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

Curious about tax responsibilities related to OnlyFans earnings?

Generally, the answer is yes. Income generated from OnlyFans is liable for income tax and self-employment tax. This encompasses earnings from subscriptions, tips, donations, PPV content, and various other revenue streams on the platform.

Just like regular employment income, OnlyFans earnings are taxed, with higher income levels resulting in increased tax payments. Furthermore, part of your income is subject to self-employment tax.

Different countries have specific income thresholds that indicate when tax payments need to start.

In several jurisdictions, it is compulsory to report your earnings, even if you do not meet the income threshold.

This article is intended to clarify your tax obligations.

Grasping Self-employment Tax

When it comes to taxes on OnlyFans, it’s crucial to remember that you are not classified as an employee; rather, you are a business owner.

You function as an independent contractor, which categorizes you as self-employed, thus requiring payment of self-employment tax in addition to income tax.

In the U.S., self-employment tax consists of Social Security (12.4%) and Medicare tax (2.9%), bringing the total to 15.3%, similar to FICA deductions.

This tax is the method through which business owners and contractors fulfill FICA tax obligations.

Essential Tax Forms

Here are the key tax forms you’ll need for addressing your OnlyFans tax responsibilities:

W-9 – Taxpayer Identification Document and Certification Request

While OnlyFans will require your tax details, they do not automatically withhold taxes. They provide your total earnings (after deducting their 20% fee) and utilize your tax information for IRS reporting.

You will be asked to fill out a W-9 form during your first withdrawal of earnings on OnlyFans.

 Tax Obligations on OnlyFans – The W9 Tax Form

How to Complete W9 for OnlyFans

Completing the W9 might appear overwhelming, especially for those unfamiliar with taxes. Here’s a straightforward guide:

• Line 1: Your complete name.
• Line 2: Skip unless you possess a DBA or LLC.
• Line 3: Choose “Individual/sole proprietor or single-member LLC.”
• Line 4: Leave this section blank.
• Lines 5 and 6: Your mailing address.
• Line 7: Keep this section empty.
• Part 1: Input your SSN.
• Part 2: Sign and date.

It is essential to submit the OnlyFans W9 form to withdraw your earnings.

If you’re outside the U.S., you should fill out a W8-BEN form instead, which declares your non-residency and the exemption from IRS taxes.

1099 NEC – Nonemployee Compensation

Unlike the W-9 form, the 1099 NEC is not a
To accurately complete this form, you will need

To finalize a document that will be sent to you by OnlyFans at the address indicated in your W-9.

Your gross business income is determined by the actual amount of money you’ve earned on OnlyFans over the year.

If you are a U.S. resident and have made more than $600 during the year, OnlyFans will issue you a 1099 NEC.

• In the case that your earnings are below $600, OnlyFans will not send you a 1099 form. Nonetheless, you are still obligated to report your earnings to the IRS on your annual income tax return.
• Non-U.S. residents will not receive an OnlyFans 1099 form. It’s important to keep your documents, invoices, and receipts well-organized to avoid issues during tax season.

When does OnlyFans send out tax forms?

If eligible, you should expect to receive your 1099 NEC by mail no later than January 31st. Moreover, a digital version will also be accessible on OnlyFans.

1040 Schedule C

If you own a small business, you are required to file a Schedule C alongside your regular 1040 tax return.

On this form, you’ll need to detail your gross business income (as shown on your 1099) along with any business expenses you have incurred.

Your remaining income, which is your net income, is the profit upon which you will have to pay income tax and self-employment tax.

Next, we’ll look into various tax write-offs available for OnlyFans creators to help reduce your tax burden.

1040 Schedule SE

After calculating your net income on Schedule C, the next step is to complete Schedule SE.

 Filing taxes for OnlyFans – You’ll figure your OnlyFans tax on Schedule SE

In this document, you will determine the self-employment tax due based on your net income.

What tax write-offs can OnlyFans creators take advantage of?

Let’s discuss tax write-offs – the more you can deduct as business expenses, the lesser your overall tax bill.

However, it’s critical to note an important point.

Tax write-offs on OnlyFans are applicable only to business owners and not hobbyists, as the difference between these two categories can be subjective.

The IRS considers someone a business owner if they are aiming to earn a profit from their activities on OnlyFans.

For additional clarity, check this IRS article.

Trying to earn through OnlyFans as a hobby doesn’t exempt you from taxes. Even if you avoid self-employment tax, you will still be liable for income tax.

Returning to our topic: What potential business expenses could you consider deducting?

• Equipment utilized or rented for shooting, recording, editing, and processing (Cameras, smartphones, computers, sound equipment, props, etc.). These items are vital for producing content on OnlyFans.
• Cost of Wi-Fi and data usage. Given the online aspect of your OnlyFans business, internet connectivity is essential for operations. For example, if you dedicate 30% of your working hours to OnlyFans, you might consider writing off 30% of your internet bills as a business expense.

You can also deduct expenses related to travel for closing high-value business deals or shooting content at specific client-requested locations. Additionally, OnlyFans platform and transaction fees may qualify as deductions. With respect to clothing, custom attire made for subscriber requests could be written off, but regular clothing typically would not. Expenses for costumes used in cosplay on your OnlyFans could also potentially be deductible. Promotion tools like Social Rise, which helps creators gain subscribers on Reddit, can be written off as well. The sign-up process is straightforward and free, with no credit card required, allowing for quick posting thanks to Reddit access.

Rent for a location dedicated solely for shooting OnlyFans content may be partially deductible. It’s important to keep makeup and beauty supplies used exclusively for your OnlyFans business separate from personal supplies for possible tax deductions. If you hire professionals, such as photographers or video editors, their fees might also be valid business expense deductions.

For expenses to qualify as deductible, they need to be ordinary and necessary for your business in line with IRS regulations. Before submitting your Schedule C, take a moment to review potential write-offs available to you. Keeping organized records of your OnlyFans-related bills and receipts is essential for substantiating your tax deductions. Opening a separate bank account for tracking OnlyFans income and expenses is advisable to keep business transactions distinct.

Regarding your OnlyFans income taxes, be aware that in the U.S., quarterly tax payments may be required if you expect to owe more than $1,000 in taxes each year. Not paying your quarterly taxes could mean incurring interest and penalties. Smaller quarterly payments may be easier to manage compared to a larger amount due at once. The total owed at year-end may not be overwhelming. Additionally, the IRS provides a 10% margin for errors in estimating what you owe, which means you won’t face difficulties for minor discrepancies. The deadlines for quarterly payments are:

• April 15th
• June 15th
• September 15th
• January 15th (the following year)

To estimate your tax, utilize the Form 1040 ES. Payments can be made by mailing the form with your check to the designated mailing address, or you can choose to pay online.

## FAQs about OnlyFans taxes

### Am I required to fill out a W2 form from OnlyFans?
You do not receive a W-2 form from OnlyFans unless you are employed by them. As a content creator on the platform, it’s necessary for you to complete a W-9 tax form before accessing your earnings.

### What tax rate applies to my OnlyFans earnings?
Your earnings on OnlyFans are subject to both income tax and self-employment tax. In the U.S., the self-employment tax includes a 12.4% Social Security tax and a 2.9% Medicare tax, totaling 15.3%. Income tax rates will vary depending on your earnings.

### What type of tax form should I expect from OnlyFans?
The form you will receive from OnlyFans is a standard 1099 NEC (Nonemployee Compensation) form. You can find this form and other relevant forms for filing on the IRS website.

### Are taxes automatically withheld from my OnlyFans payments?
Unlike traditional employment where taxes are automatically deducted, OnlyFans does not withhold taxes. As an independent contractor, you are responsible for paying taxes on your earnings after OnlyFans takes their 20% commission.

### Will my OnlyFans income be reported on my tax return?

Should your earnings surpass $600 within a calendar year, OnlyFans is obligated to issue a 1099 NEC. This form will arrive from “Fenix International Limited,” the parent company of OnlyFans, thereby obscuring the connection.

If you have someone else filing your taxes and are apprehensive about their awareness, it might be wise to take on the tax preparation yourself.

## Conclusion: Filing taxes as an OnlyFans creator

Your responsibilities as an OnlyFans creator regarding taxes are significant and should not be overlooked. If you plan to take charge of your taxes, you should now have a clear grasp of the procedure. To summarize:

– You are classified as a sole proprietor of your business, which means you are self-employed.
– Income from OnlyFans will incur both income tax and self-employment tax.
– Before you can withdraw earnings, the OnlyFans W9 form must be completed.
– Expect to receive the OnlyFans 1099 form through mail in January, as well as digitally on the platform.
– It is necessary to file a Schedule C and Schedule SE in addition to your 1040 income tax return.
– You can deduct business-related expenses to lower your taxable income.
– If you foresee owing over $1000 in taxes from OnlyFans, quarterly payments are recommended. The countries included in this list are Tanzania, Kenya, the United States, the United Kingdom, Malaysia, the U.S., South Africa, New Zealand, Turkey, and the United Arab Emirates.

The following countries are also part of this list: Afghanistan, Albania, Algeria, American Samoa, Andorra, Angola, Anguilla, Antarctica, Antigua and Barbuda, Argentina, Armenia, Aruba, Australia, Austria, and Azerbaijan.

Additional countries include: 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.

The list continues with Cambodia, Cameroon, Canada, Cape Verde, Cayman Islands, Central African Republic, Chad, Chile, China, Christmas Island, Cocos (Keeling Islands), Colombia, Comoros, Congo, Cook Islands, Costa Rica, Côte D’Ivoire (Ivory Coast), Croatia (Hrvatska), Cuba, Cyprus, and the Czech Republic.

It further includes 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, and French Southern Territories.

The list also features 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.

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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, and Sao Tome and Principe are also part of this extensive compilation.

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Lastly, 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.), and US Minor Outlying Islands are included.

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 complete this list.

OnlyFans Taxes – Essential Information (Including Forms!)