 from advertisements alone. Part of that revenue is used to pay video creators, so every YouTuber should learn about the service that makes it all possible: 

This invaluable tool helps creators monetize their content with ads. It’s one of the first steps to building a YouTube career, which requires several steps:

Creators join YouTube with two goals in mind - attracting 1,000 subscribers and 4,000 hours of channel Watch Time. Once that happens, creators can apply for the 

As part of the YPP application, creators must set up a Google AdSense account to collect ad revenue.

Google AdSense serves ads on creators’ videos. To increase the likelihood of viewers watching those ads, Google AdSense uses 

 to match relevant ads with viewers' interests.

YouTube’s hardworking creators get paid.

Google AdSense and the YouTube journey are complex, so of course, there are fine-print details to understand. Most importantly, YouTube's ad revenue is shared between the platform and its creators. Channels in the YPP earn 55% of the revenue while YouTube takes the remaining 45%.

That’s the high-level summary of how the ecosystem works. But to learn more, just keep reading.

What Kind of Ads Are Shown on YouTube Videos?

There are several ad formats on YouTube. When you monetize a video, you may see any of the following 

 - Desktop ads that appear to the right of a video, directly above YouTube’s video suggestions.

 - Semi-transparent desktop ads that appear near the bottom of a video.

 - Desktop, mobile, and TV ads (including gaming consoles) that can be skipped after 5 seconds. These appear at any point in a video.

 - Desktop and mobile ads that can’t be skipped.

- Non-skippable desktop and mobile ads of up to six seconds.

 - Desktop and mobile ads that show content related to the video’s topic (products, courses, etc.).

How Much Money Can You Make From Google AdSense Revenue?

In July 2020, YouTube announced a new revenue metric called 

 (revenue per mille). It helps creators understand their earnings by showing the total revenue earned per 1,000 video views.

When you want to track your monthly income, this is the number to pay attention to. It includes the ad revenue you’ve earned 

 YouTube takes its 45% cut, which is helpful information. RPM also includes the money you’ve made from YouTube’s extra monetization features, such as 

To view your RPM, go to the YouTube Studio and click the revenue tab on your channel analytics page. If you need a tutorial on how to do that, we’ve got one for you right here:

Because RPM is a new metric, there isn’t much data on the average RPM for creators. CPM, however, is not new. This term stands for cost per millie and represents the cost of every 1,000 ad impressions on YouTube. Viewing this number tells you what YouTube is charging advertisers before the platform takes it’s 45% cut.

CPM focuses on advertising prices alone, so use this metric for a broad view of Google AdSense earnings. According to 

, the average CPM is between $6 and $8 in the U.S. Under this range, advertisers would pay $6 to $8 per 1,000 ad impressions.

Creators don't receive the entire CPM, though. After YouTube takes it’s 45% cut, you can expect to make $3 to $4 per 1,000 video views (on average).

Which Content is Considered Advertiser Friendly?

Not all content is suitable for advertisers. If you want to make decent money on YouTube, consider making videos that are 

. That means creating content free of strong profanity and inappropriate themes.

To stay in the clear, refrain from including these 10 things in your content:

The best way to create advertiser-friendly content is to follow 

 shares valuable tips on that subject, so be sure to check it out.

Remember, many advertisers prefer to place ads on positive videos. Therefore, Google AdSense won’t serve ads on content that doesn’t support advertisers’ mission.

How Long Does it Take For YouTube Creators to Receive AdSense Revenue?

Getting your first YouTube check may take a while. Before you can receive the funds in your Google AdSense account, you need to reach the payment threshold in your location.

In the U.S., that amount is $100. Once creators have earned that figure or more, YouTube will send the funds to their bank account. If you live outside of the U.S., use 

 to see the payment threshold in your country.

When you reach the payment threshold during any particular month, your earnings appear in Google AdSense near the middle of the following month. So if you earn $200 in January, you’ll see that revenue in your Google AdSense account in mid-February.

Typically, the funds reach your bank account that same month. If they don’t, that means one of three things: There’s a hold on your Google AdSense account, monetization was suspended on your channel, or you violated YouTube’s monetization policies. To troubleshoot, view the YouTube Partner Earnings Overview on 

Google AdSense Revenue and Local Tax Laws

Depending on where you live, your Google Adsense earnings could be taxable income. Local tax laws vary, so YouTube won’t deduct this money from your revenue. Instead, each creator is responsible for handling their taxes, which usually means saving the portion of their income that’s owed to the government.

If your YouTube income is taxable, here are some filing tips:

In some cases, you have to report your Google AdSense revenue on your taxes - especially if you earn more than a specified amount. If so, Google will provide you with the appropriate tax forms. But even if it doesn’t, you should report 

 from your taxes. Be sure to view an updated list of those expenses and use them as a tax write-off.

No matter what, always speak to a tax professional. Our advice (and Google’s) is incomplete and shouldn’t be used by itself when filing taxes.

YouTube and Google AdSense are a complicated pair. But after reading this guide, hopefully, you understand how to optimize your ad revenue and make more money on YouTube - which is the ultimate dream for creators.

If you take the time to understand how Google AdSense works, you'll be one step closer to making more money on YouTube. Start today by reading this helpful, in-depth guide.

Google AdSense 101: How to Benefit from Ad Revenue on YouTube

Did you know you can restrict certain ads so they don't run against your videos if you have monetized your channel? Many creators aren’t aware of this feature, but it comes in handy when you want to keep your channel controversy-free.

Right now, political campaigns and religious beliefs are two of the most heavily debated topics on the internet. There’s a 2020 presidential election approaching in the U.S., and year-round, religious debates float from one corner of the internet to the next. By blocking such ads, you can stop awkward, sometimes off-putting messages from reaching your viewers.

Want to restrict these ads right now? Here’s what you need to do.

How to Block Unwanted Ads on Your YouTube Videos

 account.
2. Once you’re in, select ‘Blocking Controls’ from the left menu.
3. In the expanded menu below ‘Blocking Controls’, click ‘YouTube Host’.
4. In the new page that opens, click the ‘Sensitive Categories’ block in the middle of the screen.
5. Next, you'll see a list of ad topics. Disable the ones you don’t want to see by switching the toggle button from ‘Allowed’ to ‘Blocked’.

Want a visual rundown of these instructions? Watch our video tutorial for helpful screenshots highlighting exactly where to click:

From drugs and supplements to get rich quick schemes, the list of ads you can block or allow is pretty long. Scroll to the bottom, and you’ll even see which ads may appear on YouTube videos that are already ad-restricted, such as alcohol and gambling.

If you want, you get really granular and block specific websites from advertising on your channel. To do that, return to the previous page and click ‘Advertiser URLs’ in the middle of the screen. From here, you can type in any URL and block ads that lead to those websites.

Lastly, you can restrict entire advertising categories on your channel. Simply return to the previous page, click ‘General Categories’, and explore all the topics you’d like to block. There are layers upon layers to choose from, so you have tons of customization options here. For example, you can click ‘Beauty & Personal Care’, and that brings up another list of topics to consider. You could end up disabling ads about deodorant, shaving cream, toothpaste, or whatever you’d like to eliminate, as shown below:

What to Consider Before Blocking YouTube Advertisers

As you explore your AdSense account, keep in mind that restricting or allowing certain ads is a balancing act. Of course, it makes sense to restrict advertisers when you don't like what they’re promoting. But at the same time, you don't want to under-monetize your videos to keep one advertiser away. Just remember to handle your selections with care!

In addition to that, here are some extra things to know:

- If you’ve joined a multichannel network (MCN), you may not be able to block ads via AdSense. Instead, contact the network directly.
- Be careful when blocking entire ad categories. You may accidentally restrict ads you’re perfectly happy with.
- If you decide to block an ad category, bookmark the AdSense website, and set a reminder to check those categories in a few months. You don’t want to lose tons of money by accident!

Placing ads on your videos may seem like an easy, innocent thing. However, we sometimes forget the consequences of this practice. We know ads can earn creators money, but in the long run, no one knows which ads will play. If you have strong ethical beliefs and don’t want to see these ads, do what you feel is right - even if that means turning them off.

If you want to take your YouTube channel to the next level and get more views on YouTube then make sure to 

. Join over 1 million other users and use vidIQ to help you research YouTube, analyze videos, audit your own channel, and take actionable steps to succeed.  ​ ​ ​

And if you’re really serious about growing your YouTube views and subscribers, sign up for exclusive access to the 

 and learn how to launch a successful YouTube Channel.

Tired of seeing cringey political messages and other sensitive ads on your videos? Block them from your channel in five easy steps.

How to Block Unwanted Ads on Your YouTube Content

 and have the ability to monetize your video content, you may already know that the threshold for inserting mid-roll ads into videos is now 

So, instead of uploading 4 videos a month at 10 minutes long, could you publish 5 videos at 8 minutes long and still earn the same mid-roll ad revenue? To answer this incredibly hypothetical question; __

This change is retroactive, meaning that any videos you previously published to your channel (that are between 8 and 10 minutes long) are now eligible for mid-rolls. Oh, and YouTube has automatically turned them on for you unless you opted out before the change. For more information, take a look at our video regarding this significant update ⬇️

YouTube Mid-Roll Ads and Your YouTube Audience

Now, this all seems like great news, right? YouTube can earn more revenue from adverts, and creators can place more adverts on videos to generate advertising revenue. Also, advertisers can pick and choose from more videos in a bid to reach their intended target audience.

On the one side, we have creators, and on the other side, we have viewers, and what connects these two is the distribution platform known as YouTube

The moment you as a creator, put an advert in your video, you are creating an obstacle, a potential barrier to the value that the viewer is going to get from your content. But at the same time, you as a creator, want to be able to generate revenue, because can't always make YouTube videos for free.

So, on the one hand, you've got to build your community, and on the other hand, you need to build your YouTube business. It’s a fine balance, but there are ways you can achieve it.

, Tom Martin, about best practices around mid-roll ads, especially know YouTube has updated this feature. Check out Tom’s 

vidIQ: Tom, the move to allow mid-roll ad inserts to videos of 8 minutes and over is new. What should creators know about the change?

 Before the feature went live on the 27th of July, YouTube sent out an email to creators that give them the option to opt-out of the auto insertion of ads across their channel.

At first, I was under the impression that it would only apply to qualified videos uploaded after that date. But from what I've heard from other creators, it applies to all videos that can benefit from monetization. That means that unless creators chose to opt-out before the 27th of July, mid-rolls have automatically been injected.

Now, that’s great for many creators in the 

, because they don’t have to really lift a finger to benefit from the change. But I know others aren’t happy with the placement of ads in their 8+ minute videos and are having to manually update each video. And in some cases, we are talking of hundreds, if not thousands of videos.

I believe there used to be a way to bulk edit ad placements, but I don't think that works anymore, because I could no longer find that option.

vidIQ: Does it really matter where a mid-roll ad is placed on a qualifying video?

 It does to a lot of creators, yes. In fact, many channels choose not to enable mid-rolls at all as they find them too disruptive to their viewers. Yoga videos for example, or music videos where a mid-roll ad would seem really out of place.

As it’s an automated process, YouTube can’t necessarily choose the very best placement for the ad, in the same way a human would. That's why I don't automatically use YouTube’s suggested ad breaks. Instead, I place every one of my midroll ads manually, and I always have done.

vidIQ: Can you change the position of a mid-roll ad after YouTube has inserted it?

 Yes, although it is a manual process. But I do it manually anyway because I think it's a better experience for the audience. Otherwise, there’s the risk that the ad could cut off the presenter mid-sentence, or something equally as jarring.

I believe you can also set up the feature so all future videos don't automatically insert a mid-roll ad on qualifying uploads. It's just that all of your old videos will now have been updated, so you’ll need to go back and turn those off if you want to.

vidIQ: Do you think this is a positive move from YouTube?

 I think, overall, it's really good for creators because it will stop people padding out their videos with extra content just to get past that 10-minute threshold. It must have unlocked millions and millions of videos that are between 8 and 10 minutes, which is definitely more revenue in creators' pockets.

YouTube attracts a lot of criticism regarding a perceived lack of communication about changes, but I actually think this was communicated well. It’s up to all creators or channel management teams to read their emails from YouTube and take the action they need to, so they don’t need to go back in and fix things.

It also makes perfect sense from YouTube's point of view. Obviously, they have lost revenue with a lot of the ‘Adpocalypse’ type events that have happened over the last few years, and with COVID-19, a lot of companies also reduced their ad budget in regard to the platform. With CPMs down, this is probably an attempt to try and get ahead of the curve for increasing revenues.

Think how much more money they will make by automatically turning these mid-rolls on rather than just sitting there letting people realize it’s an option then opting in. It's probably going to generate many, many more millions in the long run for YouTube.

How to Manage YouTube Mid-Roll Ads and Placements

A simple question for the YouTube viewer is, how many adverts do you think you are willing to go through in an eight-minute video? Our guess would be, at most, two. Also, it's really important to provide the viewer with some real value before you insert any adverts.

So, you're probably looking at your first mid-roll at maybe three or four minutes, and then another one in the five to six minute range.

Now, of course, you can leave all of this to YouTube to automatically insert the mid-roll ads, but if you are really strategic, you can place them exactly where you want to in your videos. This is how to do that:

Click on the ‘Monetization’ link in the left-hand menu

Once the mid-roll chat box is ticked, click on the ‘Manage Mid-Rolls’ link

A new dashboard will open that allows you to place or move mid-roll ads on your video

For the best viewer experience, place them strategically at points where you've created tension in the storytelling, or you've just revealed or about to reveal something integral to why the viewer clicked on the video in the first place.

Also, if you have pre-roll ads enable before your video even starts, don’t insert a mid-roll soon after. But also, don’t leave the ads until towards the end of the video. If half of your audience abandons your video in the first couple of minutes, because of poor audience retention, then they're never going to see those mid-roll ads and you're not going to earn the revenue from them. YouTube itself has some great advice about the placement of mid-roll ads:

How to Manage Mid-Roll Ad Breaks for Multiple Videos

If you want to turn mid-roll ad breaks on or off for multiple videos, just follow these steps:

From the left-hand menu, select ‘Videos’

Then select ‘Ad Settings’ from the ‘Edit’ menu

Toggle ‘Turn on ads during video’ to turn mid-roll ad breaks on or off

Now select ‘Update Videos’ and follow the steps displayed to confirm this change

If you want to take your YouTube channel to the next level then make sure to download vidIQ. It will help you research YouTube, analyze videos, audit your own channel, and take actionable steps 

If your channel is monetized, YouTube has now made mid-roll ads available to any video that’s 8 minutes or longer. This means YOU can earn more money!

YouTube Updates Mid-Roll Ad Rules to Benefit Creators

Tax Day is April 15th if you are resident in the US, and If you're lucky enough to make any kind of income from YouTube you have just a few days left to file your personal income tax return including your Schedule C for any self-employed earnings you received in 2019. If you haven’t filed yet, we confirm 10 types of expenses you can deduct if you are a YouTuber in the USA.

We spoke with Devin Weber the VP of Operations for 

. Devin is a Certified Public Bookkeeper and Enrolled Agent with the IRS. She has managed the finances for Braille Skateboarding for 6 years and is one of those rare people who enjoys preparing taxes.

 This post is intended as purely informational. You should always consult a professional tax attorney or CPA if you are unsure about your tax filings.

3 Essential Things to Know About Filing Taxes as a US-based Video Creator

Before we dive into the expenses you can claim as tax-deductible let’s take a look at some essentials that every YouTuber or video creator that’s making a living online should know:

The bottom line is if you earned more than $400 from YouTube in 2018 you need to declare that to the IRS. If your income from YouTube was more than $600 in 2018, Google is legally required to provide you with a 1099 form (

). If you’ve worked with any brands or sponsors as part of a YouTube collaboration or promotion, and you earned more than $600 from those sources, each brand or sponsor will also need to provide you with a 1099 form. Even if they do not provide you with a 1099, you know you earned that money and you should report it as part of your total receipts.

#2 There is No Gray Area for the IRS When it Comes to Declaring Income

According to Devin, far too many people claim tax deductions are a ‘gray area’ but when it comes to the IRS there are absolutely no gray areas, to them it’s “black or white" and while you as a contractor might believe you can slip questionable expenses through, the IRS is not here to play. You better be 100% confident that, if you got audited, you could argue and win the case for that expense. If you don't and you feel like you're getting away with something, don't take that chance.

An IRS audit will shine a spotlight on every part of your financial history, and uncover every penny of unreported income, and every penny of expenses that were really personal rather than business use. That is something you really, really want to avoid.

However, the IRS understands that it costs to live and to run a business as a freelancer, so there are so many deductions they allow you. At the end of the day, it’s foolish to keep any income hidden, as, in most cases, you legitimately can find deductions to balance out the majority of that income.

#3 You Can File an Extension (On Paperwork not Payment)

Filing taxes in the US can be an overwhelming experience and the 

IRS does offer the option to file an extension

 if you need it. However, if you believe you will owe the IRS money on 2018 earnings, you will still need to submit that payment on April 15th 2019 - the extension is simply an extension of time to file, not an extension of time to pay.

10 Tax Deductible Expenses for US YouTubers

For the IRS to recognize a legitimate business expense that qualifies as tax-deductible, it must be classed as both ‘ordinary’ and ‘necessary’. You can find out further information regarding these rules on the 

For any YouTuber, the process of video creation is going to come with some kind of cost, especially if that creator wants to publish content with higher production quality. Even if the creator films with an iPhone (more about that in section 4), the chances are they might progress to a dedicated camera and microphone as well as other hardware. Keep the receipts and as a dedicated video creator, you can absolutely claim back these expenses as tax-deductible.

It’s a super talented creator that can upload every video they make to YouTube without any tweaking or editing. If you invest in a computer that you use to edit and upload, you can claim that purchase as part of your tax-deductible expenses - as long as the main use of that computer is for your business. Yay.

If you create or edit video content from home and have a specific area dedicated to that pursuit (i.e. a desk or a corner of the living room or bedroom), then the IRS will allow you to claim a percentage of your home costs (rent, utilities) against that.

However, it takes some working out to understand what percentage you can claim against. A very simplified example is ff your home is 1,000 square feet and, the space that you use is 100 square feet, well then 10% of all the costs of your home are going to count against your home office. You can find out more about writing off home office expenses in this 

You can legitimately claim against Internet and cell phone costs - but only the business portion of the usage. If a YouTuber buys an iPhone for $1,200 and they use it for personal stuff 40% of the time, and they make and edit their videos and upload them and answer comments 60% of the time then, they can only take 60% of that cost as an expense, not the 100%.

So many business owners make the mistake of taking 100% and that is not correct You will, if you get audited, owe money. Find out more from this 

Running any kind of freelance business carries its own supplies costs, and it’s no different for YouTubers. For instance, alongside cameras, mics, green screens, etc, a science channel may have a legitimate reason to purchase a microscope or lab equipment, while a beauty blogger might need to invest in the latest Jeffree Star palettes or Kylie Jenner lip kits as part of the reviews they upload to YouTube.

Braille Skateboarding not only invests in skateboarding equipment, but they also claim expenses for any props or extra equipment they use in shoots (

For any serious YouTuber, the process of video creation can be costly. However, different creators will have different expenses depending on...almost everything. Luckily, the IRS will let you write off supplies directly related to your business if they are ‘necessary’ and ‘ordinary’ which means that YouTubers shouldn’t be held back in purchasing equipment if it directly relates to them earning a living. Just keep every receipt and confirm on every receipt the video that particular supplies relate to. If you're unlucky enough to be ever audited and the IRS discovers a claim for, say, $300 worth of mascara, you can provide evidence via that video you created around the best mascara brands of 2018 that generated 1.2M views. The IRS will think that’s acceptable.

Office supplies also fall under this category so go ahead and claim that printer and ink, those folders and binder clips, that dry erase board, and that desk and chair.

No matter how talented a video creator you are, there will be some skills you are going to need help with as part of your YouTube journey. You may take on an assistant, or outsource help with editing, social media, costume design, bookkeeping, or 100 other things, and the chances are those businesses or individuals will require payment for their services. The good news is that you can claim against those expenses!

However, just as any company or individual you work with on a freelance basis should legally provide you with a 1099, you need to do the same for your subcontractors if you have paid them over $600 in 2019. Those individuals can then report the income on their own taxes.

Anyone you pay money to as part of being a YouTube creator is a tax-deductible expense for you, but reportable income for them (via a W9 form from them which confirms their name, address, and SSN). Remember, the IRS wants those taxes no matter who it is so if you deduct it and it goes to another person, they better report it.

#7 Travel Expenses (National & International)

There are a huge number of video creators whose sole focus is on publishing content around travel. Naturally, a good deal of expenses may be incurred as part of their business so keeping a very clear record of receipts is vital. There may be other creators who rack up expenses around travel throughout the year and may be able to make these tax-deductible if they can prove that travel was essential to the business of being a YouTube creator.

But beware - here comes one of those gray areas we talked about. To the IRS, there is a VERY clear distinction between business use and personal use when it comes to travel expenses. For instance, if you have a YouTube channel and you fly to Paris and you do an episode about the hidden gem bistro's of Paris as part of a holiday, you need to separate out the business part of it. Say, you are in Paris for 10 days and, for five of them, you're doing filming and business work, then for half of the time is business, and half of the time is fun. You can claim half of the travel expenses (50% of hotel costs, flights, etc) but you cannot claim for the whole trip if the whole trip is not dedicated to business.

Also note, the IRS only gives you a 50% tax deduction on meals and entertainment so, if you spend $100 on food, you're only going to get a deduction of $50. Again, check with your CPA if you are unsure, these are only guidelines.

#8 Local Travel Expenses Related to YouTube Business

Did you know that if you travel locally on YouTube business - say, to a coffee shop to do some editing, or to Target to pick up supplies - you can claim local transportation expenses? Not only can you claim on the mileage (currently at 55 cents per mile but this differs every year), but if you keep your receipt, you can also claim for any parking expenses. Any local travel expenses incurred, even toll charges can be tax-deductible if you keep proof of payment.

#9 Subscription & Software Licencing Fees

If you are signed up for any subscription services or pay license fees for software or other items directly related to your business, then you can also claim these as tax-deductible. For instance, if you’re a beauty blogger, and you have a regular subscription to a beauty magazine, you can claim against that.

Again, it’s up to you to prove to the IRS that any licenses or subscriptions you list have a direct impact on your business. The subscription had better tie into the way that you're making income, and you need to be honest about the money you’ve spent in order to make an income from YouTube. And, if you can show that it was, you're good. Some examples of the type of expenses you can claim for include:

You can also claim against bank fees incurred as part of running your YouTube Channel which includes expenses like Wire transfers, or if you pay a monthly fee for a business bank account, or incur PayPal charges. If you sell merch, you can also claim postage and packaging expenses, and if you have a PO Box, you can claim for that too!

There is no escape from paying taxes to the IRS, but if you ethically report your income and deductions and you're not lying about anything, you have absolutely nothing to be worried about.

Like it or not, everyone should pay their fair share of taxes. We have firemen and schools and roads that get repaired because people pay their taxes. But Devin states that “you should pay your fair share but not a penny more.” and take full advantage of the tax deductibles that are available to you.

If you want to take your YouTube channel to the next level and 

 then make sure to download vidIQ. Join over 1 million other users and use vidIQ to help you research YouTube, analyze videos, audit your own channel, and take actionable steps towards success. Just 

 and learn how to launch a successful YouTube Channel in just 30 days.

10 last-minute tax filing tips for US YouTubers - make sure you claim all your deductibles!

10 Last Minute Tax Filing Tips for US YouTube Creators

 This post is intended as purely informational. You should 

 consult a professional tax attorney or CPA if you are unsure about your tax filings.

Before we dive into the expenses you can claim as tax deductible let’s take a look at some essentials that every YouTuber or video creator that’s making a living online should know:

For the IRS to recognise a legitimate business expense that qualifies as tax deductible, it must be classed as both ‘ordinary’ and ‘necessary’. You can find out further information regarding these rules on the 

For any YouTuber, the process of video creation is going to come with some kind of cost, especially if that creator wants to publish content with higher production quality. Even if the creator films with an iPhone (more about that in section 4), the chances are they might progress to a dedicated camera and microphone as well as other hardware. Keep the receipts and as a dedicated video creator you can absolutely claim back these expenses as tax deductible.

It’s a super talented creator that can upload every video they make to YouTube without any tweaking or editing. If you invest in a computer that you use to edit and upload, you can claim that purchase as part of your tax deductible expenses - as long as the main use of that computer is for your business. Yay.

You can legitimately claim against Internet and cell phone costs - but only the business portion of the useage. If a YouTuber buys an iPhone for $1,200 and they use it for personal stuff 40% of the time, and they make and edit their videos and upload them and answer comments 60% of the time then, they can only take 60% of that cost as an expense, not the 100%.

Running any kind of freelance business carries its own supplies costs, and it’s no different for YouTubers. For instance, alongside cameras, mics, green screens etc, a science channel may have a legitimate reason to purchase a microscope or lab equipment, while a beauty blogger might need to invest in the latest Jeffree Star palettes or Kylie Jenner lip kits as part of the reviews they upload to YouTube.

Office supplies also falls under this category so go ahead and claim that printer and ink, those folders and binder clips, that dry erase board, and that desk and chair.

No matter how talented a video creator you are, there will be some skills you are going to need help with as part of your YouTube journey. You may take on an assistant, or outsource help with editing, social media, costume design, bookkeeping or 100 other things, and the chances are those businesses or individuals will require payment for their services. The good news is that you can claim against those expenses!

Anyone you pay money to as part of being a YouTube creator is a tax deductible expense for you, but reportable income for them (via a W9 form from them which confirms their name, address and SSN). Remember, the IRS wants those taxes no matter who it is so, if you deduct it and it goes to another person, they better report it.

There are a huge number of video creators whose sole focus is on publishing content around travel. Naturally, a good deal of expenses may be incurred as part of their business so keeping a very clear record of receipts is vital. There may be other creators who rack up expenses around travel throughout the year, and may be able to make these tax deductible if they can prove that travel was essential to the business of being a YouTube creator.

But beware - here comes one of those gray areas we talked about. To the IRS, there is a VERY clear distinction between business use and personal use when it comes to travel expenses. For instance, if you have a YouTube channel and you fly to Paris and you do an episode about the hidden gem bistro's of Paris as part of a holiday, you need to separate out the business part of it. Say, you are in Paris for 10 days and, for five of them, you're doing filming and business work, then for half of the time is business, and half of the time is fun. You can claim half of the travel expenses (50% of hotel costs, flights etc) but you cannot claim for the whole trip if the whole trip is not dedicated to business.

__#8 Local Travel Expenses Related to YouTube Business __

Did you know that if you travel locally on YouTube business - say, to a coffee shop to do some editing, or to Target to pick up supplies - you can claim local transportation expenses? Not only can you claim on the mileage (currently at 55 cents per mile but this differs every year), but if you keep your receipt, you can also claim for any parking expenses. Any local travel expenses incurred, even toll charges, can be tax deductible if you keep proof of payment.

If you are signed up to any subscription services or pay licence fees for software or other items directly related to your business, then you can also claim these as tax deductible. For instance, if you’re a beauty blogger, and you have a regular subscription to a beauty magazine, you can claim against that.

Again, it’s up to you to prove to the IRS that any licences or subscriptions you list have a direct impact on your business. The subscription had better tie into the way that you're making income, and you need to be honest about the money you’ve spent in order to make an income from YouTube. And, if you can show that it was, you're good. Some examples of the type of expenses you can claim for include:

 then make sure to download vidIQ. Join over 1 million other users and use vidIQ to help you research YouTube, analyze videos, audit your own channel, and take actionable steps 

We know that some of you have battled through a lot over the last 12 months just to get your content monetized. 1000 subscribers, 4000 hours of watchtime, and an agonizing application period. But, you finally made it. #HereComesTheMoney!

With the run up to Christmas you've probably seen your revenue from your YouTube videos gradually climb too... then BAM! Here comes January and all of sudden you are earning even less peanuts than you were this time last week. The question is WHY!?

In summary it comes down to economics. But the more important question should be why does this really matter, because if this REALLY concerns you, then I'm afraid you are REALLY selling yourself short!

Install the vidIQ Chrome Extension for free today: 

Why does your Adsense revenue do so badly in January?

Posts tagged with "adsense revenue"