Will OnlyFans Show on My Taxes?
Sharing exclusive content with subscribers became a worldwide business model for creative professionals thanks to the global expansion of OnlyFans. Yet, with fresh opportunities comes the tax responsibility of handling them correctly. If you are a newbie in content creation, you might be wondering “Will OnlyFans show on my taxes?”. In a nutshell, yes. We will be explaining how throughout this post.
Is OnlyFans Income Taxable?
The income generated via OnlyFans is taxable in accordance with the existing laws in the US. The IRS views such revenues as self-employment. So, they are subject to federal and most likely state taxes. It is important to mention that whether your income is $100 or $10,000 on an annual basis, you are required to report it. In addition, OnlyFans does not withhold taxes from your payments. Therefore, it is advisable to set aside financial resources specifically for tax payments.
Does OnlyFans Report Income?
OnlyFans issues Form 1099-NEC to creators generating over $600 in revenue in a tax year. This form is sent to both you and the IRS. If the amount received is less than $600, you are not likely to receive a 1099. However, all your income should still be reported in order to prevent penalty payments, interest fees or possible audits. Moreover, the IRS uses additional methods to locate unreported earnings.
OnlyFans Tax Forms
For OnlyFans professionals, the tax filing responsibilities are parallel to those of other self-employed individuals:
- Form 1040: It reports the total income alongside deductions.
- Schedule C: It calculates the profit or loss of business operations.
- Schedule SE: Self-employment taxes are computed.
- Form 1099-NEC: As explained, this form is sent by OnlyFans if a certain income threshold is met.
Tax Responsibilities of OnlyFans Creators
OnlyFans content creators are independent contractors. So, they manage their tax obligations on their own. The main tax responsibilities can be outlined as follows:
- Income Tracking: Maintaining detailed logs regarding all payments received from OnlyFans is critical even if the amount is less than $600.
- Estimated Tax Obligation: Quarterly estimated taxes are fundamental for content creators who receive significant revenues.
- Deducting Expenses: Expenses occurring related to core business activities can be claimed as detailed in the following section.
Tax Deductions for OnlyFans
The IRS allows self-employed individuals to claim legitimate business expenses. Within this context, OnlyFans content creators might use their business-related expenses as the most typical deductions presented below:
- Equipment and supplies: Cameras, lighting equipment and props that are used in the process.
- Internet and utilities: A portion reflecting the business-usage amount of the internet bill and utility costs, specifically for home-based professionals.
- Platform fees: OnlyFans commission fees charged for using the platform.
- Marketing and promotion: Expenses concerning online advertising activities.
- Office space: An arm’s length percentage of the rent or mortgage cost mirroring the professional activities conducted.
- Software and subscriptions: Editing tools and online services fees.
- Depreciation: Deduction for camera, computer and equipment usage.
Estimated Taxes
As it is explained above, OnlyFans has no employer status for content creators and the platform does not withhold taxes. As self-employed taxpayers, you should manage estimated tax payments on a quarterly basis. The quarterly deadlines are listed below:
Quarterly Deadlines
- April 15
- June 15
- September 15
- January 15 (of the following year)
Accurate Records are Important
Deal with the spark before it becomes a fire. Organizing the records for the revenues and expenses directly related to content creation is very important for full compliance with the IRS and state-level regulators.
- An accounting-focused software solution can be used for accuracy.
- All receipts and invoices in relation to core business purchases must be recorded.
- A dedicated bank account might be selected for OnlyFans income streams.
Common Myths About OnlyFans Taxation
- “Small earnings don’t count.” Even small amounts are taxable and should be reported.
- “The IRS won’t know.” Payment processors (Stripe) report transactions to the IRS, so non-reporting might result in penalties.
- “I don’t need a 1099 to file.” Content creators are required to report income regardless of whether they receive a 1099.
Professional Assistance Matter
We have three decades of experience, particularly with self-employed individuals. The massive expansion of OnlyFans broadened our client portfolio with many more content creators. Dimov Tax recognizes the challenges content creators should face and is ready to present our full-scope assistance for OnlyFans taxes.
Demonstrating professionalism with federal and state-level regulations is another critical aspect of collaborating with brands and expanding into other ventures. Whether you’re new to OnlyFans or an experienced creator, we’re here to make tax season less stressful.