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Are you an OnlyFans creator generating income and feeling uncertain about your tax obligations? With the IRS paying close attention to online creators, understanding your tax responsibilities has never been more important. Here’s everything you need to know to stay compliant and financially savvy.
As an OnlyFans creator, you’re considered an independent contractor. If your earnings exceed $600 in a year, you'll receive Form 1099-NEC, which reports your non-employee compensation directly to the IRS. It's your responsibility to report this income on your tax return and pay both income and self-employment taxes, which together amount to approximately 15.3% of your net income.
One major advantage of being self-employed is the ability to lower your taxable income by claiming business-related deductions. To qualify, your expenses must be both ordinary (common in your industry) and necessary (directly linked to your OnlyFans activities).
Common deductible expenses for OnlyFans creators include:
• Cell phone bills
• Computer or laptop
• Camera and video equipment
• Editing software subscriptions
• Props, costumes, and accessories specifically used for content
• Home office costs (if you have a dedicated workspace)
• Internet and Wi-Fi services
• Vehicle mileage for business-related travel
• Travel expenses directly related to content creation (airfare, hotels, Airbnbs)
• Stage makeup and beauty supplies used exclusively for content
• Payments to contractors (photographers, video editors, assistants)
• Health insurance premiums (if self-insured)
• Platform fees and commissions charged by OnlyFans
• Professional development expenses (workshops, training relevant to your content)
The IRS explicitly prohibits deducting personal or cosmetic expenses, even if they indirectly contribute to your brand image. Non-deductible expenses include:
Personal grooming
Haircuts, tanning, hair removal
Cosmetic procedures
Botox, fillers, plastic surgery
General health and wellness expenses
Gym memberships, personal trainers, supplements
Personal care
Skincare products, nail care, dental work
Tattoos and piercings
If you expect to owe $1,000 or more in taxes annually, you must make quarterly estimated tax payments. The deadlines for these payments are typically April 15, June 15, September 15, and January 15 of the next year. Accurately projecting your income and deductions is key, and consulting a tax professional can simplify this process.
Forming a Limited Liability Company (LLC) can protect your personal assets if legal issues arise, especially if you consider your OnlyFans account a long-term business. The process of setting up an LLC is straightforward (more information here).
If your net profit (income minus expenses) exceeds $50,000 annually, consider electing S-Corp status. This could significantly lower your self-employment taxes by allowing you to pay yourself a reasonable salary and take additional profits as distributions.
Maintaining detailed records is essential for maximizing deductions and staying IRS-compliant. Always:
• Separate your personal and business finances
• Keep thorough records of income, expenses, receipts, and invoices
• Use bookkeeping software or apps to simplify record-keeping and reduces tress at tax time
✔ IRS scrutiny of OnlyFans creators is increasing; meticulous records and accurate expense reporting are critical.
✔ Deduct only expenses that clearly relate to your content creation.
✔ Stay updated on changing tax laws affecting creators.
If you’re still unsure about tax deductions or want personalized advice tailored to your OnlyFans business, schedule a consultation today!
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