How to file your taxes as an OnlyFans Creator

When it comes to running your OnlyFans business, there's a crucial aspect that might not be as glamorous but is equally essential—taxes.

Let's be honest—as an emerging creator, taxes probably aren't at the top of your mind. After all, you're busy creating, promoting, and selling your content.

But here's the deal: when you're earning money from your content, the government sees your OnlyFans endeavors as a job.

So knowing how to properly declare your OnlyFans income is pretty darn important.

But don't panic just yet! We've got your back. This guide aims to demystify the tax process and make what might seem like a daunting task straightforward.

So join us as we walk you through how to report your OnlyFans income and share some tips to help you stay on top of your finances.

Let's dive in!

Reporting OnlyFans income

Does the money I make from OnlyFans count as income?

Does making money from OnlyFans count as income? Absolutely. As with any other job, the government considers it income the moment you start earning money from it.

For most tax authorities, making money on OnlyFans is considered ‘self-employment.’

This means that they see you as someone who runs their own business, which comes with specific tax obligations, which vary depending on your location.

Do I need to file my taxes?

No matter where you live, your country’s tax agency will have specific filing requirements. These are guidelines about how much money you can earn before you have to report your income and start paying taxes. 

Once you earn a certain amount, you have to file taxes. This amount varies depending on whether you're single, married, or have kids.

Here are the tax thresholds for people under 65 in the USA:

• Single household :$13,850

• Head of household: $20,80

• Married couple filing together:

             - Both spouses under 65 years: $27,700

             - One spouse under 65 years: $29,200

      -  Married couple filing separately: $5

      - Qualifying surviving spouse*: $27,700

If your income exceeds these amounts, you need to file a U.S. tax return. For more information about the different thresholds in the US, check out the IRS guidelines here.

Still unsure if you need to file? The IRS has a helpful questionnaire on their website to guide you.

To find out the thresholds in your country, visit your tax agency's website. You can also check out this list of tax agencies worldwide.

Remember, these thresholds can change every year.

*Legally, you're considered a widow/widower.

Deadlines and penalties

Every country sets its tax deadlines, specific dates by which you must prepare and submit your tax return to your country's tax authorities.

Meeting these deadlines is crucial! Missing them can lead to penalties, which you definitely want to avoid. The best way to stay on track is to find these dates and mark them on your calendar.

In the United States, tax returns are due on April 15th each year for income earned in the previous year. If April 15th falls on a weekend or holiday, the deadline usually extends to the next business day. Still, it's wise to check the IRS website for any updates!

Here's a list of tax deadlines from around the world. To confirm the specific dates for your country, reach out to your national tax agency or visit their official website.

Calculating net income

Your gross income is all the money you make from subscriptions, tips, pay-per-view content, and any other way you make money through OnlyFans. 

Deductible expenses include equipment (like cameras, ring lights, tripods, and green screens), marketing efforts, internet bills, and even those cute costumes you bought.

Essentially, any service or item you buy for your OnlyFans work (your business) could be considered a deductible expense.

Your net income is what remains from your gross income after deducting all your business expenses.

To find out what your net earnings are, simply subtract your business expenses from your gross income.

A helpful tip is to keep a detailed record of all your work-related purchases in Excel throughout the year. Note down their costs and hold onto all your receipts. This will streamline your process come tax season.

If you're feeling unsure about any of this, it might be a good idea to chat with a tax advisor. They're the experts and can clear up any questions you have. Just make sure they're familiar with the ins and outs of content creation work.

Sales tax/VAT

Navigating sales tax or VAT (Value-Added Tax) is another thing you’ll have to consider when you declare your OnlyFans income. 

Sales tax in the US and Canada is a consumption tax imposed by state and local governments on the sale of goods and services. This usually means that a percentage of the sales price is then added to the final sales amount.

As an OnlyFans Creator, you may need to collect this sales tax/VAT if your country or locality requires it for digital services.

This means that any earnings you make—from tips to PPV purchases to paid requests and more—need to include taxes. 

In the EU, VAT is a similar concept to sales tax. This is where each stage of production and distribution is taxed.

If you're in a region that uses VAT, and your earnings exceed a certain threshold, you'll need to register for VAT.

You’ll then have to charge it to your customers, and regularly report and pay it to the tax authorities.

The rules for sales tax and VAT can be very complicated and vary depending on your location and the locations of your subscribers. When in doubt, talk to your local tax agency or consider consulting a professional tax accountant.

OnlyFans has created a useful list of the countries where Sales Tax/ GST/VAT or another local equivalent is required to be collected by OnlyFans including the tax rate that applies. 

Legal business structures

When you declare your OnlyFans income, you’ll also have to decide what your business structure is. 

For example, in the US, you can choose between registering as a Sole Proprietor or an  LLC (Limited Liability Company).

If you’re a Sole Proprietor, you're blending your business with your personal taxes. This keeps things pretty simple but can mean a higher personal liability. 

Forming an LLC will separate your personal assets from your business.

This limits your personal liability when it comes to the company but could result in more paperwork and more fees. 

There are tax advantages and disadvantages to both opions: An LLC might save you money in self-employment taxes and offer more credibility, but it might also mean more work than a Sole Proprietorship.

Most countries have their own versions of these business structures, but they all vary because of different legal and tax systems. 

Deductible expenses 

When it comes to reducing your tax bill, knowing what you can deduct is key. In this section, we'll break down the expenses you can claim to help maximize your savings come tax time.

Home office deductions

Believe it or not, if you work from home, your home could actually qualify as a tax deductible! 

There are a few different things that could qualify your home as a deductible. Here is an example from the US:

• You have to use your workspace for work regularly. Examples include a room, a corner of your apartment, or the garage. 

• The workspace you deduct should be the main spot for your OnlyFans work. 

When calculating your home office deduction in the US, there is a simplified and a regular method. 

• Simplified Method: Multiply the square footage of your home office (up to 300 square feet) by a prescribed rate (for 2023, this is $5/sqft), to get your deduction amount.

• Regular Method: Calculate the percentage of your home used for business (home office sqft divided by total home sqft) and apply that percentage to your home expenses.

Travel and meals

Travel and meals related to your OnlyFans work can also be counted as deductible expenses. 

Travel can include trips to and from photo shoots and networking events. Expenses that can be deducted in these cases include hotel costs, plane or train tickets, bus fares, etc.

Meals can include business dinners and meals when you’re on set. For these meals, you can deduct 50% of the costs on your taxes in the US.

But just be careful—trips and meal that don’t have a clear business connection do not qualify! So make sure to carefully track all of these expenses and reasons for why they should qualify as tax deductions.

Education and training

Another deductible expense can be education. This includes courses, workshops, and all other training you do related to your work as an OnlyFans Creator. In these cases, course materials also qualify as deductibles.

For example, if you take a course in photography for content creation, you can deduct the course fee, travel to and from the classes, and books and other supplies. 

But just like with travel and meal expenses, make sure that the education you do is related to your OnlyFans work.

It can’t be a course that will help you later qualify for another profession. That couples cooking class you did with your partner or nursing studies don’t qualify.

You can read more about work-related education here.

Tax planning strategies

Familiarize yourself with your local tax laws and stay on top of deadlines. Most of this information can be found on your local tax agency’s website.

It’s a good idea to use a tool to keep on top of your taxes. Here are some general online accounting tools that can help you keep track of your expenses and file your taxes :

• TurboTax: Made with freelancers, contractors, and small business owners in mind.

• QuickBooks: Online accounting for small businesses that’s available for many different countries. 

• Zoho Books: Online accounting tool for small businesses that’s availble in several languages.

While there are lots of resources available for self-employed individuals, it can be trickier to find ones that are specific to sex work. 

Luckily, there are some options. Daisy Does Taxes is an American site that sells specialized guides for doing taxes as a sex worker. You can also find OnlyFans tax calculators like this one from earnr. 

You can also consider asking other OnlyFans Creators for advice, either directly or on the subreddit r/OnlyFansAdvice.

When in doubt, getting Professional Help from a tax advisor is a good investment, especially for complex situations or if you're just plain unsure. There are a lot of them available online, such as H&R Block, JacksonHewitt and TaxAct.

Saving estimated taxes

Another important thing to keep in mind with your taxes is to put aside Estimated Taxes. 

As an OnlyFans Creator, you are considered to be a freelancer/self-employed.

This means that you don’t have a regular paycheck that comes in every month where your taxes have already been deducted. 

How much you will have to pay depends on where you live and your marital status, but a good rule of thumb is to put aside 20 to 25% of your gross income for your taxes. 

Conclusion

Navigating taxes as an OnlyFans Creator can seem overwhelming, but it doesn't have to be. Familiarizing yourself with your local tax laws is a good place to start.

Whether you’re making spicy content as a hobby or as your primary source of income, you need to stay informed about your tax obligations; otherwise, you might be in for an unpleasant surprise.

Always keep detailed records of everything you earn as well as your business expenses.

Set aside funds for estimated taxes, be smart with your deductibles and don't hesitate to seek professional advice if you are unsure about anything. 

If you’d like to read more, check out our article about OnlyFans Earnings for Beginners: Reality Check on Income Potential.