The Complete Guide to OnlyFans Taxes For Creators

One of the most common questions we get asked here at AROA is ‘do OnlyFans creators pay taxes?’

The short answer is, yes. 

Tax compliance is incredibly important, but it can feel complicated and overwhelming, especially if you’re new to self-employment or you’ve never had a side-hustle before. 

Don’t panic though! In this guide we’ll go through everything you need to know about OnlyFans taxes, so you can avoid any serious consequences. 

Do You Have to Pay Taxes on OnlyFans? 

Yes. The IRS (Internal Revenue Service) treats OnlyFans income as it would any other form of self-employment income, so you will need to pay taxes on the money you earn. This goes for any form of income, including tips, gifts, and donations. 

You must pay both federal income tax and self-employment tax on your OnlyFans earnings. Since you’re not considered an employee, you will receive income without taxes withheld, meaning it is entirely your responsibility to file a return and pay both income tax and self-employment tax. 

Federal Income Tax 

Federal Income Tax covers everything you earn in a year (January to December). It works on a progressive and tiered system, so the tax rate increases as your income increases:

If you earn $90,000 in a year, for example, $11,600 of that will be taxed at 10%, the next portion ($11,601 - $47,150) will be taxed at 12%, and the remainder of your income will be taxed at 22%. 

If you have a main job alongside your OnlyFans gig, your total tax liability will be calculated using your combined income. Your W-2 job (main employment) will withhold taxes for you as normal, but you will be responsible for reporting the money you earn from OnlyFans and paying self-employment taxes. 

Self-Employment Tax 

You have to pay self-employment tax if you earn at least $400 in net income in a year on OnlyFans.

Self-employment tax is based on your profits and covers your share of Social Security and Medicare. For most people, the self-employment tax rate is 15.3% - this is the same amount you would pay in FICA tax if you were salaried. 

How to File a Tax Return 

To file a tax return you will need to: 

1. Track your income and business expenses throughout the year
2. Pay estimated quarterly taxes using the 1040-ES form
3. File a tax return using Schedule C and Schedule E forms

How to Avoid Tax on OnlyFans

You can’t legally avoid paying OnlyFans taxes. However you can be strategic about how much tax you pay. 

When you state your income as a self-employed worker, you can also declare business expenses that will be deducted from your taxable income. 

For example, if you earn $40,000 but your business costs you $15,000, you can deduct that from your total income, meaning you will only be taxed on $25,000 ($40,000 - $15,000).

However these deductions must be legitimate business expenses such as camera and lighting equipment, digital advertising tools, subscription and platform fees, and professional services like legal advisors and accountants. 

You can also deduct things like gas, internet bills, and lingerie. However it’s important that you calculate and declare what portion of these expenses are used for OnlyFans specifically (business use) rather than personal use. 

For example, if you spend $100 on gas in a week but only drive 20 miles for an OnlyFans-related purpose, you can only claim the cost of the 20 miles, not the entire $100 you spent on gas. 

Top Tips For Keeping Track of Your Expenses 

• Keep all your receipts - this includes physical and digital ones 
• Open a separate bank account for your OnlyFans business - doing this will make it easier to separate personal and business expenses 
• Create a spreadsheet - use a simple spreadsheet to track your income and expenses 

The last thing you want to do is trigger an OnlyFans IRS audit, so it’s important to be as accurate as possible when it comes to your business expenses. 

Does OnlyFans Report to the IRS?

Yes, OnlyFans reports to the IRS. OnlyFans does require your tax information so they can inform the IRS you will be paying taxes on the money they send to you. The first time you withdraw your earnings from OnlyFans, you will be instructed to fill out a W-9 form so you can provide your OnlyFans tax ID number.

If you make over $600 in a year, you will receive a 1099-NEC in the post, which details your total earnings for the year. If you make less than $600, you won’t receive this document but you will still need to report your OnlyFans income. Underreporting or ignoring income can trigger penalties or IRS audits. 

Can Employers See OnlyFans on Taxes? 

Generally, no. OnlyFans won’t appear on your W-2 or standard tax forms that your employer can access and employers won’t be notified by the IRS about your side income. 

However, if you use the same accountant for both jobs they will see your OnlyFans income and if you apply for a loan or background check that requests full tax returns, your business income might show OnlyFans earnings. 

OnlyFans Tax Doesn’t Need to Be Stressful

Although OnlyFans taxes can feel daunting, it is simple once you’ve got the hang of it. However, if you are confused or overwhelmed by tax forms, deductions, or filing returns, you can hire an accountant or use an OnlyFans management agency such as ourselves, who will handle the legal and accounting side of things for you. 

Looking to earn more on OnlyFans? Contact us today and join the top 0.1% of creators!