creator tax guide

federally it's ordinary self-employment income — subs, ppv, customs, all taxed like any freelancer's. what you sell doesn't change it.

onlyfans' us payer. for 2026 a 1099-nec only comes at $2,000+ (up from $600) — smaller payouts are still taxable.

the $600 threshold was repealed. venmo/cashapp tips under $20k won't trigger a form — still fully taxable.

vat (a sales tax in europe etc.) is charged and remitted by the platform, not you — courts confirmed it's the “supplier.”

selling merch, polaroids, or clothing directly can owe state sales tax — and other states once you sell ~$100k or 200 orders in (“economic nexus”). separate from your digital income.

call it a hobby and you keep the income but lose every deduction. records, marketing, and steady effort make it a business.

nine states tax no earned income (fl, tx, nv, tn…); california tops 13%. budget accordingly. non-us creators: different rules entirely.

if it's common in your work and genuinely for the business, it's deductible on schedule c (the self-employment part of your return). keep receipts; a separate business account makes it automatic.

your 1099 shows gross, before onlyfans' ~20%. report gross, deduct the fee — don't get taxed on money you never got.

cameras, lights, computers — section 179 / bonus depreciation let you expense gear the year you buy it, not over years. business-use share only.

a space used only for filming/admin qualifies; your bedroom doesn't. deduct $5/sq ft (up to $1,500) or the business share of costs. any personal use kills it.

deduct the work-use share of your cell + internet, not the whole bill. a phone bought only for content is 100%.

deductible only if it's not wearable in daily life — costumes yes; regular outfits or lingerie you could wear out, no, even if bought only for content. note why each piece fails the test.

props/supplies, software, paid promo, business travel (lodging + transport full, meals 50%), and accountant/lawyer fees — all deductible.

the qualified business income (qbi) deduction knocks up to 20% off your profit before income tax — no itemizing. under ~$200k single / $400k joint you get the full 20%.

you deduct the “employer half” of the 15.3% against income tax — automatic, no itemizing.

100% of your medical/dental/vision premiums come off the top — if you have net profit and no employer or spouse's plan.

a sep-ira (25% of pay) or solo 401(k) (up to $72,000 in 2026) shelters real money; a traditional ira adds $7,500 more, plus the saver's credit for lower earners.

below that, payroll + filings + accounting ($2,000–$5,000+/yr) eat the savings. a cpa rule of thumb, not an irs number — run your own.

rule of thumb — no single source; ask your cpa.

a single-member llc is a “disregarded entity” — the irs taxes you exactly like a sole proprietor. it's liability protection, not a tax move.

pay yourself a salary (payroll-taxed) and take the rest as distributions (no 15.3% se tax) — but the salary must be “reasonable,” or the irs reclassifies it.