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

 

Are you curious about tax obligations concerning your OnlyFans earnings?

Generally, yes. Your OnlyFans income is subject to income tax and self-employment tax. This encompasses revenue from subscriptions, tips, donations, PPV content, and other sources on the platform.

OnlyFans earnings are taxed similarly to traditional employment income, where a higher income corresponds to increased tax obligations. Furthermore, a portion of your income is liable for self-employment tax.

Each country has a specific income threshold that dictates when tax payments are required.

In various jurisdictions, it may be mandatory to report your earnings, even if you do not reach the threshold.

This article intends to clarify your tax obligations.

Self-employment Tax Explained

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

You function as an independent contractor, thus being deemed self-employed, which requires you to pay self-employment tax alongside income tax.

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

This tax acts as a mechanism for independent business owners and contractors to remit FICA tax.

Essential Tax Forms

The following are crucial tax forms for handling your responsibilities regarding OnlyFans:

W-9 – Taxpayer Identification Document and Certification Request

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

Initially, when you withdraw earnings from OnlyFans, you’ll need to fill out a W-9 form.

 Taxes on OnlyFans – the OnlyFans W9 tax form

How to Complete W9 for OnlyFans

Completing the W9 might appear intimidating, particularly for those unfamiliar with taxes. Follow these guidelines:

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

It is mandatory to submit the OnlyFans W9 form before you can withdraw your earnings.

If you reside outside the U.S., fill out a W8-BEN form instead, indicating non-residency and exemption from IRS taxes.

1099 NEC – Nonemployee Compensation

Contrarily to W-9, the 1099 NEC is not a
To complete this form, you’ll need

To receive a document that OnlyFans will mail to the address you provide in your W-9, you must complete the form.

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 you a 1099 NEC.

• OnlyFans will not send you a 1099 form if your earnings are below $600. Nevertheless, reporting your earnings on your annual income tax return is mandatory for IRS compliance.
• Those who are not U.S. residents will not receive a 1099 form from OnlyFans. It is essential to keep your documents, bills, and receipts organized to prevent issues when tax season arrives.

When does OnlyFans issue tax forms?

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

1040 Schedule C

As a small business owner, filing a Schedule C alongside your standard 1040 tax return is necessary.

This form requires you to list your gross business income (matching the figure on your 1099) along with any business expenses.

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

Next, we will examine various tax write-offs available for OnlyFans creators to help reduce your tax liability.

1040 Schedule SE

After calculating your net income on Schedule C, you must fill out Schedule SE.

 Filing taxes for OnlyFans – Calculate your OnlyFans taxes on Schedule SE

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

What tax write-offs can OnlyFans creators utilize?

Now, let’s discuss tax write-offs – the greater the business expenses you can deduct, the lower your overall tax obligation.

However, be aware of one crucial caveat.

Tax write-offs for OnlyFans are applicable only to business owners, not to hobbyists, as this distinction can sometimes be subjective.

If the IRS determines that you are intending to profit from your OnlyFans pursuits, then you are classified as a business owner.

You can refer to this IRS article for more detail.

Engaging in OnlyFans as a hobby will not exempt you from taxes. While self-employment tax may be waived, you’ll still need to pay income tax.

Back to the topic: What possible business expenses can you claim as deductions?

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

You can also deduct travel expenses related to securing high-value business opportunities or content creation at specific client-requested locations. Another allowable deduction could be the fees associated with the OnlyFans platform and transactions. When it comes to clothing, custom garments for subscriber demands might be deductible, while regular attire usually isn’t. If you feature cosplay costumes on your OnlyFans, those costs may also qualify for deductions. Promotion tools such as Social Rise, which help creators increase their subscriber count on Reddit, can also be written off. The sign-up process is straightforward and free, requiring no credit card to post quickly via Reddit access.

Rent costs for a location utilized solely for OnlyFans content creation may be partially deductible. It’s important to keep makeup and beauty supplies used exclusively for your OnlyFans work separate from other supplies for possible tax deductions. If you employ professionals like photographers or editors, their fees could also be deemed a business expense eligible for deduction.

Remember, for expenses to qualify as deductible, they need to be ordinary and necessary for your business as defined by IRS guidelines. Prior to submitting your Schedule C, check the potential write-offs available to you. Keep organized records of your OnlyFans-related invoices and receipts to substantiate your tax deductions. Setting up a separate bank account for tracking OnlyFans income and expenses is a prudent approach to distinguish between personal and business transactions.

Concerning taxes on your OnlyFans earnings, be aware that in the U.S., you may need to make quarterly tax payments if you expect to owe over $1,000 in taxes for the year. Neglecting to pay quarterly taxes could lead to interest and penalties. Making smaller quarterly payments is generally more manageable than paying a large amount in one go. By year-end, the total may not be substantial. Additionally, the IRS allows for a 10% margin of error in estimating your tax liability, so minor discrepancies won’t create problems. The deadlines for quarterly payments are:

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

For estimated tax calculation, Form 1040 ES should be utilized. Payment can be submitted by mailing the completed form along with a check to your designated mailing address or by choosing to pay online.

## FAQs about OnlyFans taxes

### Do I need to fill out an OnlyFans W2 form?
You do not receive a W-2 form from OnlyFans unless you are employed by them. As a content creator, you are required to complete a W-9 OnlyFans tax form before withdrawing your earnings.

### How much taxes do you pay on OnlyFans?
On OnlyFans, your earnings are subject to income tax and self-employment tax. In the United States, self-employment tax includes Social Security tax (12.4%) and Medicare tax (2.9%), aggregating to 15.3%. Income tax rates differ based on your total earnings.

### What does the OnlyFans tax form look like?
The tax form provided by OnlyFans is a standard 1099 NEC (Nonemployee Compensation) form. You can find a copy of this form, along with others essential for filing, on the IRS website.

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

### Will OnlyFans be reported on my taxes?
OnlyFans will provide a 1099 NEC for your yearly earnings if they exceed $600. This form will be sent by “Fenix International Limited,” the parent company of OnlyFans, which may make the connection less evident.

If you have someone else filing your taxes and worry they might notice, you might want to consider doing your taxes on your own.

## Conclusion: How to file taxes for OnlyFans

– You function as the sole proprietor of your venture, meaning you are self-employed.
– Your income from OnlyFans is subject to both income tax and self-employment tax.
– Prior to withdrawing your earnings, you need to complete the OnlyFans W9 form.
– Expect to receive the OnlyFans 1099 form in January, both by mail and digitally on the platform.
– You will be required to file a Schedule C and Schedule SE alongside your 1040 income tax return.
– Business-related expenses are deductible, which can help reduce your taxable income.
– If you believe you will owe more than $1000 in OnlyFans taxes, it’s wise to make quarterly payments. Countries included are Tanzania, Kenya, the United States, the United Kingdom, Malaysia, 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.

Lists further 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.

Countries such as Cambodia, Cameroon, Canada, Cape Verde, the 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, the Dominican Republic, East Timor, Ecuador, Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, the Falkland Islands (Malvinas), the Faroe Islands, Fiji, Finland, France, Metropolitan, French Guiana, French Polynesia, and 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.

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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, Sao Tome and Principe.

Lastly, 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.

Additionally, 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!)