When to declare income to the IRD

So, you’ve been uploading videos in your spare time and have hit the monetisation mark, with people now sending you gifts for advertising. There’s a good chance you need to inform the Inland Revenue Department (IRD).

The IRD considers various factors to determine if an income has been earned. Income typically includes three main aspects:

  1. It’s something received.
  2. It involves a degree of regularity or recurrence.
  3. Its classification as income depends on its quality in the hands of the recipient.

Let’s break down these factors:

If you’re earning over $200 from an activity, the IRD generally sees it as an income source. This threshold adjusts to $2,340 if you’re under 18 and still at school.

Next, they’ll assess the regularity of payments. Even if initially sporadic, if you’re consistently earning from multiple videos, it’s likely to be considered regular income.

The IRD also examines intent. Did you have any intention to make money from your videos? Factors like the time invested, the frequency of uploads, and the decision to monetize all contribute to this assessment.

If any of this resonates with your situation, it’s worth considering reaching out to us. We can review your circumstances and provide guidance on whether you should be declaring income from your content creation activities.

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