How to properly file 1099 form for Onlyfans
One of the most well-known social media networks in the world during the past several years is OnlyFans. Through OnlyFans, it has developed into a fantastic platform for content creators to make a lot of money.
All the advice you require will be included in this article to help you submit your OnlyFans 1099 taxes as fast and easily as possible. Let’s start by taking a look at the tax documents you will be sent as a content creator.
You will receive 1099s as a content creator with OnlyFans
OnlyFans or a third-party payment processor will issue you a 1099 information return if you meet specific criteria. We’ll go over some of the most typical 1099 forms as a self-employed content creator for OnlyFans.
IRS 1099-NEC
If you were paid more than $600 by a business, you must get a 1099-NEC.
Due to its low reporting level, the 1099-NEC is the tax form that is most frequently provided to independent contractors. You probably won’t get a tax form until you made more than $600 via the app. You must still file a tax return by the deadline and pay any applicable taxes on your income.
By the end of January, OnlyFans must provide the 1099 documents by mail. In order for the IRS to know if you failed to pay taxes, the company will also send a copy of your 1099 to them.
If you complied with the criteria, the 1099-NEC can be downloaded from your OnlyFans account.
If you would like to read the Ultimate Guide to taxes for Onlyfans, click here to read now.
New Laws In 2022
Joe Biden, the president of the United States, has signed a new law requiring a lower bar for obtaining a 1099-K from third-party payment providers. The minimum need has been reduced from $20,000 in payments to $600. This is being done in order to catch people who want to evade.
1099-K
PayPal users who accept payments for content outside of their platforms may receive a 1099-K, which is required if at least $20,000 in payments were processed and at least 200 transactions were completed in the previous year.
The 1099-K will not be sent to you by OnlyFans, but you will receive the tax form from the third-party payment processor.
Massachusetts and Vermont residents who received more than $600 in gross payments will need to file a 1099-K instead of a 1099-NEC.
Reporting All Of Your Taxable Income
Even if you make money off the site, the IRS still considers it to be income that must be reported to them. All of your gross income, whether it comes through OnlyFans, WebChat, or Snapchat premium accounts, must be reported to the IRS.
1099 denotes that no taxes were deducted from your pay. Employees, for instance, have money deducted from their paychecks to cover Social Security and Medicare taxes.
Quarterly Tax Deadlines
The deadlines to pay taxes quarterly are:
- 15 April
- 15 June
- 15 September
- 15 January
Paying Self-Employment Tax On Your Earnings
If you are a self-employed business owner, you will have to pay both federal and state income taxes. Depending on your state of residence, you will have to pay income tax on profits in the range of 0% to 10.75%. The federal tax rate may range from 10% to 37%, depending on your income level. As opposed to self-employment tax, your annual income determines how much you will owe.
You’ll also have to pay FICA taxes. Social Security (12%), Medicare (2.9%), and self-employment taxes are included in FICA taxes. You have to pay a 15.3% self-employment tax, just like you would if you were an employee. OnlyFans does not deduct taxes from your income, as it would if you were an employee.
When You Do Not Need To Pay Self-Employment Taxes
In accordance with the IRS, a self-employed individual with a self-employment income of less than $400 can be exempt from paying Social Security and Medicare taxes.
It is still necessary for you to report the earnings on your income tax even though you are exempt from self-employment taxes. As long as you are only using your OnlyFans profile as a pastime and not as a business, you will not be required to pay self-employment taxes.
OnlyFans influencer tax deductions.
| 1 | Cell phone bill | Cell phone expenses that relate to business can be deducted from your tax bill. |
| 2 | Camera and equipment | It is tax deductible if you buy a new camera so that you can shoot videos for your OnlyFans business. This also includes a tripod, lighting equipment, and a separate computer. |
| 3 | Content accessories | I won’t go into too much detail now, but I did want to point out that any accessories you used to create your content, for your photo shoots, or for your movies are tax-deductible. It must be purchased mostly for commercial purposes or for content creation, and not for personal use in order to qualify as a tax deduction. |
| 4 | Home office deduction | In case you are a self-employed content creator, you may be able to deduct the costs of a room in your house that is used for filming movies or staging photo sessions from your taxes. You may be able to deduct a portion of your mortgage. It is important to note that in order to qualify for a home office deduction, the area of your home that is used solely for work-related activities must qualify as your “principal place of business.” In addition, you may be able to deduct a percentage of your rent. You can also claim a portion of your utility bill as a deduction. |
| 5 | Internet or Wifi | It is necessary to have access to the internet in order to create online content. A portion of your internet payment will be tax deductible. The clothes that you buy to produce online content are also tax deductible. It is important to note that the clothing you are purchasing cannot be worn every day. Jeans or any other clothing that you could wear at a supermarket or mall is not eligible for a deduction. |
| 6 | Hotels/AirBNBs | If, for instance, you leased a hotel room for a photo shoot or a luxurious Airbnb for a night, you can deduct these costs. |
| 7 | Stage Make-up and beauty supplies | If you use any beauty accessories specifically for the purpose of taking photos or making videos, you can deduct them from your tax return. |
