Self-Employed Is Your Pet Insta Famous? Here’s What It Means for Your Taxes Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Apr 11, 2020 2 min read Sign in to view my next refund Does your pooch have more Instagram followers than you do, receive free doggy swag bags and seem to be all-around living his #bestlife? If your furbaby is making money as an influencer, it could be viewed by the IRS as your own self-employed business if your pet is generating income for you in the dog modeling/acting category on a regular basis. In some cases, pet-related expenses could be considered business expenses and offset against your pet’s earnings. However, if your pet isn’t actively doing ongoing influencer activities and you are not generating a regular income and profit, the IRS may look at your pet’s overnight stardom as your hobby. If this is the case, you would have to claim the income as hobby income, however, you would no longer be able to deduct the hobby expenses that were deductible as miscellaneous itemized deductions prior to 2018 since miscellaneous itemized deductions were eliminated under tax reform. If Your Pup Gets His Paws on Swag If your dog is lucky enough to receive free doggie treats, trips and/or swag, the value of these gifts are considered income and must be reported on your taxes. Additionally, if your skateboarding kitty is sponsored and paid $600 or more per year to shred, you and your feline friend will most likely be issued a 1099-MISC at the end of the year. Don’t forget that while you may not receive a 1099-Misc for your kitty if he/she didn’t claw in $600 or more, you will still have to claim the income when you file. Picture Puuurfect If you’re paying for photo shoots, training, chow or grooming sessions for your pet influencer, these expenses are likely tax-deductible if they are directly related to your business income. Paying Quarterly Estimated Taxes If you are considered to have a business for your pet star and you think you will owe more than $1,000 at tax time, don’t forget to pay quarterly estimated tax payments by the quarterly deadlines in order to avoid any penalties. Pawfessional Help Don’t worry about knowing all these tax laws — TurboTax Self-Employed will ask you simple questions about your pet’s life in the spotlight and give you the business deductions that you deserve based on your unique tax situation. TurboTax Self-Employed searches for industry-specific deductions and can uncover unique business deductions specific to your tax situation. And if you need any additional help, you can connect live via one-way video to a TurboTax Live Self-Employed CPA or Enrolled Agent with an average 15 years experience to get your tax questions answered. TurboTax Live Self-Employed CPAs and Enrolled Agents are available in English and Spanish, year round and can even review, sign and file your tax return for you. Sign in to view my next refund Previous Post TurboTax and Create & Cultivate Share #SolopreneurTaxTips: Ep. 2 Next Post 5 Tax Implications and Tips if You Flip Things for… Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a Reply Cancel reply Browse Related Articles Tax Deductions and Credits Here’s Tax Deductions And Credits You Can’t… Taxes 101 Top Fun #TaxFacts You Need to Know Self-Employed Social Media Influencers: A Guide to Your Tax Return (a… Business Income 5 Tax Tips for Starting a New Business Self-Employed What Income and Expenses Do Social Media Influencers Ne… Self-Employed Do Creators Pay Taxes on Money Earned? Self-Employed Hobby Meets Hustle: How To File Self-Employment Taxes Self-Employed Hobby Meets Hustle: Self-Employed Tax Tips For Small Bu… Self-Employed Moving from Employee to Self-Employed? Here’s What it… 2022-03-23