Understanding the complexities of tax filing is essential for anyone working as a freelancer on OnlyFans, regardless of whether they are a full-time or part-time creative. All income received from websites such as OnlyFans is deemed taxable by the IRS, and noncompliance may result in fines. This post will explore the distinctions between full-time and part-time artists’ tax responsibilities, the effects of having numerous sources of income on your taxes, and how to modify withholding or quarterly taxes if OnlyFans is your side business, including tracking and documenting business expenses.

Table of contents

Understanding OnlyFans Income and Taxes

What is OnlyFans and how does it work?

OnlyFans is a subscription-based online platform that allows content creators to monetize their content and build relationships with their fans. The platform enables users to publish content behind a paywall, requiring subscribers to pay before viewing. Fans can also tip creators to influence content based on their messages or “tips.” OnlyFans is used by content creators and artists to monetize their content, and it has become a popular platform for public figures, fitness trainers, models, and others who want to monetize their work.

Taxable Income from OnlyFans

Income earned through OnlyFans is considered taxable income by the IRS. This includes money earned through subscriptions, tips, donations, PPV (pay-per-view) content, and other income avenues the platform provides. As a self-employed individual, you are required to pay taxes on your total earnings for the year. The amount of taxes owed depends on the total income earned after deducting tax deductions.

Part-Time and Full-Time Tax Differences Content Creators on OnlyFans

Creators Who Work Part-Time

It’s unlikely that your main source of revenue as a part-time OnlyFans creator comes from the site. Even if you are a part-time creator, you are still required to pay income tax on your earnings from OnlyFans. Any income received from OnlyFans is still taxable, though. Here are some important things to think about:

All money earned from OnlyFans must be reported, even if you do not receive a 1099 form. Subscriptions, gratuities, and other payments fall under this category.Learn more about how to report self-employment income without a 1099.

Self-Employment Taxes: You will pay a flat rate of 15.3% for both income tax and self-employment tax if you work for yourself. This includes the 2.9% Medicare tax and the 12.4% social security tax.
Deductions: You should maintain thorough records of your earnings and expenses, even though you cannot deduct expenses associated with your OnlyFans income if it is regarded as a hobby. This can be useful if you ever decide to handle your OnlyFans account like a company.Find out more about OnlyFans taxes and deductions.

Artists Working Full-Time

Full-time However, the platform is a major source of revenue for OnlyFans artists. Full-time creators must also pay self-employment tax on their net income from OnlyFans. Here are some important things to think about:

Company Classification: You can use a Schedule C form to record your OnlyFans account if you classify it as a company. This enables you to write off costs associated with your firm, like software, equipment, and advertising.
Tax Forms: OnlyFans frequently sends full-time creators a 1099 NEC form that breaks down their earnings. Additionally, if they take payments via PayPal or Venmo, they can get a1099-K.
Quarterly Payments: You might be required to make quarterly anticipated tax payments if you anticipate owing $1,000 or more in taxes for the year. By doing this, you may be sure you’re fulfilling your tax requirements and prevent penalties.Learn how to avoid tax penalties.

The Effects of Various Income Sources on Your Taxable Income

On OnlyFans, a large number of independent contractors also work at other jobs or companies. Accurate reporting and lowering income taxes depend on your ability to comprehend how different sources of income affect your taxes.

Merging Different Revenue Sources

It's crucial to add up all of your earnings when you have several sources of income in order to calculate your total taxable income. This comprises earnings from:

OnlyFans: Tips, subscriptions, and other payments.
Other Gigs: Earnings from consulting, freelancing, or other self-employment ventures.
Dividends from investments, interest from savings accounts, or rental income are examples of passive income.

Handling Several Sources of Income

To successfully manage several sources of income:

Maintain Accurate Records: Keep thorough records of all your income and outlays. You can claim deductions and record your income more accurately if you do this.
Make Use of Tax Software: Use tax software such as FlyFin to automate tax filing and guarantee accuracy.
Speak with a Tax Expert: See a tax expert if you're unclear about how to manage several sources of income. They may offer you individualized advice and assist you in navigating intricate tax regulations.

Modifying Quarterly Self Employment Tax or Withholding If OnlyFans Is Your Side Business

You might not have to pay quarterly estimated taxes if OnlyFans is your side gig. To prevent a hefty tax burden at the end of the year, it's wise to set aside a certain amount of money each month for taxes.

Setting Money Aside

Advantages and Drawbacks of Working as a Full-Time Content Creator from a Tax Angle

From a tax standpoint, there are advantages and disadvantages to working as a full-time content provider on OnlyFans.

Advantages

As a full-time creator, you can lower your taxable income by deducting business-related expenses on your Schedule C form.

Business Classification: By treating your OnlyFans account as a business, you can benefit from tax write-offs, which can lower your tax obligation considerably.

Professional Status: Working as a creative full-time may open up more options for credits and deductions, like equipment expenses or home office deductions.

Drawbacks

Disparities Between Part-Time and Full-Time Creators' Reporting of OnlyFans Income

There are considerable differences between part-time and full-time artists in how they record their earnings and expenses.

Creators Who Work Part-Time

Artists Working Full-Time

Self-Employment Taxes for OnlyFans Creators

What is self-employment tax and how does it work?

Self-employment tax is a tax that self-employed individuals must pay on their net earnings from self-employment. As an OnlyFans creator, you are considered self-employed and must pay self-employment taxes on your income. Self-employment tax consists of Social Security tax (12.4%) and Medicare tax (2.9%), totaling 15.3%. This tax is used to fund Social Security and Medicare. You will need to report your self-employment tax on Schedule SE (Form 1040) and pay it quarterly if you expect to owe more than $1,000 in taxes for the year.

Optimizing Full-Time Creators' Deductions

For full-time creators to lower their taxable income and limit their tax obligation, maximizing deductions is essential.

Typical Deductions

Monitoring Business Expenses

Wrap-up

Tax filing for OnlyFans creators might be complicated, but you can stay in compliance and lower your tax bill by managing numerous revenue streams, maximizing deductions, and knowing the distinctions between part-time and full-time creators. It is essential to use tax software, maintain proper records, and get advice from a tax expert when necessary, regardless of whether you are a full-time or part-time producer. You may confidently navigate the world of OnlyFans taxes and concentrate on what really matters—producing content for your fans—by using these pointers.

Extra Sources

IRS Guidelines: The IRS offers comprehensive instructions on how to file taxes as a self-employed person and on self-employment taxes. To learn more, go to the IRS website.
Tax Software: To automate bookkeeping processes and guarantee accuracy, use tax software such as FlyFin.
For individualized advice on handling your taxes as an OnlyFans creator, speak with a tax specialist.

You may maximize the potential of your OnlyFans account and keep thriving in the always changing field of content creation by remaining knowledgeable and according to tax laws.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.