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

 

Curious about tax liabilities on OnlyFans income?

Generally speaking, the answer is yes. Your earnings on OnlyFans are liable for both income tax and self-employment tax. This encompasses earnings from subscriptions, tips, donations, PPV content, and other revenue streams within the platform.

Your OnlyFans income is taxed in a manner akin to standard employment income, where a greater income amount results in larger tax liabilities. Moreover, part of your earnings is also subject to self-employment tax.

There’s a specific income threshold that dictates when taxes need to be paid, and this threshold varies based on your country.

In numerous locations, you are required to report your earnings even if you fall short of the threshold.

This article intends to clarify your tax obligations.

Deciphering Self-employment Tax

When it comes to tax obligations related to OnlyFans, keep in mind that you are not classified as an employee; rather, you are a business owner.

You act as an independent contractor, which designates you as self-employed, meaning you are liable for 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%), accumulating to a total of 15.3%, mirroring FICA deductions.

This tax is the method through which business owners and independent contractors contribute to the FICA tax system.

Essential Tax Forms

Here are the fundamental tax forms to consider for addressing your OnlyFans tax responsibilities:

W-9 – Taxpayer Identification Document and Certification Request

OnlyFans necessitates your tax information, but it doesn’t automatically withhold taxes. They provide your total earnings (after subtracting their 20% cut) and utilize your tax data for IRS-related matters.

At the onset of withdrawing funds from OnlyFans, you will be required to fill out a W-9 form.

 Taxes on OnlyFans – the OnlyFans W9 tax form

How to Complete W9 for OnlyFans

Completing the W9 form might feel overwhelming, especially for those new to taxes. Follow these guidelines:

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

It is crucial to submit the OnlyFans W9 form to access your earnings.

If you are situated outside the U.S., you must fill out a W8-BEN form to assert non-residency and exemption from IRS taxation.

1099 NEC – Nonemployee Compensation

In contrast to the W-9, the 1099 NEC does not serve as a
To complete this form, you will need to…to finalize a document that will be mailed to you by OnlyFans at the address indicated in your W-9.

Your gross business income is determined by the exact total you earned on OnlyFans throughout the year.

If you reside in the U.S. and earn more than $600 in a year, OnlyFans will provide you with a 1099 NEC.

• In case your earnings are under $600, OnlyFans won’t issue a 1099 form. Nonetheless, you are still obliged to report your income to the IRS in your annual tax return.
• OnlyFans 1099 forms will not be sent to non-U.S. residents. Keeping your documents, bills, and receipts organized is essential to prevent issues during tax season.

When are tax forms distributed by OnlyFans?

If you qualify for a 1099 NEC, it should arrive by mail by January 31st at the latest. A digital version will also be accessible on OnlyFans.

1040 Schedule C

If you are a small business owner, you are required to submit a Schedule C together with your standard 1040 tax return.

This form requires you to specify your gross business income (according to your 1099) in addition to detailing any business-related expenses.

Your net income represents the profit, which is the amount subject to income tax and self-employment tax.

Next, let’s examine different tax write-offs available to OnlyFans creators that can help reduce your tax burden.

1040 Schedule SE

After assessing your net income on Schedule C, you should complete Schedule SE.

 Filing taxes for OnlyFans – Calculate your OnlyFans taxes using Schedule SE.

This is where you will determine the self-employment tax based on your net income.

What tax write-offs can OnlyFans creators utilize?

Now let’s discuss tax write-offs – the more business expenses you deduct, the less you owe in total taxes.

However, it’s important to highlight a critical point.

OnlyFans tax write-offs are only applicable for business owners, not hobbyists, since the line between the two can be ambiguous.

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

For additional clarification, please refer to this IRS article.

If you earn income on OnlyFans as a hobby, you are not exempt from taxes. While you can avoid self-employment tax, income tax will still apply.

Returning to the earlier point: What are some possible business expenses you may deduct?

• Equipment utilized or rented for shooting, recording, editing, and processing (such as cameras, smartphones, computers, sound equipment, props, etc.). These are vital for producing content on OnlyFans.
• Wi-Fi and data expenses. Considering the online nature of your OnlyFans business, proper internet access is essential. For instance, if you dedicate 30% of your time working on OnlyFans, you might consider deducting 30% of your internet bills as a business expense.

Additionally, travel expenses related to closing high-value business opportunities or creating content at client-requested locations can be deducted. Another potential deduction includes fees associated with the OnlyFans platform and transactions. You might also be able to write off custom clothing made for subscriber requests, though everyday wear is not eligible. If you present costumes for cosplays on your OnlyFans account, those expenses could be deductible as well. Promotional tools like Social Rise, which helps creators gain subscribers on Reddit, are also deductible. Signing up is straightforward and free of charge, requires no credit card, and allows for easy posting with Reddit access.

Rent expenses for a space used solely for shooting OnlyFans content may be partially deductible. It’s important to distinguish makeup and beauty supplies used exclusively for your OnlyFans work from regular supplies for potential tax deductions. Additionally, wages for professionals like photographers or video editors you hire could qualify as a deductible business expense.

It’s essential to remember that expenses must be ordinary and necessary for your business according to IRS guidelines in order to be deductible. Reviewing the available write-offs before submitting your Schedule C is advisable. Keeping well-organized records of your OnlyFans-related bills and receipts can bolster your tax deductions. Setting up a separate bank account for tracking OnlyFans income and expenses can help keep business-related transactions distinct.

Concerning taxes on your OnlyFans income, be aware that in the U.S., if you expect to owe over $1,000 in taxes annually, you may need to make quarterly tax payments. Not fulfilling quarterly tax obligations could lead to interest and penalties. Paying taxes in smaller, quarterly increments could be more manageable than addressing a larger sum at year-end. At the year’s conclusion, the total amount owed is generally less significant. Additionally, the IRS allows for a 10% margin of error when estimating your tax liability, minimizing potential issues if your estimate is slightly off. The deadlines for quarterly payments are as follows:

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

To estimate your tax liability, you’ll need to utilize Form 1040 ES. You can submit your payment by mailing the form along with a check for the amount owed to your designated mailing address or choose to pay online.

## FAQs about OnlyFans taxes

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

### How much taxes do you pay on OnlyFans?
Income generated from OnlyFans is subject to both income tax and self-employment tax. In the U.S., the self-employment tax includes a Social Security tax of 12.4% and a Medicare tax of 2.9%, totaling 15.3%. Income tax rates depend on your earnings.

### What does the OnlyFans tax form look like?
The tax document provided by OnlyFans is a standard 1099 NEC (Nonemployee Compensation) form. You can find a copy of this form and other necessary documents for filing on the IRS website.

### Does OnlyFans withhold taxes from my earnings?
Unlike a standard job in which taxes are automatically deducted, OnlyFans does not withhold taxes. As an independent contractor, you’re responsible for paying taxes on your earnings after OnlyFans has taken its 20% commission.

### Will OnlyFans be reported on my taxes?

A 1099 NEC will be provided by OnlyFans if your yearly earnings surpass $600. This document will come from “Fenix International Limited,” which is the parent company of OnlyFans, thereby making it less recognizable.

If you have someone else prepare your taxes and are worried about them spotting the earnings, you might want to consider doing your own taxes.

## Conclusion: Tax Filing for OnlyFans

As an OnlyFans creator, fulfilling tax responsibilities is vital and should not be overlooked. If you decide to manage your taxes on your own, you are now equipped with a clear understanding of the process. In brief:

– You function as the sole proprietor of your business, categorizing you as self-employed.
– The income you generate from OnlyFans is liable for both income tax and self-employment tax.
– It is essential to complete the OnlyFans W9 form before you can withdraw your earnings.
– Expect to receive the OnlyFans 1099 form in January, both through the mail and digitally on the platform.
– You are required to file a Schedule C and Schedule SE along with your 1040 income tax return.
– You can deduct business-related expenses to lower your taxable income.
– If you foresee owing more than $1000 in OnlyFans taxes, making quarterly payments is recommended. The countries included are Tanzania, Kenya, the United States, the United Kingdom, Malaysia, the U.S., South Africa, New Zealand, Turkey, and the United Arab Emirates.

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

Includes nations such as 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, Cote D’Ivoire (Ivory Coast), Croatia (Hrvatska), Cuba, Cyprus, and the Czech Republic.

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 has 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.

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

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

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

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 included.

This also covers 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.

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 mentioned.

Countries such as 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 part of this list.

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