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

 

Are you wondering about tax obligations related to your OnlyFans income?

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

The taxation of your OnlyFans income follows the same principles as those for conventional employment income, meaning that a higher amount earned leads to larger tax payments. Moreover, a section of your revenue is subject to self-employment tax.

There is an income threshold at which you are required to begin paying taxes, and this threshold varies by country.

In many jurisdictions, even if you do not reach the threshold, you are still obligated to report your earnings.

This article seeks to clarify your tax obligations.

Grasping Self-employment Tax

When addressing taxes related to OnlyFans, keep in mind that you are not regarded as an employee, but as a business owner.

You function as an independent contractor, thus classified as self-employed, which mandates both self-employment and income tax.

In the United States, self-employment tax includes Social Security (12.4%) and Medicare tax (2.9%), summing up to 15.3%, similar to FICA deductions.

This tax structure is how business owners and contractors fulfill their FICA tax obligations.

Essential Tax Forms

The following are key tax forms necessary for handling your OnlyFans tax requirements:

W-9 – Taxpayer Identification Information and Certification Request

OnlyFans asks for your tax information but does not withhold taxes automatically. They provide your total earnings (after deducting their 20% share) and utilize your tax details for IRS filings.

Upon your first withdrawal from OnlyFans, you will be asked to complete a W-9 form.

 Taxes on OnlyFans – the OnlyFans W9 tax form

How to fill out W9 for OnlyFans

The process of completing the W9 can feel overwhelming, especially for those new to taxes. Follow these instructions:

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

It’s crucial to submit the OnlyFans W9 form for the withdrawal of your earnings.

If you are outside the U.S., fill out a W8-BEN form instead, to indicate non-residency and claim exemption from U.S. taxes.

1099 NEC – Nonemployee Compensation

In contrast to the W-9, the 1099 NEC is a
To complete this form, it is necessary for you to…

To finalize a document, OnlyFans will send it to the address you’ve provided on your W-9.

Your gross business income is determined by the exact amount you earned on OnlyFans during the year.

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

• OnlyFans will not issue a 1099 form if your earnings fall below $600. Still, you must report your earnings to the IRS on your yearly income tax return.
• Non-U.S. residents will not receive a 1099 form from OnlyFans. It’s essential to keep your documents, bills, and receipts organized to prevent issues during tax season.

When does OnlyFans send out tax forms?

If you qualify for a 1099 NEC, you can expect to receive it by mail no later than January 31st. Additionally, a digital format will be accessible on OnlyFans.

1040 Schedule C

As a small business owner, it is necessary to file a Schedule C along with your regular 1040 tax return.

You will indicate your gross business income (as stated on your 1099) and any business expenses on this form.

Your net income, representing your profit, is the amount on which you owe both income tax and self-employment tax.

Next, we will look into various tax write-offs available to OnlyFans creators that could help reduce your tax burden.

1040 Schedule SE

Once you’ve calculated your net income on Schedule C, proceed to fill out Schedule SE.

 Calculating OnlyFans taxes on Schedule SE

In this section, you determine your self-employment tax owed, based on your net income.

What tax write-offs are accessible to OnlyFans creators?

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

However, it is essential to note an important caveat.

Tax write-offs for OnlyFans apply exclusively to business owners, not to hobbyists, and differentiating between the two may be subjective.

The IRS classifies you as a business owner if you are aiming to profit from your activities on OnlyFans.

For further clarity, refer to this IRS article.

If you earn through OnlyFans as a hobby, it does not exempt you from taxes. You will still owe income tax, but not self-employment tax.

Returning to our topic: What potential business expenses may you deduct?

• Equipment utilized or rented for shooting, recording, editing, and processing (This includes cameras, smartphones, computers, sound equipment, props, etc.). These are critical for content creation on OnlyFans.
• Wi-Fi and data expenses. Given the online nature of your OnlyFans venture, having internet access is vital for its operation. For example, if you dedicate 30% of your time working on OnlyFans, consider deducting 30% of your internet bills as a business expense.

You can also claim travel expenses related to closing significant business opportunities or creating content in specific locations requested by clients. Furthermore, deductions might include platform fees and transaction charges from OnlyFans. Concerning clothing, you could potentially deduct custom outfits made for subscriber requests, although everyday attire would not qualify. If you display costumes for cosplay on your OnlyFans, those expenditures could also be eligible for deductions. Promotion tools like Social Rise, which assists creators in gaining subscribers on Reddit, can likewise be deducted. Signing up is easy and free, requiring no credit card, allowing for quick posting once you have Reddit access.

Rent costs for a location used solely for filming OnlyFans content could be partially deductible. Be sure to separate makeup and beauty products that are exclusively for your OnlyFans work from regular supplies to maximize potential tax write-offs. If you employ professionals like photographers or video editors, their fees may also be considered deductible business expenses.

Remember that to qualify for deductions, expenses must be deemed ordinary and necessary for your business according to IRS standards. Before you submit your Schedule C, examine the deductions that may be available to you. To support your tax deductions, it’s advisable to keep organized records of any OnlyFans-related bills and receipts. Establishing a separate bank account for tracking income and expenses related to OnlyFans is a good practice to help distinguish business transactions from personal ones.

When it comes to taxes on your OnlyFans income, keep in mind that in the U.S., you may need to pay quarterly taxes if you expect to owe more than $1,000 in taxes for the year. Not paying quarterly taxes could lead to penalties and interest. Smaller quarterly payments can be easier to manage compared to paying a larger amount at once at the year’s end. The total amount due at year’s end may not be overwhelming. Additionally, the IRS allows a 10% margin of error for estimating your tax liability, so minor inaccuracies won’t create problems. Payment deadlines for quarterly taxes are:

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

To estimate your taxes, you’ll need to use Form 1040 ES. You can pay the owed amount by mailing the completed form with a check to your appropriate mailing address or by choosing to pay online.

## FAQs regarding OnlyFans taxes

### Is an OnlyFans W2 form necessary?
You do not receive a W-2 form from OnlyFans unless you are an employee of the company. As a content creator on the platform, you must complete a W-9 OnlyFans tax form prior to withdrawing your earnings.

### What tax rates apply to OnlyFans earnings?
Earnings from OnlyFans are subject to both income tax and self-employment tax. In the U.S., the self-employment tax encompasses Social Security tax (12.4%) and Medicare tax (2.9%), summing up to 15.3%. The rates for income tax differ depending on your earnings.

### What does an OnlyFans tax form appear like?
The tax form provided by OnlyFans is a standard 1099 NEC (Nonemployee Compensation) form. You can find this form along with other required documents for filing on the IRS website.

### Will OnlyFans deduct taxes from my earnings?
Unlike conventional employment where tax deductions are made automatically, OnlyFans does not withhold taxes from your earnings. As an independent contractor, it is your duty to pay taxes on your income after OnlyFans takes its 20% commission.

### Will my OnlyFans earnings be reported on my taxes?
OnlyFans issues a 1099 NEC when your annual earnings surpass $600. The document will be dispatched by “Fenix International Limited,” the parent company of OnlyFans, which may make it less apparent.

If you’re worried about a tax preparer noticing this, it might be wise to take care of your tax filing on your own.

## Conclusion: How to file taxes for OnlyFans

– You operate as a sole proprietor running your business, which classifies you as self-employed.
– Your earnings from OnlyFans are liable for both income and self-employment taxes.
– It is mandatory to fill out the W9 form from OnlyFans prior to withdrawing your earnings.
– You will receive the 1099 form from OnlyFans in January, both by mail and digitally through the platform.
– It is required to file a Schedule C and Schedule SE alongside your 1040 income tax return.
– You can deduct business-related expenses to lower your taxable income.
– If you expect to owe more than $1000 in taxes from OnlyFans, consider making quarterly payments. The following countries are included: Tanzania, Kenya, the United States, the United Kingdom, Malaysia, the U.S., South Africa, New Zealand, Turkey, and the United Arab Emirates.

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

They 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.

As well as 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.

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 are also included.

The list continues with 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.

In addition, 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 are also part of this collection.

From 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 are also recognized.

This is extended to include 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.), and US Minor Outlying Islands make the final notes.

Lastly, 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 are also included in this list.

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