Sharing exclusive content with subscribers became a worldwide business model for creative professionals thanks to the global expansion of OnlyFans.
Yet, with fresh opportunities comes the tax responsibility of handling them correctly. In a nutshell, yes. We will be explaining how throughout this post. The income generated via OnlyFans is taxable in accordance with the existing laws in the US.
The IRS views such revenues as self-employment. So, they are subject to federal and most likely state taxes. In addition, OnlyFans does not withhold taxes from your payments. Therefore, it is advisable to set aside financial resources specifically for tax payments. This form is sent to both you and the IRS. However, all your income should still be reported in order to prevent penalty payments, interest fees or possible audits.
Moreover, the IRS uses additional methods to locate unreported earnings. For OnlyFans professionals, the tax filing responsibilities are parallel to those of other self-employed individuals:. OnlyFans content creators are independent contractors.
So, they manage their tax obligations on their own. The main tax responsibilities can be outlined as follows:. The IRS allows self-employed individuals to claim legitimate business expenses. Within this context, OnlyFans content creators might use their business-related expenses as the most typical deductions presented below:. As it is explained above, OnlyFans has no employer status for content creators and the platform does not withhold taxes.
