If you are wondering how to file taxes as an OnlyFans creator, you came to the right place. We are here to help you navigate the sometimes confusing process of filing taxes as an OnlyFans creator smoothly and confidently.
Below, we will explain the basics of how to file taxes as an OnlyFans creator, including what forms you need, what expenses you can deduct, and how to avoid common mistakes.
What Forms Do You Need?
As an OnlyFans creator, you are considered a self-employed individual by the IRS. This means that you are responsible for reporting your income and paying self-employment taxes on it. Self-employment taxes consist of Social Security and Medicare taxes, which are normally withheld from your paycheck if you are an employee.
The main form that you need to file taxes as an OnlyFans creator is Schedule C, which is used to report your income and expenses from your business. You will need to attach Schedule C to your Form 1040, which is the standard individual income tax return.
In addition to Schedule C, you might also need to file Schedule SE, which is used to calculate your self-employment tax.
You might also receive Form 1099-NEC from OnlyFans, which is used to report nonemployee compensation. OnlyFans will send you Form 1099-NEC if you earned more than $600 from them in a year. Form 1099-NEC will show the total amount that OnlyFans paid you, including subscriptions, tips, and pay-per-view messages. You will need to report this amount on Schedule C as part of your gross income.
What Expenses Can You Deduct?
One of the benefits of being self-employed is that you can deduct your business expenses from your income, which lowers your taxable income and your tax liability. However, you have to be careful—the IRS has strict rules about what qualifies as a business expense and how to substantiate it.
According to the IRS, a business expense must be both ordinary and necessary for your business. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your business.
For an OnlyFans business, some of the expenses that might qualify as ordinary and necessary are:
- Equipment and supplies, such as cameras, lights, microphones, costumes, makeup, props, etc.
- Internet and phone services.
- Software and apps, such as editing tools, streaming platforms, etc.
- Advertising and marketing, such as social media ads, website hosting, domain name, etc.
- Travel and transportation, if you travel for your business.
- Home office, such as a portion of your rent, mortgage, utilities, etc., if you use a part of your home exclusively and regularly for your business.
- Education and training, such as courses, books, seminars, etc., that improve your skills or knowledge related to your business.
To deduct your expenses, you will need to keep track of them and keep receipts, invoices, statements, or other proof of payment.
Are Mistakes Easy to Make?
Unfortunately, yes. Filing taxes as an OnlyFans creator can be complicated and confusing, especially if you are new to self-employment.
Here are some common mistakes that you should avoid when you file taxes as an OnlyFans creator:
- Not reporting all your income. You have to report all your income from OnlyFans, even if you do not receive Form 1099-NEC from them. You also have to report any other income that you receive from other sources, such as other platforms, sponsors, affiliates, etc.
- Not paying estimated taxes. As a self-employed individual, you have to pay taxes throughout the year, not just at the end of the year. You have to make quarterly estimated tax payments to the IRS based on your expected income and expenses for the year.
- Not keeping good records. You have to keep accurate and organized records of your income and expenses for at least three years, in case the IRS audits you. If you do not keep good records, you might not be able to claim your deductions or prove your income, which could result in higher taxes or penalties.
It Is Easy to File Taxes as an OnlyFans Creator When You Work with Experts
Filing taxes as an OnlyFans creator can be overwhelming and stressful, especially if you are not familiar with the tax laws and regulations that apply to your case. That is why working with a professional and experienced CPA firm can be incredibly beneficial.
At Quilca CPA Group, we specialize in helping OnlyFans creators with their taxes. We have the knowledge and expertise to help you maximize your deductions, minimize your taxes, and avoid issues with the IRS.
We will work with you to understand your goals and provide you with personalized solutions. Contact us today at (786) 310-5582 or [email protected] to schedule an initial consultation with one of our experienced tax professionals.
