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

Is it necessary to pay tax on your earnings from OnlyFans?

In most situations, yes.

The money you make on OnlyFans is liable to taxation under income tax in addition to self-employment tax. This comprises earnings from subscriptions, gratuities, contributions, PPV (pay-per-view) content, and other revenue streams the platform offers.

Your revenue from OnlyFans is subject to income tax similarly to a regular 9-5 job. The more you earn, the more you owe. Besides income tax, self-employment tax must also be paid. This tax is a fixed proportion of your income.

There is a specific income threshold that must be met before tax payment is required. This threshold varies primarily depending on your country of residence.

In numerous countries, even if your earnings are insufficient to mandate payment, you still need to declare the amount you generated.

Seems burdensome, right? This write-up will provide you with a much clearer comprehension of your tax responsibilities and how you can meet them.

What exactly is Self-employment tax?

The fundamental concept to grasp before filing taxes as an OnlyFans creator is that you are not employed by the platform.

You are operating your independent small enterprise, and you are the exclusive proprietor. Your association with OnlyFans is that of an independent contractor.

You are legally classified as self-employed. Therefore, you are obligated to settle self-employment tax besides income tax.

In the U.S., self-employment tax encompasses Social Security tax (12.4%) and Medicare tax (2.9%), totaling 15.3%. It is equivalent to the FICA tax withdrawn from employees’ pay stubs.

Self-employment tax is the means through which business proprietors and independent contractors meet FICA tax obligations.

Which forms should you acquaint yourself with?

Below are the tax forms you will encounter when preparing your taxes associated with OnlyFans:

W-9 – Appeal for Taxpayer Identification Number and Certification

The IRS mandates OnlyFans to possess your tax details on record.

OnlyFans does not deduct taxes automatically from your income. They forward you the total sum you earn (after applying their 20% deduction).

They necessitate your tax information to inform the IRS that taxes will be remitted for the money they transfer to you.

When you attempt to withdraw your earnings for the first time on OnlyFans, you will be asked to complete a w9 form.

Taxes on OnlyFans – the OnlyFans W9 tax form

How to populate W9 for OnlyFans

The form might appear daunting, particularly if it is your premiere encounter with taxes. Presented below are step-by-step directives to support you in filling it out.

• Line 1: Your complete name.
• Line 2: You can keep this blank unless you maintain a DBA “doing business as” appellation or an LLC.
• Line 3: Select the initial checkbox, “Individual/sole proprietor or single-member LLC.”
• Line 4: Leave this section uncompleted.
• Line 5 and 6: Your mailing address.
• Line 7: Leave this section vacant.
• Part 1: Input your SSN (social security number).
• Part 2: Append your signature and date to the form.

Only following the completion of the OnlyFans W9 form are you permitted to withdraw your earnings.

If you are located external to the U.S., you will have to fill out a w8-BEN instead.

This document essentially verifies that you are not a U.S. inhabitant and thus are not obligated to settle taxes to the IRS.

1099 NEC – Nonemployee Compensation

In contrast to the W-9, the 1099 NEC is not a form that necessitates completion. It serves as a record that will be dispatched to you by OnlyFans at the location indicated in your W-9.

The Onlyfans 1099 form specifies the precise amount of money you garnered on the platform throughout the entire year. This figure represents your total business revenue.

If you surpass $600 in earnings over the year and are a U.S. resident, OnlyFans will dispatch a 1099 NEC to you.

• If your earnings fall short of $600, OnlyFans will not dispatch a 1099 form to you. Nonetheless, you are still mandated to report any earnings to the IRS on your annual income tax return.
• If you are not a U.S. resident, you will not receive an OnlyFans 1099 form. It is even more imperative for you to maintain your documents, invoices, and receipts. An organized filing system will alleviate numerous headaches when payment time approaches.

Conclusively, when does OnlyFans dispatch tax forms?

If eligible for a 1099 NEC, you should receive one via mail by January 31st. Additionally, a digital version of the form will be accessible on OnlyFans.

1040 Schedule C

Given that you are a small business proprietor, you are required to submit a Schedule C alongside your standard 1040 tax return.

You are to state the total business income (as indicated on your 1099) and any business costs on this form.

The residual amount denotes your net income – essentially, your profit. This sum is what you will owe income tax and self-employment tax on.

In a moment, I will delve into the diverse Onlyfans tax deductions you should leverage to evade overpaying.

1040 Schedule SE

Once you have determined your net income on your Schedule C, you will complete Schedule SE.

Filing taxes for OnlyFans – Compute your OnlyFans taxes on the Schedule SE

Within Schedule SE, you will ascertain the self-employment tax you are liable for based on your net income.

Which tax deductions can you utilize as an OnlyFans creator?

Presently, for the segment you have likely anticipated, tax write-offs. The greater the number of items you can deduct as business expenses, the lower the aggregate tax payment you will be required to make.

Nevertheless – before we proceed, there is a crucial point to acknowledge.

Onlyfans tax write-offs are solely applicable to business proprietors, not hobbyists. Distinguishing between a business and a hobby can be somewhat subjective.

Some official criteria have been set up to assist you in determining your position.

The IRS will not categorize you as a business proprietor if you are not endeavoring to generate profit from your actions on OnlyFans.

This article, endorsed by the IRS, offers more detailed insights.

Note that using OnlyFans for leisurely pursuits does not exempt you from paying taxes entirely. You will not be required to pay self-employment tax but will still need to settle income tax.

• Tools acquired or leased for capturing, recording, shooting, editing, and processing (Cameras,smart devices, PCs, audio equipment, accessories, etc.). These are all necessary items to produce high-quality content for your OnlyFans venture.
• Wireless connection and data consumption. As your OnlyFans business operates entirely online, you must utilize the web to run it. Let’s assume you devote 30% of your airtime to working on your OnlyFans. You will be capable of deducting 30% of your internet bills as a business expense.
• Journey expenses. Travelling for closing a lucrative business opportunity, for instance. Or for filming content at a specific spot demanded by a high-paying patron. In both instances, you could consider your accrued fuel charges as a business expense.
• OnlyFans’ platform and transaction costs. This one’s a straightforward decision; you can conveniently regard this as an OnlyFans levy deduction.
• Attire. More precisely, tailored attire you must buy to satisfy subscriber demands. In contrast, you won’t be eligible to write off the informal clothing you purchase for everyday wear.
• Dress-up outfits for cosplays, if it’s something you exhibit on your OnlyFans.
• Methods for promotion that aid in attracting subscribers. Social Rise is one such example. It assists numerous creators in gaining more subs on Reddit in less time. And because you can deduct it, it’s essentially “cost-free”. Register now to appreciate all the efficiency benefits yourself.

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• Lease. If you’re leasing a space to film your OnlyFans content, you might be able to consider a portion of the rent as deductible.
• Cosmetics and beauty provisions you utilize exclusively for your OnlyFans content. This makeup must be distinct from your regular makeup collection.
• Agent fees and salaries. You might enlist a professional photographer or video editor to enhance content quality. You can view their wages as a business expense if you do.

You comprehend the essence of it. If it’s an expenditure you incur purely to benefit your business’s present operation or future expansion – and it offers little to no advantage to you personally – you will likely be able to deduct it.

For an expenditure to be deductible, it must be both common in your field of work and essential for your business. The IRS has some quite comprehensive instructions on what will and will not be accepted.

You ought to review this document before submitting your Schedule C. It will help you gain better insight into the deductions available to you.

It’s beneficial to have your OnlyFans-related invoices and receipts accessible, digitally or physically, so your deductions are supported by solid proof.

It’s improbable, but the IRS could inquire about the validity of your expenses.

It’s also wise to initiate a separate bank account for your OnlyFans-related earnings and expenses.

That way, the variance between your bank balance and gross income will reflect your business expenses.

Remember that this presumes no deposits or withdrawals unrelated to OnlyFans are performed.

When should I settle my Onlyfans taxes?

In the U.S., you must remit OnlyFans taxes quarterly (four times per year) if you anticipate paying more than $1000 in tax over the year. This is an approximated tax.

If you delay to pay annually, you’ll incur interest for not meeting the deadline. You could confront additional financial penalties on top.

Furthermore, since you’ll be approximating what you owe, the IRS gives you a 10% margin of error. So you won’t face repercussions if you’re slightly off.

The four deadlines for quarterly payments are:

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

To determine your estimated tax, you’ll have to refer to Form 1040 ES.

To remit, dispatch the form with a cheque for the amount owed to your designated mailing address.

pay online.

FAQs about OnlyFans taxes

Do I need to complete an OnlyFans W2 form?

If you’re not an OnlyFans employee, you won’t receive a W-2 from them. As a content creator on the platform, you must fill out a W-9 OnlyFans tax form before withdrawing any of your earnings.

How much taxes do you pay on OnlyFans?

Your earnings on OnlyFans are subject to income tax and self-employment tax.

What does OnlyFans tax form look like?

The tax form OnlyFans sends you is a regular 1099 NEC (Nonemployee Compensation) form. You can find a copy of it and all other forms you have to fill in this article or on the IRS website.

Does OnlyFans take out taxes from my earnings?

Will OnlyFans show up on my taxes?

OnlyFans will send you a 1099 NEC if you earn more than $600 in the year. Fortunately, the document will be sent by “Fenix International Limited.” This is the parent company behind OnlyFans.

Final Thoughts: How to process taxes for OnlyFans

There are various tasks you must execute as a creator on OnlyFans, and taxes are one you definitely can’t ignore. If you opt to handle it independently, you now have a pretty decent idea of how to deal with taxes for OnlyFans. To summarize:

• You are the sole owner of your business. You’re self-employed.
• Your OnlyFans earnings are subject to income tax and self-employment tax.
• Before you can request payment, it is important to complete the OnlyFans W9 form.
• Every January, you will get an Onlyfans 1099 form through postal services and also an electronic copy on the platform.
• As part of your 1040 income tax return, you will need to submit both Schedule C and Schedule SE.
• To lower your taxable income, you have the option to deduct business-related expenses.
• If you foresee owing over $1000 in OnlyFans taxes, it is advisable to make quarterly payments.