Barbara Schreihans • Sep 28, 2023

Are you someone who gets free things in agreement to show them off on your social media?

Perhaps you even claim the title of a social media influencer?

Even if you don't—let's talk about taxes and accepting free things from brands. 

If you find yourself trying to figure out if that luxurious vacation or designer handbag you got for free is considered taxable income—you're not alone.
The problem lies in the blurry line between gifts and payments in this new social media entrepreneurial world. 

Sometimes as an influencer you may get showered with presents from brands, and maybe it's hard to tell if it's just a friendly gesture or a form of compensation. 🤔 

According to the IRS, a gift is something given without any expectation of goods or services in return. 

But when influencers receive products in exchange for their work, it can be considered income. 

So, that fancy makeup or that stylish handbag you receive might actually have a price tag attached to it.

This is one of the many reasons it is extremely important to be working with a tax strategist!

If you're trying to DIY when it comes to your taxes…saving a few bucks on taxes now might not be worth the risk of an audit down the road.

Know this:

When companies go around handing out all these freebies, they are writing them off as tax deductions.

But here's the twist: 

To get that deduction, they often have to report those free products as income for the people they are sending them to. 👀 

So, it's a win for the company and a potential tax burden for you. 

We get it that it can feel like a whole new world for entrepreneurial social-media stars.

That's probably why a lot of our clients are social media influencers because we help them ensure they are paying the least amount in taxes possible while staying on the good side of the IRS.

Want us to run your numbers for free and show you how much you could potentially be saving every year in taxes?

CLICK HERE TO SEE IF YOU QUALIFY