Disclaimer: The following guide is general information on paying taxes on OnlyFans. We are not tax experts, accountants, or the like. If you have any tax-related questions in your jurisdiction, contact a tax preparer or someone who handles the taxes in your country (if you live outside of the US, Canada, etc.)
While a lot of content creators that are earning a good amount of money on OnlyFans, there are some things that they tend to overlook unintentionally. One of those is taxes. We’ll be talking about OnlyFans and the taxes you may need to pay for.
Just so we’re clear: we are not giving you expert tax advice (as stated in our disclaimer). This is basic general information that we’ll be happy to provide you so you can be able to properly file your taxes if you make enough money based on your jurisdiction’s requirements. Plus, if you are starting out, you should consider reading on in the event if you see OnlyFans as a way to make a side income.
Do I really have to pay taxes?
The short answer: yes. However, this will depend on some factors. There are different parts of the world where you need to pay taxes if you earn a specific amount of amount.
After all, income is taxable regardless if you make it yourself or if you work a regular job. That’s just the way it goes no matter where you are in the world. Call it a “necessary evil” if you must.
After all, there are three things that are certain in life: death, taxes, and maybe success on OnlyFans if you follow the tips and tricks on how you can be successful.
OnlyFans and Taxes
What you need to understand is that OnlyFans has content creators who reside in various parts of the world. Therefore, the tax laws will differ from one country to the next. Do you need to file as “self-employed” in your jurisdiction or is it something completely different?
We’ll be taking a look at some of the countries and what you need to do in terms of filing taxes if you are a resident. In this section, we’ll focus on the US, Canada, the UK, and Australia. Pay very close attention to this information as it is vital:
In the United States, anyone who makes a yearly income of $600 is subject to paying taxes by filing a 1099 form. OnlyFans will issue you these around tax time. These forms are provided to those who have earned self-employment income.
When you earn self-employment income, it is important to start thinking like a business. As a business owner, you will need to file a tax return, but you now have the flexibility to choose how you want to get taxed, there are several taxing structures (Sole-Proprietor, Partnership, S-Corp and C-Corp) to consider that may offer better benefits and tax saving opportunities to help you keep more of what you’ve earned. (Please consult with a CPA)
As a business owner you are allowed take ordinary and necessary expenses, such as new equipment, software/app subscriptions, prize/giveaways, costumes, and many more that will help lower the taxes you pay. A good way to do this is by opening up a separate bank account for your OnlyFans income and expenses, it not only helps with staying organized, but it provides strong documentation against possible audits. However, you will need to keep a copy of all your receipts for support.
Also, you may need to set aside some money so it goes towards the tax bill later on. In other words, put money away in a separate bank account and don’t touch it. A good rule of thumb is to save 30% of your total earnings.
It’s essential to cover your bases, especially when it comes to taxes. Not to mention, it’s good to have some money on hand in case you face some financial “surprises”. Better to be prepared than never at all.
Unlike the United States, the Canadian Revenue Service asks you to file for self-employment taxes regardless of how much money you make on OnlyFans. For example, if you make anywhere less than $47,630 in self-employed income, you are subject to paying the 15% tax rate.
Keep in mind, the more money you make as an independent contractor of the like, the higher the rate is going to be. If you are a resident of Canada, there is a tax chart that you can refer to if you are planning to earn income from OnlyFans.
Also, Canadian residents who file self-employment taxes must be aware of the following forms: Form T1, Form T2125, and a T4A slip. Also, you can still keep track of your expenses to ensure that you qualify for certain deductions. Once again, let us stress that it is important to keep track and file any receipts that indicate either personal or business expenses.
United Kingdom (UK)
If you are an OnlyFans content creator who resides in the United Kingdom, you’ll need to earn at least £12,500 before you need to pay any taxes. Self-employed persons in the UK will pay a rate of 20 percent if you earn between the minimum amount and £50,000.
If you make £50,000, that rate will double to 40 percent while income over £150,000 will need to pay at a rate of 45 percent.
In the United Kingdom, you can claim for certain tax deductions including allowable expenses. But if you are filing income from your OnlyFans, it can get fairly tricky. While a freelancer could qualify for certain deductions, it may not mean the same will apply to you.
In any event, it’s important to relay any questions you may have to any UK tax experts or the Department of Inland Revenue (the UK equivalent of the IRS for those who live in the US).
In Australia, those who make money on OnlyFans may need to pay income tax even though they are considered as “self-employed”. The good news is that if you make less than $18,200 (AUD) in a tax year, then you won’t need to pay the income tax.
However, if you make $18,201 (AUD) or more, you will need to pay 19 cents on each dollar over that amount. Please note that you may need to pay a GST if you make $75,000 (AUD) or more a year. The Australian Taxation Office may also suggest that you file your taxes every quarter.
As always, you may also qualify for tax deductions. This can be determined by the ATO. If you have any questions, they may be able to help you out.
OnlyFans Tax Tips
While we are doing our best not to give you tax advice since we’re not experts, we can still give you tips that can help make things a bit more bearable. Here’s what you need to keep in mind:
1. Open a separate business bank account
Opening a separate bank account will help keep your OnlyFans income and expenses separate. Do not do business transactions in your personal account and vice versa. We also recommend not using your personal credit cards for business transactions. Keeping good records will help keep you’re your taxes lower.
2. Keep money off to the side
As we’ve mentioned earlier, you may need to set aside a percentage of money in order to cover your tax bill. This can mean opening a separate savings account. Add more money as you receive your earnings.
The key here is to not touch this money until you absolutely need it to pay off any tax bills or expenses. This will also lessen the blow that comes with the “surprise” financial situations that you may face. You’ll be more prepared to deal with it than most people who are content creators on OnlyFans or who are self-employed through another gig.
3. Don’t be afraid to ask questions
Nine times out of ten, there are many self-employed individuals that will feel like they are stuck when it comes to taxes. Most of them are transitioning from the typical 9-to-5 life that required W2 forms and 1040s. So it can be a bit of a shell shock.
While OnlyFans should not be considered a source of primary income, it is still taxable as self-employed income. So it would be wise to do your research first if you wish. Alternatively, you can consider speaking to a tax expert who will provide you with the necessary advice on how to go about filing taxes, tax planning and long-term wealth strategies.
4. Be aware that if you earn more, you pay more
Anyone who is not a tax expert might figure this out already. The more money you make, there’s a good chance that you’ll pay more in taxes. This is common in most countries.
However, don’t let this discourage you from making more money on OnlyFans. You can continue to sell content, subscriptions, and suggest tips as if it were just a regular day. After all, you’re just earning income for the sake of having more money on hand, right?
5. Don’t worry about being knowledgable about tax laws
Whether you are self-employed as a freelancer or earning money as a content creator on OnlyFans, you don’t need to be a tax expert or keep track of the tax laws. That’s why such experts in that area exist (like #CPAguy). They are there when you need them and can be a phone call or email away.
You can also check out the various forums on sites like Intuit (Turbo Tax) since there might be tax experts who can answer questions there. But do take such advice with a grain of salt.
Frequently Asked Questions
The following are frequently asked questions regarding OnlyFans and taxes. It’s important to note the answers given so you have an understanding of how the process works. These are the questions:
Will OnlyFans show up on my taxes?
On tax forms, you are required to identify what your occupation is. You don’t need to specifically state OnlyFans as your source of income. You may identify yourself as a content creator or something similar as your occupation.
How does OnlyFans work with taxes?
This will depend on your jurisdiction. For example, if you reside in the United States and make $600 in a tax year, that is considered taxable income. OnlyFans will send you a 1099 form that you will need when you file your taxes.
Outside of the United States, OnlyFans may provide the appropriate documents you need for filing your taxes if necessary.
Does OnlyFans provide you with a W2?
No. Because the income is earned yourself, you will not be given a W2 form since it’s limited to employers. OnlyFans is not an employer and therefore is not obligated to procure a W2 form for total income.
How much does the average person make on OnlyFans?
On average, content creators on OnlyFans make $3,000 a month. However, the earnings will vary from one content creator to the next. If you want to make more money on OnlyFans, it’s as simple as growing your following and selling more content.
How much should I charge on OnlyFans?
That’s entirely up to you. Think of a reasonable price that your subscribers will be happy to pay. Keep in mind that if you pay a premium price, at least one to five percent of your followers will become paid subscribers.
For example, if you charge $14.99 a month for subscriptions, you could earn anywhere between $1500 to $8000+. Be sure to notify your subscribers ahead of time if you are planning on upping your prices.
If you are planning on earning income on OnlyFans, it’s good to be aware of the fact that you need to pay taxes. While it might be one of the common “cons” of earning money, at least OnlyFans will be able to help you out by providing the right documents when tax time rolls around. But it will depend on where you live in the world.
But don’t let taxes discourage you from earning money on OnlyFans. You can create content and keep your fans happy and still keep a lot of money that you earn from subscriptions, tips, and more.