Do you have to pay taxes as an OnlyFans Creator?

Taxes—it’s not everyone’s favorite topic, but it’s certainly an important one.

Making good money on OnlyFans isn’t just possible—it’s a reality for many Creators. If you’re active on the platform, understanding your tax obligations from the get-go can save you headaches down the road. 

While it might require some dedication at first, you’ll soon realize that knowing your way around taxes, filing timelines and business expenses pays off.

We get it, it all looks pretty complicated at first, but we’ll try to give you all the information you need in a way that’s easy to understand. 

In this article, you’ll learn why you have to pay taxes on OnlyFans, how you should file your taxes, and what deductions you can claim.

Tax obligations as an OnlyFans Creator

As an OnlyFans Creator, you’re considered to be self-employed, which means you’re responsible for handling your own taxes.

So, do you have to pay taxes on your OnlyFans income? Yes, you do. This includes income from tips, paid content, and subscription packages. OnlyFans deducts 20% from all your earnings, but it doesn’t have anything to do with your taxes.
This amount only includes OnlyFans service fees.

At a regular job, taxes are automatically taken out of your paycheck and employees see all deductions and expenses in their W-2 form. When you’re self-employed, on the other hand, you need to set aside money for taxes yourself.

If you need help organizing your OnlyFans business or boosting your growth, Infloww offers tools to assist Creators in their daily tasks. Get in touch to know more!

Let’s go into detail about how much tax you have to pay on your OnlyFans income.

Income tax vs. self-employment tax

When it comes to taxes, there are two main things to consider: income tax and self-employment tax. 

Income tax is pretty straightforward—it’s a percentage of your earnings that you pay to the government. Self-employment tax is a bit trickier.

Self-employment tax, also known as SECA (Self-Employment Contributions Act) tax, is calculated at a rate of 15.3% of your adjusted gross income (AGI). 

Your AGI is determined after deducting business expenses and any qualifying IRS tax credits. This means you’re not paying taxes on your gross earnings but rather on your net income after accounting for necessary expenses related to your OnlyFans business.
That makes your taxable income lower!

To give you an idea: if your total income from OnlyFans is $57,000, but you have $12,000 in business expenses, your AGI is reduced to $45,000. This means you’ll only pay taxes based on $45,000.

Last but not least, the US has specific tax thresholds: if you earn less than $12,950 in a year, you might not owe any income tax. Pretty neat, right?

How to report your income

As an OnlyFans Creator, you’re responsible for self-assessment tax returns, which means you’re in charge of reporting your income and paying the appropriate taxes. 

By US law, if you earn more than $400 a year from self-employment, you’ll need to report your income using a 1099-NEC form. 

OnlyFans will send you the 1099-NEC form, which will include all your earnings made on the platform in the previous year. 

Expect your 1099-NEC form to arrive via mail in January. You can also download the form from your OnlyFans account.

While it’s possible to track your income using bank statements, using the 1099-NEC form is a much simpler and more accurate approach.

Filing and payment

Filing and paying taxes may sound daunting, but it’s totally manageable with a bit of guidance. 

Here’s a recap of the tax documents you may need for your tax return as an OnlyFans Creator:

• Schedule C (Form 1040): This form is used to report income or loss from a sole proprietorship or single-member LLC. As an OnlyFans Creator, you’re considered self-employed, so you’ll use this form to report your earnings and deductible business expenses.

• Schedule SE (Form 1040): This form is used to calculate the self-employment tax you owe as a self-employed individual. It’s based on your net earnings from self-employment, which you’ll find on your Schedule C.

• Form 1099-NEC: OnlyFans will provide this form to show how much money you’ve earned on the platform in the previous year.

Don’t forget about tax deadlines! In the US, taxes typically have to be filed by mid-April each year. Remember to mark these dates on your calendar so you can submit your tax return on time to avoid penalties and interest charges.

Quarterly tax payments

As a self-employed Creator, you may be required to make quarterly estimated tax payments throughout the year. These payments are based on your expected income for the year and are intended to cover your tax liability. 

Here’s how it works: if you owe more than $1,000 in taxes for the year, you have to pay it quarterly. 

The deadlines for these payments are usually in April, June, September, and January. Make sure you keep tabs on these payments to avoid underpayment penalties.

Deductions and write-offs

Finally, some good news: as an OnlyFans Creator, the business expenses you incur for your day-to-day activities will lower your taxable income. 

These can include:

• Business expenses: These are things you need to run your OnlyFans gig, like equipment (cameras, computers), software (editing tools), and even money spent on promoting your content (sponsored posts or ads). If it’s necessary for your business, you can deduct it.

• Home office expenses: If you use a part of your home exclusively for your OnlyFans work, you might be able to deduct some of your housing costs, like rent or utilities. Just make sure it’s a dedicated workspace, and you can claim it.

When it comes to deductions, there’s a difference between ordinary and necessary expenses. Ordinary means something is common in your line of work, like camera equipment for a photographer. 

Necessary means it’s helpful and appropriate for your business, even if it’s not strictly required, like workout clothes for a fitness content creator.

Professional help to file your tax

If you’ve come this far, you’ve hopefully become more familiar with how taxes work for OnlyFans Creators. But if you feel like you need some extra support, there are professionals who can help you avoid costly mistakes.

Here’s who you can turn to:

• Accountants: Accountants can help you understand the complexities of tax law, maximize your deductions, and ensure your tax return is filed correctly. They can also offer advice on managing your finances and planning for future tax obligations. Creator Alanah Cole suggests you find an accountant who’s specialized in OnlyFans taxes.

• Tax attorneys: If your tax situation is particularly complex or you’re facing tax-related legal issues, a tax attorney can provide expert guidance and representation. They specialize in tax law and can help you resolve disputes with the IRS or deal with audits.

• Specialized tax software: Don’t want to shell out for professional help? Not a problem. You can find many tax software options specifically designed for self-employed individuals. These programs walk you through tax filing step by step, help you identify potential deductions, and make sure your return is filed accurately.

Filing taxes as an OnlyFans Creator

If you’re making money on OnlyFans, chances are you need to pay taxes on what you’ve earned. While the process may seem daunting at first, you’ll quickly get familiar with all the ins and outs of filing a tax return as a self-employed Creator.

Make sure you learn which documents you need, and don’t miss the key deadlines. Tax professionals can make your life easier and give you peace of mind if you need support.

Looking for more tax-related guidance? Here’s how to report your OnlyFans income the right way!