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 - [Updated Feb 12, 2024] 2 min read Reviewed by Katharina Reekmans, Enrolled Agent 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 can not deduct the expenses related to the hobby. Since tax reform, you are no longer able to deduct hobby expenses ( prior to 2018) since miscellaneous itemized deductions were eliminated. No h2 headings to generate jump links from. 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 is 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-NEC or 1099-MISC. Each 1099 is different, and it is possible if your pet received payments through a third-party platform (like PayPal) they may receive a 1099-K if they receive more than the threshold at the end of the year. Don’t forget that while you may not receive a 1099 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. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started now 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 ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?