Content creator with several income streams
Sponsorships, ad revenue, and affiliate income across a 1099-NEC and a 1099-K. Combining income streams, expensing equipment, and self-employment tax.
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Taxpayer facts
Who this is and what their year looked like.
Simone is single and a full-time content creator in Miami, making videos and posts across a few platforms. 2025 was her first full year at it.
Her money came from brand sponsorships (a 1099-NEC), platform ad and affiliate payouts (a 1099-K), and some direct merch and tips. She bought camera gear, pays an editor, and made estimated payments.
Source documents
The 3 documents you will prepare the return from: 1099-NEC (Nonemployee Compensation), 1099-K (Payment Card / Third-Party Network), Taxpayer's business records: Simone Carter Media.
Free with an account
Create a free account to open the taxpayer's facts and every source document. No card, nothing to cancel.
Objectives
What a correct return should capture.
- Report ALL business income on Schedule C: the 1099-NEC, the 1099-K, and the direct merch sales and tips.
- Deduct the business expenses. The equipment can be fully expensed under Section 179 on Form 4562.
- Total the expenses and arrive at the Schedule C net profit (line 31).
- Compute self-employment tax and take the one-half SE tax adjustment.
- Take the QBI deduction on Form 8995, and watch the 20%-of-taxable-income limit.
- Apply the standard deduction and the estimated payments to find the refund or balance due.
- Note that Florida has no state income tax.
Check your work
The answer key and the complete return, the way a real client receives it: the 1040 and its schedules, the workpapers behind every number, and the signature forms.
Stuck? Work through it with Yehuda
A one-on-one, 30-minute tutoring session on this return with Yehuda Tenenbaum, EA. Bring the spot where you got stuck and we will work through it together: how the forms connect, why a figure lands where it does, and how to check your work. $250. This is education on the practice return, not advice on your own taxes.