YouTuber Taxes in Kentucky - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a YouTuber in Kentucky

From showcasing the beauty of the Bluegrass State to sharing unique content, being a YouTuber in Kentucky offers exciting opportunities – but it also comes with tax responsibilities. As a content creator earning income through platforms like YouTube, understanding your tax obligations is crucial for staying compliant with both federal and Kentucky state regulations.

The IRS considers YouTube income as self-employment income. This means all earnings over $400 must be reported to the IRS on Schedule C (Profit or Loss from Business) with your Form 1040. Furthermore, this income is subject to self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and minimize your tax liability.

How Kentucky Handles Gig Worker Taxes

As a Kentucky resident earning income as a YouTuber, filing a Kentucky state income tax return is required, even if no Kentucky income tax was withheld. Kentucky operates under a flat income tax rate, currently at 4.0% for the 2025 tax year. This applies to all levels of taxable income. Self-employment income reported on your federal Schedule C flows to Form 740, Kentucky Income Tax Return for Individuals. Specifically, you will use Schedule SE (Self-Employment Earnings) to calculate your Kentucky adjusted gross income. Kentucky also requires you to pay estimated taxes quarterly if you expect to owe $500 or more in state income tax. Failure to do so may result in penalties. Kentucky offers various credits and deductions, so exploring these options can help reduce your overall tax burden. Remember to keep detailed records of all income and expenses related to your YouTube channel. The Kentucky Department of Revenue provides comprehensive information and resources for self-employed individuals; you can find more details at the Kentucky Department of Revenue website.

Key Tax Deductions for Home-Based YouTubers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for your YouTube business. “Exclusive use” means that portion of your home is used solely for business purposes – it cannot be used for personal activities. “Regular use” means you use the space consistently for your YouTube work. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of equipment essential to your YouTube channel is generally deductible. This includes computers, cameras, microphones, lighting, and editing software subscriptions (like Adobe Creative Cloud or Final Cut Pro). If an item has a useful life of more than one year (e.g., a computer), it may need to be depreciated over several years.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. For example, if 75% of your internet usage is for your YouTube channel, you can deduct 75% of the bill. Maintaining a log of business-related usage is recommended.

Note on Mileage: As a home-based YouTuber, mileage deductions are less common. However, if you occasionally travel for client meetings, filming locations outside your home, or to purchase business supplies, you can deduct those miles using the standard mileage rate set by the IRS.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from an employee’s paycheck. As a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income.