Online Sellers

Tax help for online course creators

Course and digital-product sales are reported on a 1099-K, and your production and platform costs are deductible.

Prepared by real tax specialists — with Enrolled Agent or CPA review when your return calls for it.

Online course creators report on Schedule C, selling digital courses, memberships, and downloads through platforms or their own checkout.

Because there is no physical inventory, the focus shifts from cost of goods sold to the production, hosting, and marketing costs of building and selling the course.

Income you’ll report on: 1099-K.

Save money

Deductions for online course creators

Most people in this line of work leave money on the table. Here's what we make sure to capture:

  • Course platform and hosting subscription fees
  • Video, audio, and screen-recording equipment
  • Editing and course-authoring software
  • Contractor fees for editing, design, or captioning
  • Advertising, email, and funnel tools
  • Payment processing fees
  • Stock media and licensing for course content
Watch out for

What makes your taxes different

  • Platform and processor payouts are reported on a 1099-K covering gross sales before fees
  • Digital products generally have no cost of goods sold, so net profit hinges on tracking production and platform expenses
  • Refunds under a money-back guarantee reduce reportable revenue and must be netted out
  • Sales tax on digital goods varies by state and may need to be collected and remitted separately
FAQ

Frequently asked questions

Do online course creators pay self-employment tax?

If you earn as an independent contractor, yes — self-employment tax is 15.3% (Social Security and Medicare) on your net profit, on top of regular income tax. You deduct half of it, and every business deduction lowers what you owe. We handle the calculation on Schedule SE.

What can online course creators write off?

Common write-offs include course platform and hosting subscription fees, video, audio, and screen-recording equipment, editing and course-authoring software, contractor fees for editing, design, or captioning, plus a share of your phone and any home-office use. We go through your year line by line so nothing legitimate gets missed.

Do online course creators need to pay quarterly estimated taxes?

If you expect to owe $1,000 or more for the year, the IRS generally wants quarterly estimated payments to avoid an underpayment penalty. We calculate them so next April isn't a surprise.

Do I have to report income if I didn't get a 1099?

Yes. Your income is taxable whether or not a client or platform sent a 1099. We report it correctly and offset it with every deduction you qualify for.

Taxes handled · so you can get back to work.

Tell us what you've got and we'll come back within one business day with the plan and the price · from a preparer who knows your line of work.

Tell us what you’ve got