How to Successfully File OnlyFans Taxes in 2023
As an OnlyFans creator, it’s important to keep track of your earnings and expenses throughout the year to file your taxes correctly and avoid penalties and fines.
Determine your taxable income
Your taxable income is your earnings from OnlyFans minus any applicable expenses. You can deduct expenses such as equipment, internet costs, and any other expenses related to creating your content.
Fill out the appropriate tax forms
As a small business owner, you’ll need to fill out Schedule C to report your income and expenses. You’ll also need to fill out Schedule SE to calculate and pay your self-employment taxes.
Calculate your self-employment taxes
Your self-employment taxes will be calculated based on your net income from OnlyFans. The current self-employment tax rate is 15.3%, which includes both the Social Security and Medicare taxes.
Check out this Youtube video on “How I File My ONLYFANS TAXES!” if you want to learn how to properly pay your taxes as a creator on a social media platform!
Understanding OnlyFans Tax
OnlyFans, a subscription-based content-sharing platform, has gained immense popularity worldwide. However, whether you’re new to the platform or have been generating income for quite some time, you should know that OnlyFans income is taxable.
The Internal Revenue Service (IRS) considers OnlyFans creators as small business owners, meaning you’ll need to pay self-employment taxes on your income at a flat rate of 15.3%. This is because any money you earn from OnlyFans, including tips, is subject to the same taxes as a regular job.
As a result, you’ll need to pay income and self-employment taxes on it.
It’s important to keep track of your income and expenses to ensure that you pay the right amount of taxes to avoid penalties and interest charges. You can do this by keeping accurate records of all your earnings and expenses related to your OnlyFans content.
This includes things such as camera equipment, costumes, and makeup, as these can be considered business expenses and can be deducted from your taxable income.
Additionally, if you earn more than $600 from OnlyFans in a year, you’ll receive a 1099 tax form from the company. This form will detail your earnings, which you’ll need to report on your tax return.
You should also consult with a tax professional to help you navigate any complexities related to your OnlyFans income and taxes.
Deductible Expenses for OnlyFans Creators
As a small business owner, as recognized by the Internal Revenue Service (IRS), OnlyFans creators are subject to self-employment taxes of 15.3% on their income. However, there are deductible expenses that help reduce the taxable income.
These include:
| Expenses | Description |
| Office Supplies | Expenses for pens, printer paper, toner, and other supplies used to prepare for OnlyFans content creation |
| Internet Service Provider | Costs of internet services used for OnlyFans business |
| Cell Phone Expenses | Percentage of cell phone expenses used for OnlyFans business |
Note that these expenses must be used solely for business purposes to be deductible, so keep detailed records of your purchases.
How to File OnlyFans Taxes
As an OnlyFans creator, it’s important to be aware of your tax responsibilities to avoid any potential legal issues. Here are the steps on how to file your OnlyFans taxes:
Determine your tax obligation
Any money you earn from your OnlyFans account is considered self-employment income, and you’ll need to pay both income and self-employment taxes on it. The self-employment tax rate is a flat rate of 15.3%.
You will need to report your earnings as “other income” on your 1040 form.
Keep track of expenses
Ensure to keep track of all expenses related to your OnlyFans business and gather all of your receipts. Any expenses incurred in running your OnlyFans business, such as pens, printer paper, and toner, are tax-deductible.
Additionally, internet and cell phone expenses used for your OnlyFans account are deductible as well.
File your taxes
You can report your OnlyFans earnings on a Schedule C form if you’re treating your OnlyFans account like a real business. Calculate your net earnings from your OnlyFans account, which is your earnings minus expenses.
You will then enter this value on your Schedule C form, along with your deductible expenses. Finally, attach your Schedule C form to your 1040 form and file your taxes.
When to Get Professional Help for Your OnlyFans Taxes
If you’re feeling overwhelmed trying to navigate OnlyFans taxes on your own, it might be time to consider bringing in a tax professional. Here are a few situations where it’s especially important to get some help:
- You have a lot of expenses: Keeping track of all your business expenses and knowing which ones are deductible can be tricky. A tax expert can help you make sure you’re claiming every possible deduction and maximizing your tax savings.
- You’re unsure how to report your income: If you’re not sure how to properly report the income you make from OnlyFans, a tax professional can guide you through the process and help you avoid making mistakes that could lead to penalties.
- You’ve received a notice from the IRS: If you’ve received a notice from the IRS regarding your OnlyFans taxes, it’s important to seek professional help as soon as possible. An experienced tax professional can help you understand what the notice means and how to respond appropriately.
- You’re planning on expanding your business: If you’re planning on expanding your OnlyFans business, it’s a good idea to consult with a tax professional to make sure you’re handling your finances in the most efficient and effective way possible.
Ultimately, hiring a tax professional can give you peace of mind and help ensure that you’re not missing out on any deductions or paying more in taxes than you need to.
Conclusion
As an OnlyFans creator, it’s important to understand the tax implications of your income and expenses. Remember that any money earned from OnlyFans is subject to income tax and self-employment tax.
However, you can reduce your taxable income by deducting expenses related to your OnlyFans business. Keep accurate records of your income and expenses and consider seeking professional help if you are unsure about how to file your taxes correctly.
By staying compliant with tax laws, you can continue to grow your OnlyFans business and achieve long-term success.
References
- by Allana Akhtar, Business Insider, April 2021
- “What UK OnlyFans Creators Need To Know About Sorting Their Taxes”
