What Is Form 8995 on Tax Returns? Must-Know Tips for OnlyFans

If you’re an OnlyFans creator or any small business owner, understanding tax forms can feel overwhelming. One form that often confuses creators is Form 8995. Knowing what is form 8995 on tax returns, how it works, and why it matters can save you a significant amount of money, reduce your taxable income, and help you manage your OnlyFans taxes efficiently. This form is specifically designed to calculate the Qualified Business Income deduction, which allows eligible self-employed individuals and creators to deduct up to 20% of their net qualified business income from income tax.

In this guide, we break down everything you need to know about what is form 8995 on tax returns, including who qualifies, how to calculate your pass-through deduction, and how to account for business income, self-employment income, and deductible business expenses. We’ll also cover common mistakes to avoid, tips to maximize tax savings, and practical strategies to stay organized so you can accurately report your OnlyFans income and pay the correct amount of taxes each tax year.

What Is Form 8995?

Form 8995 is the IRS form used to calculate the Qualified Business Income (QBI) deduction. The QBI deduction allows eligible small business owners, independent contractors, and self-employed individuals to deduct up to 20% of their qualified business income from their taxable income.

For OnlyFans creators, this form is crucial because your OnlyFans income is considered self-employment income, which may qualify for this deduction. Filing Form 8995 correctly can reduce your taxable income, lower your tax bill, and increase your overall tax savings.

Key Facts About Form 8995

• Applies to sole proprietorships, partnerships, and S corporations.
• Works for both single filers and married filing jointly.
• Helps calculate net qualified business income and the pass-through deduction.
• Simplifies claiming the Qualified Business Income Deduction compared to Form 8995-A, which is more complex.

Why Form 8995 Matters for OnlyFans Creators

Most creators focus on producing content and growing their OnlyFans account, but understanding Form 8995 can help reduce your taxable income, maximize tax savings, and keep your OnlyFans taxes accurate.

Reduces Your Taxable Income

Form 8995 lets you lower your taxable income by claiming the Qualified Business Income deduction. For example, if your OnlyFans income is $60,000, you could deduct up to 20% of your net qualified business income, including business expenses like editing software or home office costs. This directly reduces your income tax and keeps your self-employment taxes more manageable.

Helps With Quarterly Estimated Taxes

Paying quarterly estimated taxes is essential for self-employed creators. Accurately completing Form 8995 ensures your QBI deduction is factored in, helping you avoid overpaying or underpaying self-employment income taxes. This keeps your tax bill predictable throughout the year.

Prevents Errors That Trigger IRS Audits

Filing mistakes, like mixing personal expenses with business expenses, can trigger IRS audits. Form 8995 provides a clear framework to calculate your net qualified business income, ensuring your OnlyFans income and deductions are reported correctly, which reduces the risk of penalties.

Maximizes Legitimate Tax Write-Offs

Many creators miss deductions they qualify for, like home office, editing software, and business use of devices. Including these in your net qualified business income on Form 8995 ensures you claim all eligible tax write-offs, lowering your taxable income and boosting overall tax savings.

Who Is Eligible to Use Form 8995?

Eligibility is based on the type of income and filing status. Generally, you qualify if you are:

• A self-employed individual or sole proprietorship.
• A partner in a pass-through entity (like a partnership or S-corp).
• A creator reporting income on Schedule C.
• Married or single filers within the income threshold: $191,950 for single filers, $383,900 for married filing jointly (2022 thresholds; these numbers adjust annually).

Certain types of income, like C corporation earnings, do not qualify.

How to Complete Form 8995: Step-by-Step

Filing this form may seem complicated, but breaking it down helps.

Step 1: Gather Your Documents

• Previous year’s tax return
• OnlyFans income statements
• Business expenses receipts
• Adjusted gross income (AGI) from your tax return

Step 2: Enter Your Business Information

Form 8995 asks for basic information about your business, including:

• Business name
• Employer Identification Number (EIN) or taxpayer identification number
• Type of business (sole proprietorship, partnership, S-corp)
• Qualified business income

Step 3: Calculate Qualified Business Income

You’ll need to determine your net qualified business income. This is your OnlyFans income minus allowable business expenses.

Item	Example	Notes
OnlyFans revenue	$60,000	Total income from your OnlyFans account
Business expenses	$10,000	Editing software, subscriptions, home office, marketing
Net QBI	$50,000	Qualified Business Income eligible for deduction

Step 4: Apply the QBI Deduction

The form calculates the pass-through deduction using the net qualified business income. Generally, this is up to 20% of your QBI.

Step 5: Include Other Relevant Income

• Qualified PTP income (from publicly traded partnerships)
• Qualified REIT dividends
• Notional principal contracts

Include these carefully to maximize your deduction.

Step 6: Verify Income Thresholds

The QBI deduction is limited if your income exceeds thresholds. If you’re over the limit, Form 8995-A may be required instead.

Step 7: File and Save a Copy

Once completed, attach Form 8995 to your tax return. Save a copy for your records, especially if claiming deductions for multiple years.

Common Mistakes to Avoid

Many OnlyFans creators make mistakes that can increase their taxable income or trigger IRS issues. A common error is misreporting personal expenses as business expenses, which can lead to audit risks and penalties. Some creators forget to claim eligible deductions, such as the home office deduction, which is a legitimate way to reduce net qualified business income. Using an incorrect taxpayer identification number or failing to include income from up to five businesses if you operate multiple ventures can also create problems. Additionally, missing quarterly estimated taxes payments is another frequent mistake that can result in unexpected self-employment taxes or interest. Staying organized, accurately tracking OnlyFans income, and separating personal from business expenses helps avoid these issues and ensures you maximize tax savings.

Additional Tips for OnlyFans Creators

• Keep Separate Accounts: Avoid mixing personal and business funds; this simplifies tracking business income and deductions.
• Track Expenses Consistently: Software or apps can help record business expenses, from subscriptions to equipment.
• Consult a Professional: OnlyFans creators with high income or multiple revenue streams benefit from expert guidance.
• Review Prior Year Returns: Ensure previous QBI deductions are properly accounted for.

How This Impacts Your OnlyFans Taxes

Completing Form 8995 correctly directly affects your OnlyFans taxes by:

• Lowering income tax through the QBI deduction
• Reducing the amount you pay quarterly in estimated taxes
• Helping track self-employment income and deductions efficiently
• Ensuring compliance with IRS regulations for sole proprietorships and pass-through entities

FAQs

What is form 8995 on tax returns PDF?

You can download the official IRS Form 8995 PDF directly from the IRS website. The form provides a clear template for calculating the Qualified Business Income (QBI) deduction. It also includes instructions to help OnlyFans creators and other small business owners accurately report their net qualified business income.

What is form 8995 on tax returns QBI?

Form 8995 is used to calculate the QBI deduction, which reduces taxable income for eligible self-employed individuals. This includes OnlyFans income and other self-employment income from sole proprietorships or pass-through entities. Correctly completing the form ensures you maximize legitimate tax write-offs and tax savings.

What is form 8995 on tax returns 2022?

For the 2022 tax year, the QBI deduction thresholds were $191,950 for single filers and $383,900 for married filing jointly. Form 8995 calculates your net qualified business income within these limits. This helps OnlyFans creators determine the proper deduction to lower their taxable income and tax bill.

When to use Form 8995?

You should use Form 8995 when claiming the QBI deduction for income from sole proprietorships, partnerships, or S corporations. It is applicable if your income is below the IRS thresholds and you do not have complex adjustments. Using this form helps accurately report business income, maximize deductions, and manage OnlyFans taxes efficiently.

Conclusion

Understanding what is form 8995 on tax returns is essential for any OnlyFans creator or small business owner who wants to lower taxable income and maximize tax savings. Properly completing this form allows you to claim the Qualified Business Income deduction, track your OnlyFans income accurately, and separate business expenses from personal costs. It also helps you avoid common filing mistakes that could trigger IRS audits, ensures compliance with self-employment tax rules, and gives you confidence that your tax return reflects your true financial picture.

For expert guidance and support with OnlyFans taxes, The OnlyFans Accountant is ready to help you maximize deductions, organize your business expenses, and file confidently. Contact us to get started and take control of your tax planning with professional advice tailored for creators.