## Tax Mistakes Creators Make

The costliest tax mistakes creators make: skipping expense tracking, missing quarterly payments, and how to avoid them all.

#### Tax Mistakes Creators Make

This week in the Discord, we had a CPA cover the most common and costly tax mistakes creators make. Missed the conversation? [Join the Discord to watch the replay.](https://link.trykarat.com/DiscordNL)

#### Most Common Tax Mistakes:

- **• Not tracking expenses throughout the year.** Most creators scramble at tax time because they didn’t track anything. Use an app or spreadsheet from day one.
- **• Not paying quarterly estimated taxes.** If you’re self-employed, you likely owe taxes quarterly. Missing these payments leads to penalties.
- **• Mixing personal and business finances.** Open a separate business bank account. It makes bookkeeping infinitely easier.
- **• Not deducting legitimate business expenses.** Creators leave thousands on the table by not claiming all their deductions.
- **• Ignoring 1099s.** Platforms and brands are required to send 1099s for payments over $600. Make sure you’ve received all of yours.
- **• Not working with a CPA who understands creators.** A general CPA may not know about creator-specific deductions. Find one who specializes in creators or self-employed individuals.

#### How to Fix These Mistakes:

- **• Set up a business bank account today.** Keep all business income and expenses separate.
- **• Use accounting software** like QuickBooks, FreshBooks, or Karat to automate bookkeeping.
- **• Set aside 25-30% of every payment you receive** for taxes. Put it in a separate savings account.
- **• Pay quarterly estimated taxes** in April, June, September, and January.