IRS Form 8995-A Explained for OnlyFans Creators: How to Save More and Stay Compliant

Running a successful OnlyFans account means more than posting exclusive content. It also means understanding your tax obligations and handling your OnlyFans taxes like a true business owner. As a self-employed creator, you are responsible for tracking your income, paying self-employment taxes, and filing the right forms to stay compliant.

One of the most important yet confusing forms for creators earning significant income is IRS Form 8995-A. This guide breaks it down clearly so you can understand how it works, whether you qualify for the qualified business income deduction, and how you can use it to reduce your tax bill while staying compliant.

What Is IRS Form 8995-A and Why It Matters for OnlyFans Creators

IRS Form 8995-A helps you calculate your qualified business income deduction or QBI deduction. It is a valuable tax break that allows eligible self-employed individuals, including OnlyFans creators, to deduct up to 20 percent of their qualified business income from their taxable income. If you are earning money through self-employment income from your OnlyFans account, you likely qualify for this deduction. However, some creators will use the simplified Form 8995, while higher-earning creators must use Form 8995-A instead.

Form 8995 is for simple returns and smaller incomes. Form 8995-A is required when you exceed certain income thresholds or have more complex business operations such as multiple revenue streams, aggregation, or qualified property. On the other hand, if your total income exceeds $191,950 as a single filer or $383,900 if married filing jointly for the 2024 tax year, you must file Form 8995-A.

Who Qualifies for the Qualified Business Income Deduction

The qualified business income deduction is available to self-employed individuals, sole proprietorships, and limited liability companies (LLCs) that report earnings on Schedule C.

Most OnlyFans creators are independent contractors, which means they are considered self-employed and pay their own income tax and self-employment tax. To qualify for the deduction, your business income must come from regular operations intended to make a profit.

You may qualify if:

• You file your tax return as a sole proprietor or through an LLC.
• You earn self-employment income from your OnlyFans content.
• You have net earnings after deducting your business expenses.

The IRS considers your OnlyFans activity a legitimate service trade if it generates consistent profit. However, if your income exceeds the threshold, you may face additional rules under the specified service trade category, which limits the deduction for some entertainment-based professions.

Form 8995 vs. Form 8995-A: Which One Should You Use

Form	When to Use	Ideal For
Form 8995	When your taxable income is under the threshold and you have no complex income sources	Smaller creators or those new to self-employment
Form 8995-A	When your taxable income exceeds the threshold or you have multiple sources of income	Higher-earning creators or LLC owners with more complex returns

If you have a mix of income streams such as OnlyFans subscriptions, affiliate links, brand sponsorships, and merchandise sales, you will likely need Form 8995-A.

Breaking Down IRS Form 8995-A (Part by Part)

IRS Form 8995-A may look intimidating at first glance, but it’s simply a detailed worksheet that helps you figure out how much of your qualified business income qualifies for the 20 percent deduction. Each section focuses on a different step of the calculation. Understanding what goes into each part makes it easier to complete accurately and maximize your potential tax savings as a self-employed OnlyFans creator.

Part I: Trade, Business, or Aggregation Information

This section lists each of your business operations. For an OnlyFans creator, this might include your OnlyFans content creation, affiliate marketing, and any merchandise business. You will also provide aggregation information if you are combining multiple business activities for your deduction.

Part II: Determine Your Qualified Business Income

This section helps calculate your qualified business income for each operation. You will start with your net profit from Schedule C after deducting business expenses like cameras, lighting, editing software, and software subscriptions.

Part III: Determine Your Qualified Business Income Deduction

Here you apply the calculation that factors in wages, qualified property, and UBIA (Unadjusted Basis Immediately After Acquisition). This formula determines how much of your business income you can deduct.

Part IV: Aggregation of Business Operations

If you operate more than one business, you can choose to combine them under certain IRS conditions. This helps offset profits and losses across multiple income streams for a more accurate deduction.

Understanding Key Tax Terms

To make the process easier, here are simplified explanations for common terms used on the form:

• Qualified Business Income (QBI): Your profit from eligible U.S. businesses after expenses.
• Specified Service Trade or Business (SSTB): Professions like entertainment, law, or health that may have deduction limits once you reach certain income levels.
• UBIA: The adjusted value of property used in your business that still qualifies for the QBI calculation.
• Aggregation: Combining multiple business activities to calculate one deduction.
• Example: How to Calculate Your QBI Deduction
  

  Description	Amount
  OnlyFans income	$85,000
  Business expenses (equipment, subscriptions, promotion)	$20,000
  Net profit (Qualified Business Income)	$65,000
  20% QBI deduction	$13,000
  New taxable income reduction	$13,000

  This example shows how the QBI deduction directly reduces your taxable income by $13,000. That lowers both your income taxes and self-employment taxes. If your income exceeds the IRS thresholds, the deduction becomes more complex due to wage and property limitations.

Common Mistakes Creators Make with Form 8995-A

Many creators lose thousands each year by making avoidable errors. Here are a few of the most common ones:

1. Combining personal and business expenses. Only deduct costs used exclusively for your business, not personal items.
2. Missing quarterly estimated taxes. Self-employed creators must pay quarterly to stay current with income taxes and self-employment taxes.
3. Ignoring self-employment tax obligations. You are responsible for the full portion of Social Security and Medicare taxes, unlike employees.
4. Not tracking deductions. Use accounting software to record expenses, mileage, and receipts throughout the tax year.
5. Skipping the home office deduction. If you film or manage your account from a dedicated area at home, claim a home office deduction.

OnlyFans and the Specified Service Trade Rule

The IRS may classify certain entertainment-related work as a specified service trade, which can reduce or eliminate the QBI deduction if your income is too high.

For OnlyFans creators, this depends on how your business earns money. If your income mainly comes from your personal image or direct performance, it may count as a service trade. But if you sell digital content, subscriptions, or collaborations, you may still qualify for a partial deduction.

Understanding this distinction helps you plan ahead and manage your tax obligations effectively.

Maximize Deductions and Reduce Your Tax Bill

The QBI deduction is just one way to save on OnlyFans taxes. You can further lower your tax bill by claiming legitimate tax write-offs.

Here are common deductible business expenses for OnlyFans creators:

• Equipment such as cameras, microphones, and lighting.
• Editing software and software subscriptions used for your content.
• Internet, phone, and marketing costs.
• Props, wardrobe, and creative materials used solely for business.
• Accounting or legal fees.
• Rent and utilities if you claim a home office deduction.

Keep detailed records of every deduction and separate personal expenses from business expenses. This keeps your tax return accurate and helps you stay audit-ready.

When to Form an LLC or S Corporation

Once your OnlyFans income grows, forming a limited liability company (LLC) can protect your personal assets. Many creators later choose to elect S Corporation status, which may reduce self-employment taxes by allowing a split between salary and dividends.

Your tax bracket and filing method affect how the qualified business income deduction applies to your situation. Always consult a tax professional before making this change so you understand the difference between corporate taxes, personal taxes, and self-employment income.

Paying Taxes as an OnlyFans Creator

OnlyFans does not withhold taxes, which means you must handle all payments yourself.

• File your quarterly estimated taxes to avoid penalties.
• Include all income from your OnlyFans account, brand deals, and affiliates when reporting total income.
• Keep every Form 1099-NEC and document from the platforms you earn through.
• Report your business use of equipment and expenses accurately on Schedule C.

Missing quarterly taxes can create a large tax bill at the end of the year. Paying small amounts quarterly keeps you compliant and less stressed during tax season.

FAQs

What is the IRS Form 8995 used for?

Form 8995 is the simplified version of the qualified business income deduction form used by taxpayers with straightforward returns. You can use it if your taxable income is below the IRS threshold and you have no complex business operations. It’s a quicker way to calculate your deduction compared to Form 8995-A, which requires more detailed information.

How do I know if I qualify for a qualified business income deduction?

You qualify for the qualified business income deduction if you earn business income as a self-employed individual or sole proprietor. This means you report your income on Schedule C and pay self-employment taxes. If your OnlyFans business earns profit consistently and isn’t treated as a hobby, you likely qualify.

What is the threshold for Form 8995-A?

For 2024, the IRS threshold is $191,950 for single filers and $383,900 for joint filers. If your taxable income goes above this limit, you must file Form 8995-A instead of the simplified version. These limits may adjust each tax year, so always check the latest IRS guidance before filing.

Who is not eligible for the qualified business income deduction?

You are not eligible for the deduction if you work as an employee or treat your OnlyFans activity as a hobby. Some high earners in specified service trades like performers and entertainers may lose eligibility when income passes the phaseout range. The IRS focuses on self-employed individuals with legitimate business income and clear documentation of expenses.

Conclusion

Understanding IRS Form 8995-A is key to managing your OnlyFans taxes with confidence. This form allows you to claim the qualified business income deduction, one of the most powerful tools for reducing your income taxes as a self-employed creator. By keeping accurate records, separating business expenses from personal expenses, and staying up to date with quarterly estimated taxes, you can make tax season easier and more profitable.

At The OnlyFans Accountant, we specialize in maximizing tax refunds for OnlyFans creators. Let us help you handle your tax obligations, track business expenses, and make sure you keep more of what you earn. Contact us today to schedule your free consultation and start optimizing your tax strategy for 2025.