The US Federal Tax System (IRS) treats every creator as a self-employed taxpayer, meaning they are responsible for withholding their own taxes. This means they owe both federal income tax on their profits and self-employment tax covering Social Security and Medicare contributions. If you expect to owe $1,000 or more in federal taxes for the year after subtracting withholding and credits, the IRS requires you to make estimated quarterly payments. This is not optional for creators earning real income. The IRS charges interest on underpayments at a 7% annual rate, compounded daily, for the first quarter of 2026. However, penalties from earlier quarters continue to accumulate separately. Every dollar earned from content is taxable, including gifts and tips, and must be reported for competing product experience or non-monetary exchange exchange.