Massive competition, an ever-growing demand for creative ideas, and an overwhelmingly demanding fan base are just some of the elements that make being an adult content creator one of the toughest jobs in the entertainment industry.
In this article, you will discover how to file taxes as an adult content creator.
Defining One’s Tax Status as an Adult Content Creator – Independent Contractor vs. Employee
The first element to determine which type of forms an adult content creator must file with the Internal Revenue Service (IRS) is whether one classifies as an independent contractor or an employee.
As its name suggests, an independent contractor is treated as a self-employed entrepreneur for tax purposes. OnlyFans models are a great example of adult content creators treated as “small business owners.”
As the platform itself does not hire content creators as employees, each content creator receives directly from viewers. Hence, each content creator posting content on OnlyFans set their working hours, using their own tools and investing from their funds.
Platforms like OnlyFans will not pay taxes on behalf of content creators, as each professional must withhold the owed amount from their respective paychecks.
Conversely, an employee is a professional hired by a business through an employment agreement. While many adult content producers prefer to work on their own, it is not hard to find professionals in this segment signing contracts with entertainment and media companies.
In such cases, the company is responsible for handling all the tax burden, paying employment taxes, and providing the required benefits.
Filing Taxes as an Adult Content Creator – Which IRS Forms Should I Use?
When filing tax returns with the IRS, adult content creators must use adequate forms. As expected, the forms used to file tax returns with the IRS depending on each case. For self-employment creators, the most common form is IRS Form 1099.
Freelancers, self-employed workers, and independent contractors utilize Form 1099 to file tax returns, as the companies they work with do not withhold Social Security and Medicare taxes directly from them. Currently, the self-employment tax rate is around 15,3%.
Those filing tax returns with the IRS as employees of a larger adult content conglomerate or entertainment juggernaut must use Form W-2 (Wage & Tax Statement). This form is used by employees, as their respective employers are responsible for withholding taxes from their earnings.
Companies use the W-2 tax form to report annual compensation paid to their employees and the payroll taxes withheld from the amount paid to them. Hence, employers are paid through the employer’s payroll and the taxes are withheld throughout the fiscal year.
On January 31st of the following calendar year, all employers are required to mail W-2 forms to their employees.
Filing Taxes as an Adult Content Creators Should Not be Overwhelming – Immediately Contact an Expert CPA
Why would you waste time with uncertainty when you can smoothly handle your tax burden and guarantee full compliance throughout the entire process? Contact Edward D. Quilca, CPA by calling (786) 310-5582 or emailing [email protected] to find the best strategy to handle your taxes as an adult content creator.
