Understanding Your OnlyFans Taxes

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 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 tax brackets, as well as self-employed taxes.

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 an 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, which A.I. to automatically track your income and expenses. 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 than the $41,775 to $89,075 bracket.

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.

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.

All self-employed individuals are required to make a quarterly tax payment four times a year based on their income.. The minimum requirement to start paying quarterly estimated taxes is when you think your total tax liability will be $1,000 or more for the 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.

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 expert CPA advice in the app 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.