As a content creator, it is essential to understand the tax implications associated with your OnlyFans account.
Not only is this important for satisfying your legal obligations, but it also allows you to maximize your income and ensure that your OnlyFans income is put to best use.
In this blog post, I will discuss the importance of understanding taxes for your OnlyFans income, how taxes work, and the best ways to track down taxes for OnlyFans.
This content is intended to provide general information only. It is not meant to serve as financial, tax, legal, or other professional advice. If you wish to engage in any financial, tax, legal, or other transaction, it is essential that you seek professional advice beforehand. Your own tax, legal, and accounting advisors should be consulted before taking any action.
OnlyFans Taxes: Beginner’s Guide
If you’re just getting started in the world of taxes as an OnlyFans model, there are some important things to understand.
To begin with, it is your responsibility to pay taxes – not something that OnlyFans does for you.
You can do this yourself or hire an accountant. It is not an automatic process.
Also, OnlyFans does not draw taxes from your pay. It is critical to begin saving at least 20-30% of your earnings to cover your tax bill. Always maintain records of both offline and online receipts.
As an OnlyFans model, your taxes are considered as self-employment from a taxation point-of-view.
Consequently, it is prudent to set aside 20-30% of your earnings for taxes.
The tax code allows for deductions for a variety of expenses. If you qualify and claim them as business expenses, you may be able to recoup up to 50% of the cost!
Make sure to save each and every receipt. Possible deductions include props, lighting accessories, toys, gym fees, beauty treatments, lingerie, and hotel costs associated with filming.
How does it work?
Calculate the business versus personal use of the item. If 25% of your internet use is for OnlyFans, for example, then you can write off 25% of your internet bill as a business expense.
This goes for a phone bill, rent, and any equipment you purchase for OnlyFans.
As long as the expenditure is considered “ordinary and necessary” for the business, it is likely deductible and should be tracked in a Google Sheet.
For assistance, be sure to hire a reliable accountant.
How a good accountant can make you money
If you’re making a decent income and have a good number of subscribers, you’ll be able to make a lot of money by finding an excellent accountant.
This is mainly due to the business expense benefits associated.
Don’t worry about your background as an OnlyFans model – any reliable, professional accountant won’t care, and you don’t even need to disclose this, referring to yourself instead as a Specialized Content Creator.
The best way to locate an accountant is through any in-person connections you have, such as friends or family.
They can help you find a good, suitable accountant. If this isn’t possible, browsing through recommendations from other people in the adult business is the next best option.
Look out for an accountant who won’t judge you, one with experience with self-employed people, and one who’s familiar with the adult industry.
If you’re stuck, reach out to other models on Twitter, IG, and OF – ask for advice and hopefully they can give you some helpful ideas.
How to look for great accountant
If you’re in the US and don’t have any good recommendations from other OnlyFans models, search your state CPA directory or board of accountancy to find three or four CPA’s in your area, and start interviewing them.
Ask questions such as the fee structure for return preparation only (ie doing the books yourself); the fees for bookkeeping and preparation; and if they can provide customer referral contacts.
This way, you’ll be able to find the right accountant for you.
Do I have to hire an accountant?
You don’t need to hire an accountant, but it could be a great help if you’re dealing with the stress of filing taxes. Accountants can make managing taxes much simpler, saving you time, frustration, and potentially even money. Depending on the area in which you reside, their assistance could prove invaluable.