Taxes for OnlyFans Creators: What You Need to Know

If you’re an OnlyFans creator, you’re not just a content superstar, you’re also a business owner. Earning income through OnlyFans is exciting, but when tax season rolls around, handling taxes for OnlyFans creators can get a little overwhelming.

Don’t worry, this guide breaks down the essentials of taxes for OnlyFans creators so you can stay on top of your finances with confidence and ease.

Your Income Is Taxable 

Let’s get this out of the way: any income you make from OnlyFans is taxable. Whether it’s payments from your subscribers, tips, or any other form of payment on OnlyFans, the IRS considers it self-employment income. This means you’ll need to report all your earnings, even if you don’t receive a 1099 form from OnlyFans. 

OnlyFans typically issue 1099 forms to creators who earn $600 or more in a calendar year. 1099’s are also sent to the IRS, so you need to make sure you report that income on your tax return.

You’re Considered Self-Employed

As an OnlyFans creator, you’re classified as self-employed. This means you’re your own boss (yay!) but also responsible for paying self-employment taxes (gulp). Self-employment taxes cover Social Security and Medicare and are currently set at 15.3% of your net earnings. This is in addition to federal and state income taxes. 

Schedule C (Profit or Loss from Business) is a subsection of the Form 1040. When you file your taxes, you’ll need to complete a Schedule C along with your regular 1040 tax return. On the bright side, being self-employed allows you to take advantage of deductions to lower your taxable income.

You Need to Track Everything — Year-Round 

The best way to stay on top of your finances is to keep meticulous records of all your earnings and expenses. Document every payment you receive and every cost you incur related to your work on OnlyFans. Tools like QuickBooks Online or even a simple spreadsheet can help you stay organized throughout the year. (Download our handy tracking worksheet if you don’t already have a tool you love.)

One of the perks of being self-employed is that you can deduct business-related expenses. Here are some common deductions for OnlyFans creators:

• Equipment: Cameras, lighting, microphones, and so on.
• Software and Subscriptions: Editing software, cloud storage, or other digital tools.
• Home Office: If you have a dedicated workspace for creating content, you may be able to deduct a portion of your rent, utilities, and internet.
• Costumes and Props: Outfits, accessories, or props used exclusively for your content.
• Travel: If you travel for shoots or events, expenses like airfare, hotel stays, and meals may be deductible. (You may only be able to deduct a portion of these expenses, so we recommend working with a professional who can help you figure out the sometimes complicated rules for travel and meals. And, yes, that is something we can provide advice about, in case you were wondering when we might plug our services.)
• Marketing: Ads, promotions, or any other costs associated with growing your audience.

You Should Save for Taxes

Because OnlyFans doesn’t withhold taxes from your payments, it’s important to set aside money for taxes. A good rule of thumb is to save 25-30% of your gross income to cover federal, state, and self-employment taxes.

If you expect to owe more than $1,000 in taxes for the year, you should make quarterly estimated tax payments. These payments are due in April, June, September, and January. Missing these deadlines can result in penalties, so setting reminders is a smart move.

You Also Need to Pay State Taxes 

Don’t forget about state taxes! Depending on where you live, you may need to file state income taxes in addition to federal taxes. Some states also have specific rules for self-employed individuals, so be sure to research your local requirements. 

You May Also Need to Think about Sales Taxes

If you sell physical merchandise in addition to your OnlyFans content, you may need to collect and remit sales tax. Sales tax laws vary by state, so check to see if this applies to you. Platforms like Shopify or Etsy often have tools to help you handle sales tax compliance.

You Can’t Stop After You Pay Your Taxes

The key to stress-free taxes is staying organized year-round. Keep a separate bank account for your OnlyFans income and expenses and update your records regularly. Making the small choice to use your business bank account instead of your personal account can save hours of headache at the end of the year!

The Bottom Line

Being an OnlyFans creator is an exciting way to earn a living, but it comes with its share of responsibilities, including taxes for OnlyFans creators. By understanding your obligations, keeping good records, and seeking professional help when necessary, you can tackle taxes like a pro. If you don’t want to deal with taxes on your own, book a call with us and we’ll make sure you are saving as much as possible!