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Your OnlyFans Taxes

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Your OnlyFans Taxes

OnlyFans has become a primary source of income for many online video content creators in the US. The platform has enabled video creators to earn money from their bedrooms with a minimum budget. Whether OnlyFans is your side gig or full-time job, you'll need to calculate your 1099 tax rate to figure out how much you owe the IRS
With more than 190 million registered users and 2.1 million creators who have received $12.5 billion in payments as of 2023, OnlyFans is one of the top 50 websites in the world in terms of daily visitor count. Some creators on the platform have gone from barely making ends meet to making more than $10,000 a month, according to a New York Times article. That means taxes and avoiding IRS tax penalties have become important considerations for many OnlyFans creators.
Key takeaways:
  • To take OnlyFans-related expenses as business deductions, OnlyFans should be your full-time business activity.
  • You can deduct props and video equipment from your taxable income
  • You should receive a 1099-NEC from OnlyFans if you have income from the platform.

Table of contents

Do I have to pay taxes on my OnlyFan income?...Read more

How do my OnlyFans taxes work?...Read more

What can I deduct as an OnlyFans creator? ...Read more

What you can't deduct from your OnlyFans income...Read more

How to pay my OnlyFans taxes...Read more

How to file my OnlyFans taxes...Read more

Do I have to pay taxes on my OnlyFan income?

Yes, when you earn income from OnlyFans, like tips, subscription money or any income from individual subscribers, you’ll need to report it to the IRS. On top of that, you'll also have to pay income tax on any income you earn from sponsorships from other brands. For example, if a makeup company hires you as an influencer to promote its products on your channel, the income you make from this endorsement will be taxed. In the eyes of the IRS, every OnlyFans creator is a self-employed individual, liable to pay income tax according to their tax bracket, as well as self-employed (SECA) taxes.

How do my OnlyFans taxes work?

As an OnlyFans creator, you’re responsible for paying taxes on your income from the platform. Anyone creating content for OnlyFans works independently on the platform and is not a W-2 employee but a self-employed individual. By US law, OnlyFans reports any payments made to you on the IRS Form 1099 and sends this form to the IRS. The 1099 form is an information-sharing form that the company is required to send to the IRS showing all payments that creators received. The type of 1099 form you'll receive if you make more than $400 a year is the 1099-NEC form for non-employee compensation. You should also receive a copy by mail, or you can download it from your OnlyFans user account dashboard. Your 1099 forms should arrive via mail in January. If you are still waiting for your 1099-NEC form after January, you can reach out to OnlyFans' customer service team to send you another copy. You can also track your income using your bank statements, but it always helps to have a 1099 form to compare your income with your bank statement for accuracy. If tracking your income on your own seems daunting, you can use an intelligent tax tool like FlyFin, where A.I. can automatically track your income and expenses, and show you expenses that you can use as tax deductions to lower your tax bill. As an OnlyFans creator, you'll have to pay 15.3% for your adjusted gross income (AGI) in self-employment taxes, or SECA (Self-employment and Care Act) taxes. So if your AGI is $20,000, you'll be paying $3,060 in SECA taxes. Your AGI is the final income after you've accounted for all the business expenses, student loan interest and qualifying IRS tax credits. You can also deduct qualifying business expenses from your total income, as long as OnlyFans is your main source of income. If the total income you made from OnlyFans was $64,000, and you’re eligible to deduct $14,000 in business expenses, you'll only pay tax based on your AGI of $40,000. These deductions can potentially put you in a tax bracket with a lower tax rate.

What can I deduct as an OnlyFans creator?

As a full-time OnlyFans entertainer and video creator, there are many things you can deduct as business expenses, as long as they help you in your day-to-day work.
Infographic entitled Possible OnlyFans Deductions showing five business expenses that can be written off from taxes.
If you use your phone for work calls and creating content, you can write off these expense. To do this, you’ll need to calculate the business use percentage of your phone. So, if you use your phone 40% of the time for work, you can deduct 40% of your phone bill. If you have a separate phone that you use solely for work, you can deduct 100% of those expenses. Doordash delivery drivers, for example, can have separate phones just to address delivery-related calls and messages. Business expenses, in the eyes of the IRS, should be:
  • Ordinary: familiar to your line of work, like software subscriptions for a freelance coder.
  • Necessary: required in your line of business, like a vehicle for a delivery driver.

What you can't deduct from your OnlyFans income

If an expense helps you do business, you can deduct it from your taxable income. For example, if you drive to a hiking spot to create content for your audience, you can deduct the fuel cost based on the miles you traveled. But you can't write off a meal you had on the way unless it was shared with a business partner, client or future client. Solo meals don’t make the cut.
Infographic entitled Non-Deductible OnlyFans Expenses showing expenses that are not tax-deductible for OnlyFans creators.

How to pay my OnlyFans taxes

All self-employed individuals are required to make a calculate their estimated tax based on their income. The minimum requirement to start paying quarterly estimated taxes is when you think your total tax liability over $1,000 for the tax year. You'll need to pay 90% or more of one quarter of $1,000 ($250) by each deadline in order to avoid the IRS tax penalties.
Infographic entitled 2023 Quarterly Tax Due Dates showing the 2023 estimated quarterly tax payment deadlines for self-employed individuals.

How to file my OnlyFans taxes

If you are working as a full-time OnlyFans video creator, you have to fill out Schedule C on your 1040 Form to declare your profits and losses because the IRS treats OnlyFans creators as sole proprietors, which are a single-person business entity. You can use your 1099-NEC from OnlyFans to accurately calculate the tax you owe on Schedule C. If you somehow lost your OnlyFans 1099 form, you can download a copy directly from your OnlyFans' website account. Then you can either manually fill in Schedule C or use FlyFin to help you track all your expenses and create a tax report for you. You also get 24/7 expert CPA advice in the app about 1099 taxes to ensure 100% accurate tax filing. Once you’ve calculated your profit and loss, the excess income will be used to calculate your income and self-employment taxes. You have to mention the extra income after your Schedule C calculation on the Form Schedule SE to find your self-employment income taxes.

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