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If you’ve explored TikTok, you know its captivating scroll. But it’s not just for dancing; it’s a monetizable audience-builder. Just like YouTube, Twitch, and OnlyFans, the ATO keeps an eye on money-making platforms.
Whether for fun or profit, TikTok creators need tax awareness. If you’re earning, seek a tax pro’s guidance for a smooth TikTok tax return.
Simply put: yes. Money is money, and the ATO doesn’t care what method you use to earn it. Even if you’re doing TikTok on the side, any money you earn from TikTok is potentially taxable. Any earnings from sponsorships, endorsements, gifts, or merchandise must be reported on your tax return. Properly track all income sources, using tools like Xero or spreadsheets, to simplify tax reporting.
You may feel like your TikTok account is just a bit of fun – so why should you pay tax on it?
If you’re getting the occasional small gift from a fan, then it’s likely the ATO won’t see that gift as taxable income.
But essentially you’re seen as running a business if you:
Realized your TikTok income is taxable? Good news: as a creator, deduct your legitimate business expenses, reducing your taxable profit and tax burden. Be cautious, though; while some expenses qualify, others like personal clothing and makeup don’t. For an expense to count, it must be solely for video creation, not personal use. For instance, a costume distinct to your videos is deductible, but everyday attire used on occasion isn’t.
Anything you purchase specifically for the running of your TikTok channel may be deducted as a business expense. This could include things like –
If you choose to file your tax return yourself, it can be filed with the ATO through your myGov account. Alternatively, get in touch and take the stress out of tax time.