Professional Corporation
U.S. Tax Filing for YouTubers
Videos on YouTube and other platforms are popular around the world, and successful creators reportedly earn remarkable amounts. According to Forbes, child star Ryan earned approximately $22 million in 2018 through toy reviews and similar content, while Jake Paul, known for pranks and humorous antics, earned about $21.5 million. How do these YouTubers file their taxes?
YouTube inserts advertising into creators’ videos and shares the revenue. For creators in Korea, YouTube does not share income information with the Korean government, but in the U.S. it reports a creator’s annual income to both the creator and the IRS on Form 1099-MISC. Consequently, receiving $600 or more of YouTube income, the threshold for issuing Form 1099-MISC, requires a return even if there is no other income. Korean nationals staying in the U.S. without work authorization should be cautious because receiving this income can create U.S. immigration-law issues.
How is the return prepared? An individual who receives Form 1099-MISC from YouTube reports the income and related expenses on Schedule C, like a self-employed business owner, and pays the resulting tax. Most content-production costs, such as cosmetics for makeup videos or food for eating broadcasts, may be deductible. However, products such as clothing or cosmetics that can also be used personally may be disallowed, so keep supporting documentation. If a company is formed for the activity, YouTube revenue is reported as company income and offset by related expenses on its return.
YouTuber has recently ranked high among children’s desired careers. Although it may seem like an easy way to earn money, only a small minority make meaningful income. Consider your aptitude and prospects for success before pursuing it professionally.
U.S.–Korea Tax & Accounting Support
Planning U.S. expansion or reviewing a cross-border tax or accounting matter? Speak with our U.S.–Korea team.