Understanding Your Tax Obligation as an OnlyFans Creator

Running an OnlyFans account can be a serious source of income, but with that income comes something a lot of creators don’t talk about enough: taxes. Whether you’re just starting out or pulling in five figures a month, your tax obligation as an OnlyFans creator is real. The IRS treats your content creation as a business. That means you’re responsible for tracking your income, managing your business expenses, and staying compliant with federal, state, and local tax rules.

How the IRS Sees Your OnlyFans Income

You’re Considered Self-Employed

If you receive payment through OnlyFans, you’re earning self-employment income. That means you’re not an employee, and taxes aren’t being withheld for you. You’re considered a sole proprietor in the eyes of the IRS, which comes with both responsibilities and benefits.

As a self-employed creator, you’re required to:

• Report your total income on a Schedule C form
• Pay self-employment taxes, including Social Security and Medicare
• File your tax return using the appropriate filing status

This is similar to how other small business owners operate. You’re running a business, which means tracking gross income, expenses, and profit

What Counts as Taxable Income?

Your OnlyFans income includes everything you receive from:

• Subscriptions
• Tips
• Pay-per-view content
• Bonuses and referral programs

Even if you don’t receive a 1099 form, this money still counts as taxable income. The IRS requires you to report all income earned during the tax year, regardless of whether a form was issued.

Tip: Keep a monthly log of everything you earn and spend. This will make filing your taxes much easier and more accurate.

Federal and State Tax Obligations

Federal Taxes

At the federal level, you’ll likely owe:

• Federal income taxes are based on your tax bracket
• Self-employment taxes (currently 15.3%)

Your adjusted gross income (AGI) is used to calculate how much you owe. AGI is your total income minus allowable deductions, like OnlyFans tax write-offs.

State and Local Taxes

Each state has different taxation laws. Some don’t collect income tax, while others do. You may also owe taxes to local governments depending on where you live or run your business.

Be sure to check with a local tax agency or professional to understand your responsibilities in your state.

Making Estimated Tax Payments

Since no one is withholding taxes for you, you’re expected to make estimated tax payments throughout the year, not just at tax time. The IRS expects payments in April, June, September, and January.

Failing to do this can result in a penalty and a bigger tax bill than you expected.

Quarter	Income Period	Payment Due
Q1	Jan 1 – Mar 31	April 15
Q2	Apr 1 – May 31	June 15
Q3	Jun 1 – Aug 31	Sept 15
Q4	Sep 1 – Dec 31	Jan 15

What Can You Deduct as Business Expenses?

Here’s where being self-employed can work in your favor. The IRS allows you to deduct ordinary and necessary business expenses related to running your OnlyFans business. These reduce your taxable income and lower your tax liability.

Common OnlyFans Tax Write-Offs:

• Camera, lighting, tripods, microphones
• Editing software and online tools
• Costumes, makeup, hair styling
• Props and content supplies
• Home studio space (if used regularly and exclusively)
• Phone, laptop, and accessories
• Portion of your wi-fi and utility bills
• Website hosting or domain fees
• Professional services (legal, accounting, coaching)

To qualify, expenses must be directly related to your OnlyFans business and not personal use.

Understanding Your Tax Return

When tax season rolls around, you’ll file a Form 1040 with a Schedule C to report your income and expenses. You’ll also attach a Schedule SE to calculate and pay self-employment taxes.

Depending on your filing status, income level, and deductions, you may also be eligible for certain tax credits or personal exemptions that lower your overall tax obligation.

Reminder: Always keep receipts, invoices, and statements for at least 3 years in case the IRS requests documentation.

LLC or Sole Proprietor: What’s Better?

Most creators start out as sole proprietors. It’s simple, free, and doesn’t require formal registration.

But once your OnlyFans account starts pulling in more income, you might want to form an LLC for added legal protection and potential tax benefits.

An LLC doesn’t change how you file taxes by default. It can:

• Separate your business and personal finances
• Reduce personal debt risk if legal issues arise
• Allow you to choose S-Corp status to lower payroll taxes if your income is high enough

Talk to a tax pro to determine what’s right for your business.

What Happens If You Don’t Pay Taxes?

Avoiding your tax obligation can lead to real consequences:

• Penalties and interest
• Audits
• Wage garnishment
• Tax liens

Creators who don’t pay taxes or file on time can end up owing more than their original tax bill. If you’re feeling behind, it’s better to reach out to a tax professional early.

FAQs

Do I have to pay taxes if I make under $600 on OnlyFans?

Yes. Even if OnlyFans doesn’t send you a 1099, the IRS still expects you to report all income. There is no income threshold for reporting self-employment income.

Can I deduct personal items used in my content?

You can only deduct the portion used for business. If you buy makeup you use daily and for filming, you can only write off the part tied to content creation.

What if I didn’t make estimated tax payments this year?

You may owe a penalty when you file your tax return. It’s best to catch up and start making quarterly payments moving forward.

Do I need to keep receipts for everything?

Yes. You should save digital or physical copies of receipts and statements for all business expenses. They serve as proof if the IRS asks.

Conclusion

Understanding your tax obligation as an OnlyFans creator can feel like a lot, but once you treat your account like a real business, it becomes much easier to manage. The key is to stay organized, make quarterly payments, track everything, and work with someone who actually understands the industry.

You’re not just a content creator. You’re a business owner. And that comes with responsibilities, but also real opportunities to lower your tax liability, protect your income, and keep growing.

Your path to complete financial prosperity begins now. To master the art of tax planning and transform your future financial outlook at tax time, contact The OnlyFans Accountant for a free consultation. Want to learn how to maximize deductions, track expenses like a pro, save more, and navigate tax season like a boss? Get your FREE copy of our eBook.

Need assistance or guidance with completing your OnlyFans taxes? Call us today! Our experts are ready to help you navigate your tax obligations and maximize your deductions.