In the United States, all income is taxable unless it is specifically exempted by law. This includes income you earn from OnlyFans. As a creator on OnlyFans, you are responsible for reporting and paying taxes on the income you earn from the platform.
ANSWER: Yes, you do have to pay taxes on your OnlyFans income. It is considered self-employment income regardless of whether you have a normal job or not.
When you receive income from OnlyFans, it is considered taxable income and must be reported on your tax return. The amount of tax you owe will depend on your tax bracket, which is determined by your income and filing status.
For example, if you are in the 22% tax bracket and earn $10,000 from OnlyFans in a year, you will owe $2,200 in federal income tax (not taking into account exemptions and deductions).
Earnings from OnlyFans are considered to be self-employment income, so even if you have a normal job, this is essentially a side business as far as the IRS is concerned.
In addition to federal income tax, you may also be required to pay state and local taxes on your OnlyFans income, depending on where you live. Some states have no state income tax (Florida, Nevada, Texas, among others), while others have relatively high rates. You will need to check the tax laws in your state to determine your state and local tax obligations.
It’s important to keep accurate records of your OnlyFans income and expenses. You may be able to claim deductions for certain expenses you incur in connection with your OnlyFans activity, such as the cost of props, costumes, and other supplies. These deductions can help lower the amount of tax you will owe.
If you pay for any ads or shout-outs to promote your OnlyFans, you can also write the cost of those off your tax bill. Generally, an expense taken to directly support the operation of your OnlyFans account is deductible and will reduce your final tax bill.
DISCLAIMER: Buttler is no tax lawyer, so make sure to consult a competent accountant before making any tax filing decisions!