OnlyFans Taxes – Everything You Must Know (Forms Too!)

On this form, you’ll report your gross business income (same as reported on your 1099) along with any business-related expenses.

Your net income, representing your profit, will be the remaining amount on which income tax and self-employment tax are assessed.

Next, we will delve into the various tax deductions available for OnlyFans creators to help reduce your tax liabilities.

1040 Schedule SE

After determining your net income on Schedule C, the following step is to complete Schedule SE.

In this schedule, you will compute the self-employment tax owed based on your net income.

What tax deductions can OnlyFans creators avail themselves of?

Let’s discuss tax deductions – the greater the business expenditures you can write off, the less your overall tax payment.

However, an important caveat exists.

Tax write-offs on OnlyFans are exclusively for business owners, not hobbyists, due to the subjective nature of that distinction.

The IRS classifies you as a business owner if your intention is to profit from your OnlyFans activities.

For a clearer understanding, check out this IRS article.

Even if you’re earning through OnlyFans as a hobby, it doesn’t exempt you from taxation. While you may avoid self-employment tax, you will still be responsible for income tax.

Returning to the main topic: What are some possible business expenses that you might deduct?

• Equipment used or rented for shooting, recording, editing, and processing (Cameras, smartphones, computers, sound equipment, props, etc.). These are vital for generating content on OnlyFans.
• Wi-Fi and data expenses. Given the online nature of your OnlyFans business, internet access is crucial for its operation. For instance, if you dedicate 30% of your time working on OnlyFans, consider claiming 30% of your internet expenses as a business deduction. Additionally, travel costs incurred for pursuing high-value business connections or shooting content at specific client-requested locations may also be deductible. Furthermore, fees from the OnlyFans platform and transaction fees can also be claimed. Concerning clothing, you could write off custom outfits created at subscriber requests, but everyday clothing typically wouldn’t qualify.

If you display costumes for cosplays on your OnlyFans, those costs might also be deductible. Promotional tools, such as Social Rise, assist creators in acquiring subscribers on Reddit and can be written off as well. Signing up is straightforward and free, needing no credit card, enabling fast posting with Reddit access.

Expenses related to renting a space used solely for creating OnlyFans content could be partially deductible. Make sure to separate makeup and beauty products utilized exclusively for your OnlyFans work from standard supplies to maximize potential tax write-offs. If you engage professionals like photographers or video editors, their fees may count as deductible business expenses.

Remember that, according to IRS guidelines, expenses need to be ordinary and necessary for your business to qualify for deductions. Before submitting your Schedule C, check the available write-offs for your situation. Keeping organized records of all bills and receipts related to OnlyFans will help support your tax deductions. It’s wise to set up a separate bank account to track the income and expenses from OnlyFans, helping you to distinguish business-related transactions.

When it comes to taxes on your OnlyFans earnings, keep in mind that in the U.S., if you expect to owe more than $1,000 in taxes for the year, quarter tax payments may be necessary. Not paying these quarterly taxes could lead to interest and penalties. Paying smaller amounts quarterly might be easier than handling a large sum all at once. The annual amount due isn’t usually overwhelming. Additionally, the IRS allows a 10% margin of error in estimating tax liabilities, ensuring that minor discrepancies won’t lead to problems. The deadlines for quarterly payments are:

• April 15th
• June 15th
• September 15th
• January 15th (next year)

To estimate your taxes, you must use the Form 1040 ES. Payments can be made by mailing the form with a check for the amount owed to your designated mailing address or by choosing to pay online.

## FAQs about OnlyFans Taxes

### Is an OnlyFans W2 form necessary?
If you’re not an employee of OnlyFans, you will not receive a W-2 form from them. As a content creator on the platform, you are required to fill out a W-9 OnlyFans tax form prior to withdrawing your earnings.

### How much tax is applicable on OnlyFans income?
Income earned on OnlyFans is subject to self-employment tax and income tax. In the U.S., the self-employment tax encompasses Social Security tax (12.4%) and Medicare tax (2.9%), totaling 15.3%. Income tax rates differ based on your total earnings.

### What is the appearance of the OnlyFans tax form?
The tax document issued by OnlyFans is a standard 1099 NEC (Nonemployee Compensation) form. You can find a copy of this form and others required for filing on the IRS website.

### Does OnlyFans automatically withhold taxes from my earnings?
Unlike traditional jobs, where taxes are deducted automatically, OnlyFans does not withhold taxes. As an independent contractor, you must pay taxes on your earnings after OnlyFans takes its 20% commission.

### Will OnlyFans earnings be reported on my taxes?
If your earnings from OnlyFans surpass $600 in a year, a 1099 NEC will be issued. This document comes from “Fenix International Limited,” the parent company of OnlyFans, making the link less apparent.

Should someone else prepare your taxes and you worry about their awareness, you might consider managing your taxes personally.

## Conclusion: Steps to File Taxes for OnlyFans

As a creator on OnlyFans, your tax responsibilities are essential and must not be overlooked. If you opt to handle your taxes independently, you now have a solid grasp of the procedure. In summary:

– You are the sole operator of your business, rendering you self-employed.
– Your OnlyFans income is subject to both income tax and self-employment tax.
– Completing the OnlyFans W9 form is essential before you withdraw your earnings.
– In January, you’ll receive the OnlyFans 1099 form via both mail and digital means on the platform.
– It’s necessary to file a Schedule C and Schedule SE alongside your 1040 income tax return.
– You may write off business-related expenses to lower taxable income.
– If you believe you will owe over $1000 in OnlyFans taxes, consider making quarterly payments. The countries outlined include Tanzania, Kenya, the United States, the United Kingdom, Malaysia, the U.S., South Africa, New Zealand, Turkey, and the United Arab Emirates.

Afghanistan, Albania, Algeria, American Samoa, Andorra, Angola, Anguilla, Antarctica, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, and Azerbaijan.

Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize, Benin, Bermuda, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Bouvet Island, Brazil, British Indian Ocean Territory, Brunei Darussalam, Bulgaria, Burkina Faso, and Burundi.

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Denmark, Djibouti, Dominica, Dominican Republic, East Timor, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Falkland Islands (Malvinas), Faroe Islands, Fiji, Finland, France, Metropolitan, French Guiana, French Polynesia, French Southern Territories.

Gabon, Gambia, Georgia, Germany, Ghana, Gibraltar, Greece, Greenland, Grenada, Guadeloupe, Guam, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Heard and McDonald Islands, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, and Italy.

Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kiribati, North Korea, South Korea, Kuwait, Kyrgyzstan, Laos, Latvia, Lebanon, Lesotho, Liberia, Libya, Liechtenstein, Lithuania, and Luxembourg.

Macau, Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Martinique, Mauritania, Mauritius, Mayotte, Mexico, Micronesia, Moldova, Monaco, Mongolia, Montserrat, Morocco, Mozambique, and Myanmar.

Namibia, Nauru, Nepal, Netherlands, Netherlands Antilles, New Caledonia, New Zealand (NZ), Nicaragua, Niger, Nigeria, Niue, Norfolk Island, Northern Mariana Islands, and Norway.

Oman, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Pitcairn, Poland, Portugal, Puerto Rico, Qatar, Reunion, Romania, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and The Grenadines, Samoa, San Marino, Sao Tome and Principe.

Saudi Arabia, Senegal, Serbia, Seychelles, Sierra Leone, Singapore, Slovakia, Slovenia, Solomon Islands, Somalia, South Africa, South Georgia and South Sandwich Islands, Spain, Sri Lanka, St. Helena, St. Pierre and Miquelon, Sudan, Suriname, Svalbard and Jan Mayen Islands, Swaziland, Sweden, Switzerland, and Syria.

Taiwan, Tajikistan, Tanzania, Thailand, Togo, Tokelau, Tonga, Trinidad and Tobago, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, Tuvalu, Uganda, Ukraine, United Arab Emirates (UAE), UK (United Kingdom), USA (United States of America, U.S.), US Minor Outlying Islands.

Uruguay, Uzbekistan, Vanuatu, Vatican City State (Holy See), Venezuela, Vietnam, Virgin Islands (British), Virgin Islands (US), Wallis and Futuna Islands, Western Sahara, Yemen, Yugoslavia, Zaire, Zambia, and Zimbabwe.

OnlyFans Taxes – Everything You Must Know (Forms Too!)