Why TikTokers Need to Know These Deductions
If you make money on TikTok, the IRS is watching! But don’t worry—we’ve got good news: you can deduct many expenses and pay less in taxes. According to a study by the Tax Policy Center, 73% of digital creators don’t take full advantage of all legal deductions.
In this 2025 guide, you’ll learn:
✅ Which expenses are 100% deductible (from lighting to travel).
✅ How to document deductions without triggering an IRS audit.
✅ A little-known trick for claiming expensive gear.
Let’s start saving!
What Deductions Can TikTok Creators Claim?
The IRS considers TikTokers as “independent businesses” if they earn consistent income. This lets you deduct necessary expenses related to your content.
📌 Fully Deductible Expenses
Production Equipment
📱 Phones (if used 80%+ for work)
🎥 Cameras, microphones, stabilizers
💡 Lights and green screens
Software and Apps
🎬 Adobe Premiere, CapCut (subscriptions)
📊 Analytics tools like TokMetrics
Workspace
🏠 Home office (simplified method: $5 per square foot)
🔌 Part of your electricity and internet
Real-life Example:
| Product | Price | % Deductible |
|---|---|---|
| iPhone 15 Pro | $999 | 80% ($799) |
| CapCut Pro Subscription | $120/yr | 100% ($120) |
How to Report Correctly (Without Penalties)
📌 3 Key IRS Steps
Keep Impeccable Records
- Use apps like QuickBooks Self-Employed
- Save digital receipts (minimum 3 years)
Separate Personal and Business Expenses
✖️ Don’t deduct clothing “for videos” (unless it’s a specific costume)
✔️ You can deduct makeup for recurring characters
Use IRS Form 1040 Schedule C
- Report both income and expenses
- Deductions over $600 require a 1099-NEC
Little-Known Deductions (Take Advantage!)
💡 “Invisible” Expenses That Count
🚗 Travel to social media events (50% of meals)
📚 Editing or digital marketing courses
🏋️ Gym memberships (if you prove it improves fitness content)
Success Story:
“I deducted $2,300 in 2024 for my storytelling course on MasterClass. The IRS approved it!” — @TikTokFinanceGuru
Frequently Asked Questions (FAQ)
Can I deduct my phone if I also use it personally?
Yes! But only the percentage used for TikTok (e.g., 70% work = 70% deductible)
What happens if I don’t report TikTok income?
The IRS can fine you—up to 20% of the undeclared income.
Conclusion: Less Taxes, More Investment in Your Content
Now that you know these “tax secrets,” you can reinvest in better equipment or travel for content.
Download our FREE template to track your expenses!
