Part of the Creator Tax Series by Tax.Travel

This article is part of Antravia’s Creator Tax Series - a collection of practical guides for U.S. travel bloggers, influencers, and online creators. Whether you earn from affiliate links, brand collaborations, or content produced abroad, these resources explain how to stay compliant with the IRS, claim the right deductions, and build a real business around your creative work.

Is your Travel Blog a Hobby or a Business? | IRS Rules for Creators in 2025

1. Why the Hobby vs Business Rule Matters

If you earn income from travel content, so either through ads, sponsorships, affiliate links, or digital products, the IRS expects you to declare it. The classification of that income determines what you can deduct and how your return is treated.

Under Section 183 of the Internal Revenue Code, the IRS uses what’s known as the hobby loss rule. Its purpose is to stop taxpayers from claiming business losses for activities that are mainly personal or recreational. In 2025, these rules remain unchanged and apply to all U.S. creators, whether they live in the United States or abroad.

If your activity is recognised as a business, you can deduct ordinary and necessary expenses under Publication 535 (Business Expenses). If it’s treated as a hobby, you must still report income, but you can’t deduct related costs.

2. How the IRS Decides

The IRS applies a nine-factor test to judge whether you have a genuine profit motive. No single factor is decisive and the IRS looks at the overall pattern of behaviour.

Key questions include:

1. Do you keep accurate books and records?

2. Do you put time and effort into making the activity profitable?

3. Have you made a profit in three of the past five years?

4. Do you depend on this income for your livelihood?

5. Do you adjust your methods to improve results?

6. Do you have business knowledge or consult experts?

7. Have you made a profit from similar activities in the past?

8. Does the activity show potential to appreciate in value (for example, building brand equity)?

9. Are losses mainly due to circumstances beyond your control?

If you can demonstrate several of these, the IRS is more likely to accept that you’re running a business.

3. What counts as a Business?

When your creative work is structured with clear profit intent, the IRS treats it as a business. You’ll file:

• Form 1040 + Schedule C to report income and expenses.

• Schedule SE for self-employment tax (15.3 % in 2025, unchanged from 2024).

• Form 1040-ES for quarterly estimated tax payments if your net income exceeds $400.

Being recognised as a business allows you to deduct legitimate operating expenses — from website hosting and equipment to travel that’s directly related to content production.

2025 note: The self-employment tax rate remains 15.3 % (12.4 % Social Security up to $168,600 of net earnings and 2.9 % Medicare with no cap). [Source: IRS Publication 334 (2025).]

4. What happens if it’s a Hobby?

If your blogging or influencer activity lacks a clear profit motive, the IRS may classify it as a hobby. You must still report the income on your Form 1040, but you cannot deduct expenses to offset it.

This can be costly. A creator who earns $10,000 from brand collaborations but spends $8,000 on travel and equipment would pay tax on the full $10,000 if the IRS deems the activity a hobby. Since the Tax Cuts and Jobs Act (TCJA) suspended miscellaneous itemized deductions through 2025, hobby expenses cannot be deducted even as itemized “2 % miscellaneous” costs.

5. How to prove you’re running a Real Business

To be treated as a business, you must show objective intent to make a profit. The IRS doesn’t expect you to succeed immediately but it expects to see structure and effort.

Strong indicators include:

• A separate business bank account and payment processor.

• Invoices or contracts for sponsorships and brand work.

• A website or media kit that clearly markets your services.

• Documented advertising and promotional spending.

• A basic profit-and-loss record or accounting software.

• Consistent tax filings, even if early years show losses.

Professional behaviour and accurate records are your best evidence of commercial purpose.

6. What you can deduct as a Business

If your work qualifies as a business, you can deduct any expense that is ordinary and necessary for earning income. Common examples for creators include:

• Website hosting, domain registration, and design.

• Cameras, laptops, lighting, and editing software.

• Travel directly tied to content creation (with documented purpose).

• Internet, subscriptions, and cloud storage.

• Marketing and social-media promotion.

• Accounting or professional-service fees.

Personal or dual-purpose expenses must be separated. For example, a vacation where only part of the trip involves paid work must be apportioned carefully.

7. Why do so many Creators get it wrong?

Most creators who face IRS challenges don’t intend to mislead but they simply lack records. Payments from PayPal, Stripe, or affiliate networks can seem casual, but from the IRS’s perspective they are income.
As of 2025, Form 1099-K is issued for aggregate payments of $5,000 or more through third-party platforms (IRS Notice 2023-74). Even smaller transactions can trigger reporting once the final lower threshold is implemented.

Creators who treat their work as a business from the start, so registering properly, tracking expenses, and filing quarterly can avoid costly corrections later.

8. A note for Travel Agents

The same principles apply if you’re starting a travel agency. The IRS could treat your operation as a hobby if you make only occasional bookings, operate informally through personal contacts, or never show a profit.
A travel agent is viewed as a business when they:

• Have a business registration or host-agency agreement.

• Maintain a separate bank account and accounting records.

• Actively market to clients and track commissions.

• Show intent to make a profit in a reasonable timeframe.

If your travel-planning activity is still casual but you intend to grow, formalise it early. It will strengthen your ability to deduct costs such as marketing, software, and professional fees.

9. Conclusion

Whether you’re a travel blogger, influencer, or independent travel agent, the IRS looks for structure, record-keeping, and an intent to make money. Treat your passion like a business: set up proper accounts, keep receipts, and document every transaction. Doing so not only protects your deductions but also builds the foundation for a profitable, professional enterprise.

Looking for more creator tax guidance? Visit tax.travel/travel-creators-and-influencers for detailed resources on IRS rules, deductions, and filing requirements for U.S. bloggers and influencers.

Need help with your creator taxes?

Antravia supports U.S. travel bloggers, influencers, and online entrepreneurs with expert accounting and tax guidance. We help you file accurately, claim the right deductions, and structure your creative income like a real business.

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References

• IRS Publication 535 – Business Expenses (2025): https://www.irs.gov/publications/p535

• IRS Topic 503 – Deductible vs Non-Deductible Hobby Expenses (2025): https://www.irs.gov/taxtopics/tc503

• IRS Publication 334 – Tax Guide for Small Business (2025): https://www.irs.gov/publications/p334

• IRS Notice 2023-74 – Form 1099-K Reporting Threshold Update (Dec 2023): https://www.irs.gov/newsroom/irs-announces-delay-for-new-form-1099-k-reporting-threshold

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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