Accounting and Tax
Schedule C Instructions: Avoid Mistakes on OnlyFans Taxes
If you’re an OnlyFans creator, you’re technically a self-employed individual in the eyes of the IRS. That means you need to file Schedule C (Form 1040) to report your business income and expenses. Understanding Schedule C instructions is essential to properly filing your taxes, reducing your taxable income, and avoiding IRS penalties. Since you’re responsible for tax compliance, it’s up to you to pay taxes on your earnings, report your income tax properly, and track all deductible expenses. Unlike traditional employees, OnlyFans creators don’t have taxes automatically withheld, which means you need to determine your accounting method and ensure you’re keeping accurate records throughout the tax year.
You may also be responsible for sales tax depending on your location, and if your OnlyFans earnings are significant, you might want to consider whether it makes sense to claim actual expenses or use standard deductions to lower your tax return liability. Whether you’re new to OnlyFans taxes or already familiar with self-employment tax obligations, this guide will walk you through how to file Schedule C correctly, what deductions you can claim, and how to stay compliant with IRS regulations while maximizing your tax write-offs.
What is Schedule C?
Schedule C (Form 1040) is the IRS form used by sole proprietors and small business owners to report their business income and business expenses. If you earn money on OnlyFans, you’re considered a sole proprietor unless you’ve formed an LLC or another business entity.
This form helps determine your net income (your profit after expenses) and whether you need to pay self-employment tax on your earnings.
Who Needs to File Schedule C?
- OnlyFans creators earn money from subscriptions, tips, pay-per-view content, or paid messages.
- Independent contractors provide services through online platforms.
- Small business owners who are not on a W-2 payroll.
- Gig economy workers such as freelance writers, influencers, or online coaches.
If your OnlyFans income is more than $400 per year, you must file Schedule C and pay self-employment taxes.
How to Fill Out Schedule C (Step-by-Step Instructions)
Step 1: Gather Your Information
Before filling out Schedule C, collect the following:
- Your business information: Name, business address, and Employer Identification Number (EIN) (if applicable).
- Total income earned: Your gross receipts from OnlyFans.
- Business expenses: All costs related to creating content and running your business.
- Tax forms: Any 1099-NEC forms received from OnlyFans.
- Bank statements and invoices: Proof of income and expenses.
Step 2: Report Your Business Income
The first part of Schedule C requires you to enter your gross income, which is the total amount earned before expenses.
Where to Find Your OnlyFans Earnings:
Log in to your OnlyFans account, go to “Statements,” and check your total income for the year.
| Income Type | Taxable? |
|---|---|
| Subscription Revenue | Yes |
| Tips | Yes |
| Pay-Per-View Sales | Yes |
| Promotional Gifts | Yes |
| Refunds & Chargebacks | No |
Step 3: Deduct Business Expenses
Your net profit (or net earnings) is calculated by subtracting business expenses from your gross income. These expenses help reduce the amount of taxable income, meaning you pay fewer taxes.
Common OnlyFans Tax Write-Offs
| Expense Category | Examples |
|---|---|
| Home Office Deduction | Rent, utilities, internet (business portion) |
| Office Supplies | Camera, lighting, tripod, backdrops |
| Marketing & Advertising | Social media ads, promotions |
| Subscriptions & Software | Editing tools, Canva, website hosting |
| Travel & Business Trips | Flights, hotels, rideshare expenses |
| Costumes & Props | Wigs, outfits, accessories |
| Phone & Internet | The business portion of your bill |
Two Ways to Deduct Business Expenses:
- Claim actual expenses (track everything individually).
- Use the simplified method (for home office deductions, etc.).
Step 4: Calculate Net Profit
After listing all related expenses, subtract them from your total income. This gives you your net profit, which is taxable.
- If your business made a profit, you report income and pay self-employment tax.
- If you had a loss, you could deduct it against other taxable income.
Understanding Self-Employment Tax & Estimated Payments
Unlike traditional employees, OnlyFans creators do not have taxes withheld from their earnings. You are responsible for:
- Paying self-employment tax (15.3%) to cover Social Security & Medicare.
- Filing quarterly taxes if you expect to owe more than $1,000 in taxes.
Key Tax Deadlines:
| Quarter | Due Date |
|---|---|
| Q1 (Jan – Mar) | April 15 |
| Q2 (Apr – Jun) | June 15 |
| Q3 (Jul – Sep) | September 15 |
| Q4 (Oct – Dec) | January 15 |
Avoiding Common Tax Mistakes
- Not reporting all income – The IRS can track OnlyFans payments.
- Mixing personal & business finances – Keep a separate business account.
- Forgetting quarterly taxes – Avoid penalties by paying on time.
- Not tracking expenses – Use accounting software to log everything.
FAQs
Do I need to file Schedule C if I made less than $400?
Yes, even if your net profit is below $400, you must still report your income to the IRS. However, if your total self-employment income is less than $400 after deductions, you won’t owe self-employment tax. That said, failing to report your earnings, no matter how small, could result in IRS penalties if they discover unreported income later.
Can I deduct OnlyFans subscription fees?
No, personal OnlyFans subscriptions are not tax-deductible, since they are considered personal entertainment expenses. However, if you pay for collaborations, business-related research, or educational content to improve your OnlyFans business, those may qualify as deductible expenses. It’s important to keep records of any subscriptions you believe are business-related in case of an audit.
Do I need an LLC to file Schedule C?
No, Schedule C is for sole proprietors, meaning you don’t need an LLC to file it. Even if you do form an LLC, you will still file Schedule C unless you elect to be taxed differently, such as an S corporation. An LLC provides legal protection, but it does not change how you file your self-employment taxes unless you make a special tax election.
Can I deduct beauty and personal care expenses?
Beauty and personal care expenses, such as makeup, haircuts, and skincare, are generally considered personal expenses and are not deductible. However, if a beauty-related purchase is used exclusively for business purposes, such as wigs, special-effect makeup, or costumes worn only for content creation, they may qualify as a business deduction. The key is to keep receipts and document how each item is used strictly for business, as the IRS tends to scrutinize these types of deductions.
Conclusion
Filing Schedule C as an OnlyFans creator is essential for tax compliance, ensuring that you pay taxes correctly and report your income tax accurately. Since you operate as a self-employed individual, choosing the right accounting method, whether cash-based or accrual-based, helps you track earnings and claim actual expenses to lower your taxable income. Your tax return should include all eligible deductions, reducing the amount you owe while keeping your finances in order.
Depending on your location, you may also need to consider sales tax if you sell merchandise or offer additional services outside the platform. Staying organized throughout the tax year, making estimated tax payments on time, and keeping detailed financial records will help you avoid penalties and unexpected tax bills. While handling taxes on your own is possible, working with a professional can provide clarity and ensure you meet all IRS requirements without stress.
Your path to complete financial prosperity begins now. To master the art of tax planning and transform your future financial outlook at tax time, contact The OnlyFans Accountant for a free consultation. Want to learn how to maximize deductions, track expenses like a pro, save more, and navigate tax season like a boss? Get your FREE copy of our eBook.
Need assistance or guidance with completing your OnlyFans taxes? Call us today! Our experts are ready to help you navigate your tax obligations and maximize your deductions.