Tax Prep in 47 Minutes | Karat Blog

Tax Prep in 47 Minutes

A CPA's complete tax prep checklist for creators: gather income docs, categorize expenses, and close the year in under an hour.

Tax Prep in 47 Minutes

This week in the Discord, we had a CPA walk us through how to prepare for tax season as a creator in under an hour. Missed the conversation? Join the Discord to watch the replay.

The 47-Minute Tax Prep Checklist:

• • Gather your income documents (0-5 min). 1099s from brands, YouTube, platforms. Bank statements. PayPal/Venmo records.
• • Gather your expense records (5-20 min). Equipment, software, subscriptions. Home office deduction. Travel for content. Professional development.
• • Organize by category (20-35 min). Use a spreadsheet or accounting software. Categorize every expense.
• • Calculate your estimated tax (35-47 min). Multiply net profit by roughly 25-30% for federal + self-employment tax. This is your approximate tax bill.

Key Deductions for Creators:

• • Home office deduction - if you have a dedicated workspace at home, you can deduct a portion of rent/mortgage and utilities.
• • Equipment - cameras, microphones, lighting, computers, phones used for content.
• • Software and subscriptions - editing software, project management tools, social scheduling tools.
• • Internet and phone - the business use portion is deductible.
• • Education and courses - anything that helps you improve your craft or business.
• • Travel - if you travel for content creation or brand partnerships.