Why OnlyFans Creators May Need to File State Tax Only

As tax season approaches, many OnlyFans creators are preparing to organize their earnings, file returns, and stay compliant. For creators still getting used to managing their own finances, understanding the difference between federal and state tax filing can be confusing. In 2024, some changes in tax laws and income thresholds could mean that a few creators might only need to file state tax only.

This guide explains what that means, why it matters, and how to determine if it applies to you. You’ll learn when filing a state return without a federal return makes sense, how state-specific rules come into play, and what steps you can take to stay organized and avoid penalties.

Understanding Your Tax Filing Requirements

Before diving into specifics, let’s clarify the basics. As an OnlyFans creator, you’re responsible for managing both your state income taxes and federal taxes. The federal return is filed with the IRS and generally covers your overall income, including any earnings from your OnlyFans account. Your state income tax return, on the other hand, is filed with your resident state and addresses income earned within that state. In some cases, you may only need to file state tax only, depending on your earnings and state-specific regulations.

However, recent changes have made it necessary to consider whether you might need to file a state or federal tax return or only in certain situations. Let’s break down why this might be relevant for you in 2024.

Why File State Taxes Only?

In 2024, some OnlyFans creators may find themselves needing to file state tax only due to a combination of factors, including changes in state tax laws and the nature of their income. Here’s a detailed look at why this might be the case:

Changes in Federal Tax Regulations

Recent updates to federal tax laws may influence how and when you need to file. For example, the IRS has adjusted thresholds and rules that could make it simpler for creators with specific income levels to focus on state taxes if they don’t meet the federal filing requirements.

State-Specific Tax Laws

Some states have unique tax regulations that could affect your filing needs. For instance, states like New Hampshire don’t levy a personal income tax, which means creators residing there might need to file state tax only if they have other types of income, like rental income or interest income, that might be taxable.

Income Thresholds

If your earnings fall below certain thresholds, you might not need to file a federal return. However, you might still need to file state taxes depending on your state’s rules and the income you’ve earned.

Multi-State Earnings

If you earn income in more than one state, you may need to file in each state where you’ve generated revenue. However, if your primary state of residence has a tax agreement with other states, you might need to file state tax only in your resident state. Understanding the details of these agreements is crucial.

Key Factors to Consider

To determine whether you should file state taxes only, consider the following factors:

• Your Resident State: This is the state where you live most of the year and where you generally have tax obligations. In some cases, you may need to file state tax only in your resident state, as filing requirements can vary significantly from state to state.
• Earnings and Income Types: Different types of income, such as earned income from your OnlyFans account, rental income, or interest income, may have different tax implications.
• Federal Filing Status: If your income is low enough to exempt you from filing a federal return, you may still need to file state tax only, depending on state-specific laws.

Tips for Managing Your Tax Filing

Here are some practical tips to help you manage and complete your tax filing efficiently:

• Keep Detailed Records: Track all sources of income, including earnings from OnlyFans, rental income, and any other sources. This will help you accurately report your income, especially if you need to file state tax only, and claim any eligible deductions or credits.
• Use Reliable Tax Software: Invest in a good tax preparation program that can handle both federal and state returns. Many programs offer options to e-file your returns and can guide you through the process.
• Consult a Tax Professional: If your situation is complex, such as earning income in multiple states or having various revenue sources, consulting with a tax professional can provide valuable guidance, especially if you need to file state tax only, and ensure you meet all your tax obligations.
• Stay Informed: Tax laws can change, so it’s important to stay up-to-date with any new regulations or requirements that may affect your filing.

FAQ

Do I need to file a federal tax return even if I only earn income from OnlyFans?

If your income from OnlyFans is below the IRS filing threshold, you might not need to file a federal return. However, you should check the specific threshold amounts and ensure you meet all requirements. Even if you don’t need to file federally, you may still need to file state tax only, depending on your state’s tax obligations.

Can I file state income taxes only online?

Yes, many states offer e-filing options for state tax returns. This can be a convenient way to submit your state return. Ensure you use a reliable program or service to e-file your state tax only accurately.

What if I live in New Hampshire?

New Hampshire does not have a personal income tax, so you generally won’t need to file state tax only unless you have other taxable income, such as rental income or interest income. However, you are still required to report your federal income, including OnlyFans income, and pay any self-employment taxes owed to the IRS. Keeping clear records of your business income and expenses ensures you stay compliant even if your state doesn’t tax personal earnings.

What should I do if I earn income in more than one state?

If you earn income in more than one state, you might need to file state returns in each state where you’ve earned money. However, some states have agreements that help taxpayers avoid double taxation. Check your state’s specific rules and agreements to determine if you need to file state tax only in your resident state or in multiple states.

Conclusion

Navigating taxes can be challenging, especially if you’re managing income from platforms like OnlyFans. In 2024, some creators may find that they need to file state tax only due to changes in tax laws and income thresholds. By understanding your resident state’s tax rules, keeping thorough records, and utilizing reliable tax software with free or professional advice, you can simplify your tax filing process and ensure you meet all your obligations. If you’re ever unsure about your tax situation, don’t hesitate to seek help from a tax professional who understands the unique needs of OnlyFans creators. Being informed and prepared will help you approach your taxes with confidence and ease, especially if you need to file state tax only.

At The OnlyFans Accountant, we help creators simplify state and federal tax filing especially when rules and thresholds change. If you’re unsure whether you need to file state tax only or want help managing your OnlyFans income across multiple states, we’re here to guide you. Contact us today to schedule a free consultation and learn how to stay compliant while maximizing your deductions this tax season.