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You can make a living if you have a talent for creating content in writing, videography, photography, design, or social media. And if you’re making money as a content creator, you should keep records of your company expenditures to deduct those costs from your taxable income and retain more of what you earn.
You must include all revenue earned through OnlyFans in the creator’s annual tax filing. Since your earnings from OnlyFans qualify as business income, you can use certain tax deductions to lower the amount of tax you owe.
Common Tax-Write Offs for OnlyFans Creators
- OnlyFans transaction fees: The OnlyFans fees taken out of your pay can be deducted from your taxable income
- Gear and equipment: Any gear or equipment you use for your job is tax-deductible. Among these items are lighting equipment, sound equipment, and camera lenses.
- Phone: Phone costs can be partially deducted if incurred while managing social media accounts or responding to comments on videos or podcasts. Phone fees are also included
- Rent: Part of your monthly mortgage or rent payment may be tax deductible, if you rent rather than buy a home
- Property taxes: Property taxes can be pretty pricey, depending on where you live. The good news is that, if you work from home, you can deduct some of these expenses from your income
- Utilities: Utility expenses qualify for a tax deduction, so take note of your water and electricity bills
- Internet: Your ISP fees are tax-deductible to the extent that they are directly related to running your OnlyFans business
- Home office expenses: You can deduct a percentage of your property taxes, heating and cooling costs, energy costs, insurance premiums, repairs, and mortgage interest payments if you film in your home, have a dedicated studio space, or use your home as a workspace to edit and post movies
- Marketing: The costs of paid ads can be deducted from your taxes. You can also write off the cost of prizes you gave or won in a contest
Inventory costs: If you have a webstore or sell merch at conventions, you can deduct this from your income. You can also reduce the cost of self-storage if you need it because you can’t keep your stock at home
- Shipping and postage: Expenses related to sending mail can be written off, including the cost of sending out a contest prize or making a cold call to potential clients
- Software: When purchasing business-related software, you can claim a tax deduction. You can take tax deductions for the costs associated with licensing software and other media such as Adobe Creative Suite, stock pictures, and stock music
Electronics (hard drives, monitors, etc.): Buying accessories, like an extra monitor or external hard drive, can add up quickly. The good news is that you can deduct every one of these expenses
- Website domain expenses: Potential clients learn about you through your website, so it should work properly and look good. Hosting fees, domain costs, and professional web design costs are all good things you can write off
- Professional services: If you have a YouTube channel, did you employ someone to help you start it? Perhaps you hired a consultant or coach to help your company expand. You can write off the cost of hiring consultants if they help you make good choices for your company
- Events: These days, content producers can choose from various conventions and gatherings according to their interests. The costs associated with such conferences may be high, but they may be deducted from taxable income
- Video Editor Salary: A video editor’s remuneration is tax deductible if you use their services
- Bank fees: Bank fees are irritating at times. Fortunately, they are also tax-deductible
- Other payment processing fees: Whether you work with clients directly or make money from your content creation work through ads or sponsors, you will probably use some kind of online payment processor to get your money quickly. This ease of use costs money, but it’s also a tax write-off
Requirements for Documentation
To offset your earnings from OnlyFans, you’ll need proof of your expenditures in invoices, receipts, and other official documents. You need to be able to back up your spending claims if the IRS or another tax agency ever comes knocking. So remember to keep all your receipts for every transaction you make!
Need More Help With Your Taxes?
FShad CPA Professional Corporation will guide you through the tax preparation process. Suitable for sole proprietors and modest enterprises. Talk to us today at 844-982-4700.
This publication is produced by FShad CPA Professional Corporation as an information service to clients and friends of the firm, and is not intended to substitute for competent professional advice. No action should be initiated without consulting your professional advisors. Your use of this document is at your own risk.