Think Media: "Creators do this too late." Getting organized with taxes is crucial for creators.

Think Media Podcast posted this video to address a common frustration among content creators: understanding and navigating taxes. It's crucial for creators at all levels, from beginners to those earning substantial income, as proper tax strategies can significantly impact their financial well-being and long-term success.

The video features Jasmine, the Creator's Tax Strategist, who breaks down 15 tax tips for creators. Sean, from Think Media Podcast, starts by asking about the biggest tax mistakes creators make. Jasmine emphasizes the importance of financial organization: "The first tax mistake is…they're not tracking their numbers…There is no expenditure report of income expenses…So the first mistake I would say I see frequently is that there are no financials." She suggests using QuickBooks connected to a dedicated business bank account and credit cards to track income and expenses efficiently.

Sean and Jasmine discuss the importance of treating content creation as a business, not a hobby, from the outset. Jasmine emphasizes the role of intention: "I wouldn't say it's about how much is coming in every month. I would say it's about your intention. If you are going to treat this as a business and not as a hobby, it's never too early…" This mindset shift from content creator to CEO of a small media company is crucial for long-term success and tax planning.

The core message of the video revolves around proper financial management and leveraging tax strategies. As Jasmine explains: "If done right, there's nothing shady about tax strategy. So the tax code is a menu, and most people, most creators just don't know what's on it." She stresses that understanding and utilizing available tax strategies can lead to significant savings, even tax-free income in certain situations, all while remaining ethically compliant.

This message resonates with tax professionals across the web. Forbes Advisor, for example, highlights various tax deductions for small business owners, emphasizing the importance of utilizing available deductions to minimize tax liability. Similarly, the IRS website provides resources for self-employed individuals, detailing legal tax deductions and credits that can lower their tax burden.

The discussion continues with Jasmine clarifying the difference between startup expenses and operational expenses, emphasizing that while creators can invest heavily upfront, deductions are limited in the first year without revenue. She also clarifies how side hustle income can offset W-2 income, potentially leading to tax savings.

She advises creators to file taxes, even considering extensions to reduce audit risk, particularly for S corporations, which are "roughly 1,500% less likely to be audited" when filing on extension. Jasmine reinforces the importance of accurate quarterly tax payments based on both financial statements and the implemented tax plan. She also discusses the concept of write-offs (deductions) and emphasizes the importance of ensuring expenses are reasonable, ordinary, and necessary for business income generation.

Key takeaways

• Organization is Key: Track your income and expenses meticulously from the start using tools like QuickBooks and dedicated business bank accounts.
• Intention Matters: Treat your content creation as a business, not a hobby, to unlock tax advantages and position yourself for growth.
• Tax Strategy is Essential: Understand and leverage available tax deductions and credits to minimize your tax liability legally and ethically.

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