Being an "influencer" is big ing has more than tripled since 2019, with an estimated worldwide market size of $24 billion ("Global Influencer Marketing Value 2016-2024," Statista (Feb. 6, 2024)). In the United States alone, brands are expected to spend $7.14 billion on influencer marketing in 2024 (*5 Creator Marketing Trends Set to Take Off In 2024," Forbes (Feb. 21, 2024)). In 2023, an estimated three-quarters of U.S. companies with more than 100 employees used influencers for marketing purposes ("Influencer Marketing in the U.s. — Statistics & Facts," Statista (Dec.
18, 2023)). Despite the growth of the influencer market, the IRS has yet to issue substantial guidance regarding the unique and uncertain tax issues influencers face. The following discussion is intended to be useful to CPA tax practitioners whose clients participate in this type of activity and thereby may receive potentially taxable income. Influencers create content and share it regularly through a variety of online channels to establish a relationship with their followers and share their expertise. They create online interest in brands and attempt to influence followers to try a particular product or service. Influencer marketing has a more authentic feel, similar to a satisfied customer recommending a brand to all of their closest friends, which increases the reach and credibility of the brand. For example, a popular fashion blogger might promote their latest favorite seasonal jacket on Instagram with a sponsored link that persuades followers to buy the product this article identifies categories of influencers; offers guidance for influencers and their advisers on income, deductions, and nontaxable items; and discusses other relevant tax considerations in the influencer industry.