I still get the same question from clients who film on weekends: if I posted it, can I deduct it? As of August 18, 2026, the Tax Court answered that in writing.
In Suleiman Sami v. Commissioner, T.C. Memo. 2026-69, a taxpayer who called himself an influencer tried to write off Grammys travel, Emmys tickets, and paid meet-and-greets with actors. He first called the costs charitable gifts. After that failed, he called them marketing. The Court allowed neither.
The numbers the Court left standing
Sami also worked as an IT manager, a chauffeur, and a ticket reseller. The social media following did not change the Code. The IRS assessed tax and the 20 percent accuracy-related penalty under section 6662(a):
- 2019: $63,219 of tax and a $12,644 penalty.
- 2020: $27,421 of tax and a $5,484 penalty.
- 2021: $39,910 of tax and a $7,982 penalty.
Judge and IRS agreed on the method: influencer work is a trade or business, or it is not. There is no third set of rules for people with a large following.
Section 162 still asks two questions
A deduction under section 162 has to be ordinary, necessary, and paid in a real trade or business. For creators, that usually breaks on one of two points.
First, purpose. Buying a meet-and-greet because you want to meet Matt Damon is personal. Buying it because you have a paid series, a sponsor contract, and a plan to produce content that earns money is a different fact pattern. You have to prove the second story.
Second, records. Section 274 still wants amount, date, place, business purpose, and who was there — written at the time, not rebuilt after an IRS letter. A caption is advertising copy. It is not a mileage log and it is not a receipt.
Sami lost on both. The events looked like personal entertainment. The paper trail did not meet section 274. Changing the label from “charitable” to “marketing” after the audit started did not help.
What an Alabama creator can still deduct
We have clients in Birmingham and Daphne who shoot video, sell digital products, or run brand deals on the side of a W-2 job. The Sami opinion does not close that door. It closes the door on “I posted it.” Costs that usually hold up when the activity is a business:
- Cameras, lights, mics, and editing software used to make the content you sell or monetize.
- Products bought to review or demonstrate, not to keep as household goods.
- Platform fees, stock media, web hosting, and ads tied to the channel.
- A home office used only for the work, on a regular schedule.
- Travel to a booked shoot, interview, or paid appearance — with the purpose written down before you leave.
A family trip to the beach that produces three Stories is still a family trip. Split the cost only if you can show which days were work and which were not. Be conservative.
The 20 percent add-on is the expensive part
The extra tax in Sami was large. The penalty on top of it is what surprises people. Section 6662 applies when the understatement comes from negligence or a substantial understatement of tax. “I thought a post would be enough” is not reasonable cause.
If you want the reasonable-cause defense, get advice in writing before you file, and give the preparer the real facts — including the personal days on the same trip.
Keep books the way a trades business does
The same habits we ask of a plumber apply here. Separate checking account. Receipts in one folder. A log with date, amount, where you were, and why it was work. Platform 1099s and payout reports saved with the return.
If content is a side activity, say so on the return and keep the deductions in proportion to the income. A $4,000 channel that deducts $18,000 of concerts will look like Sami, not like a business.
Bring the draft Schedule C to us before April. It is cheaper than answering the notice.
If you earn money from content in Alabama and want a second set of eyes on the deductions before you file, visit www.petersbandura.com or call Peters Bandura CPA.