Affiliate Marketing Taxes

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December 27, 2023

Tax Fairness - Every Texan

Affiliate Marketing Taxes

Affiliate marketers in the US are required to pay taxes on their earnings, similar to other professions. An exception exists for earnings below $600; in such cases, filing taxes may not be mandatory. If an affiliate marketer surpasses the $600 threshold, they must file taxes with the IRS, specifically using Schedule C during tax season.

What Taxes Do Affiliate Marketers Pay?

Affiliate marketers are obligated to cover both the employee and employer portions of Social Security and Medicare taxes, constituting a 15.3% self-employment tax. Additionally, affiliate marketers may be required to make estimated tax payments for state and federal income taxes to the IRS.

What About Tax Deductions?

Expenses related to your affiliate marketing business can qualify as tax deductions. Here’s some possible expenses you may be able to claim all or part of:

internet fees
retailer subscriptions (Prime, Walmart+)
office supplies
cell phone
computer and computer equipment
advertising fees
creative software or subscriptions
Website domain registration and renewal fees
professional services (website, CPA, etc.)
payment system fees (PayPal)
banking expenses
social media posting software
portions of your home and utilities
tax software
tax preparation fees
business cards
social media account verification fees
video editing software
employee pay & contracted labor
posting fees
education & training expenses
meals & travel expenses
email marketing expenses
startup expenses
office equipment (desk, chair, etc)

Tax Preparation Software

To streamline year-round expense tracking, explore the use of small business tax software for efficient financial organization. Here’s a few options that can make keeping up with your business’s financials much easier.