you (line 10 or 11).

Real numbers

Varies widely by game and audience. A popular streamer with 5,000 concurrent viewers might earn $20k–$100k/month. A smaller streamer with 100–500 viewers: $500–$5k/month. Deductions: 15–30% (equipment, Internet, software).

Tax moves

• Max out §179 on gaming PC and equipment purchases.
• Track Internet costs (50% business, 50% personal is reasonable if you also use it at home).
• S-corp at $80k+ to reduce SE tax.

Etsy

Income streams: Product sales (digital or physical), shop fees.

What you'll receive

• 1099-K from Etsy's processor: Gross sales revenue (including Etsy fees, which you don't get back)

Key deductions

• COGS (cost of goods sold): Material costs for physical products. This is not an expense deduction; it reduces gross profit directly. Track beginning inventory, purchases, ending inventory.
• Etsy fees: Listing fees ($0.20 each), transaction fees (6.5%), payment processing (~3%). Etsy deducts these from your payout, but track them.
• Shipping supplies: Boxes, labels, bubble wrap, tissue, thank-you cards.
• Design tools: Photoshop, Illustrator, design templates.
• Photography: Lighting, backdrop, props for product photos.
• Advertising: Etsy ads, Google Ads for your shop.

Real numbers

Income depends on product type. A shop selling digital downloads: $20k–$200k/year at much higher margins (COGS ~0%, fees ~10%). A shop selling handmade goods: $10k–$100k/year with COGS 40–60%.

Tax moves

• Don't forget COGS. If you sell $50k in merchandise that cost you $20k to make, your gross profit is $30k, not $50k. Many Etsy sellers overpay taxes by forgetting this.
• Marketplace facilitator (Etsy) collects sales tax for you in most states. You don't file sales tax returns. Just track what was collected (for your records).
• S-corp at $60k+ net profit might make sense for Etsy sellers (higher profit margins due to lower COGS).

Depop & Poshmark

Income streams: Secondhand apparel and goods sales. Minimal fees compared to Etsy.

What you'll receive

• 1099-K from processor: Gross sales (Depop takes 10–20%, Poshmark 20%)

Key deductions

• COGS: Cost of items you purchased for resale. For thrift store finds, track what you paid.
• Shipping supplies: Mailers, labels, tissue.
• Platform fees: Already deducted, but track.
• Photography: Props, lighting, staging items for photos.
• Promotion: If you run ads to boost listings.

Real numbers

Casual resellers: $3k–$10k/year. Serious resellers (full-time): $30k–$150k/year. Profit margins: 30–50% (if you source well). COGS is your biggest deduction.

Tax moves

• Track COGS obsessively. If you sell $20k in goods but only paid $8k for them, gross profit is $12k, not $20k.
• Marketplace facilitator (Depop, Poshmark) collects sales tax; you don't need to file sales tax returns.
• At $60k+ net profit, consider an LLC for liability protection.

Multi-platform creators

Many creators earn from multiple platforms simultaneously. Example: A creator with a YouTube channel, Patreon, and sponsorships might earn $30k from YouTube, $20k from Patreon, and $15k from brand deals.

How to file

• You file one Schedule C for your entire creator business (not separate ones per platform).
• Combine all 1099 income on Schedule C line 1a (gross receipts).
• Deductions apply to the entire business: one home office, one equipment line, etc.
• Example: If you earned $30k YouTube + $20k Patreon + $15k sponsorships = $65k total income on Schedule C.

Tax strategy

• At $65k combined income, an LLC (default) is good. At $80k+, consider S-corp election.
• Allocate shared deductions across platforms (home office serves all of them, so deduct the full amount).
• Track time spent per platform to support deduction allocation if audited.

Bottom line

Each platform has nuances, but the core tax strategy is the same: report all income, deduct all eligible expenses, choose the right entity structure, and file consistently. The biggest mistake creators make is forgetting deductions specific to their platform—equipment for YouTubers, COGS for Etsy sellers, tier fulfillment costs for Patreon creators. Know your platform, keep receipts, and you'll minimize what you owe.