Understanding which expenses you can deduct from your taxable income is essential to lowering your tax bill and keeping more of your hard-earned money. Above the line deductions are particularly significant as they are subtracted from gross income to calculate the adjusted gross income (AGI), thereby reducing overall tax liability and impacting eligibility for additional tax benefits. A list of tax deductible items helps individuals and business owners identify eligible deductions, reduce their adjusted gross income (AGI), and optimize their tax return, whether you file itemized deductions or take the standard deduction, knowing what counts can significantly impact your overall tax liability.
This guide covers the most common and important tax deductions for 2025, including those for self-employed people and small business owners, as well as deductions relevant to everyday taxpayers.
What Are Tax Deductions and Why Do They Matter for OnlyFans Creators?
A tax deduction is an expense that reduces your gross income before taxes, lowering your adjusted gross income and therefore your taxable income. Certain deductions, known as ‘above the line’ deductions, reduce your gross income and affect your AGI. For creators reporting self employment income, deductions are key to reducing the amount of income on which you actually pay tax.
Unlike tax credits, such as the earned income tax credit or child tax credit, which reduce your overall tax bill directly, deductions reduce the income the IRS taxes. This is especially important for self-employed people who pay both income taxes and self employment tax, covering Social Security and Medicare.
You can choose between taking the standard deduction or itemizing your deductions, such as mortgage interest deduction, state and local taxes, and other common tax deductions. Knowing which deductions apply helps you optimize your tax strategy.
Common List of Tax Deductible Items
Many creators miss valuable deductions that can significantly reduce their taxable income. Below are key tax deduction examples you should consider:
The IRS defines a business expense as any cost that is both necessary and ordinary for business operations.
Equipment and Technology Costs
Purchases like cameras, smartphones, lighting, computers, and editing hardware are all tax deductible as business expenses. These items are necessary for generating business income through content creation, and you can deduct the full cost or depreciate them over several years.
Internet and Phone Bills
Your monthly internet and phone bills are partly deductible if you use them for your OnlyFans business. Calculate the business-use percentage to claim the appropriate amount.
These expenses can be considered write-offs to reduce your taxable income.
Home Office Deduction
If you use part of your home exclusively and regularly for your OnlyFans business, you qualify for the home office deduction. This allows you to deduct a portion of rent or mortgage interest, utilities, and home maintenance costs.
Additionally, if you own your home, real estate taxes can be included in the home office deduction.
Subscriptions and Software
Monthly or annual fees for editing software, hosting platforms, music licenses, and financial apps like tax software are deductible. Claiming these deductions may require filling out extra forms like Schedule C.
Makeup, Costumes, and Props
Items like makeup, wigs, costumes, and props used solely for creating your content are deductible. These costs must be business-related and not suitable for everyday wear.
Advertising and Promotion
Expenses for social media ads, promotional giveaways, and influencer partnerships aimed at growing your OnlyFans account qualify as tax deductible marketing costs.
These advertising and promotion costs can also be considered tax write offs to lower overall tax liabilities.
Travel and Meals
If you travel for business purposes, events, photoshoots, or meetings, you can deduct transportation, lodging, and 50% of meals related to your trips.
Additionally, travel and meal costs can be deducted as unreimbursed expenses if they are not reimbursed by the business.
Professional Services
Fees paid to tax professionals, accountants, or lawyers to help with your OnlyFans business or tax filings are deductible.
Important Tax Deductions Unique to OnlyFans Creators
Self-Employment Tax Deduction
Creators pay self employment tax, covering both employer and employee portions of Social Security and Medicare. You can deduct half of this tax from your taxable income, reducing your overall tax liability. Additionally, self-employed individuals must make quarterly taxes payments to avoid penalties.
Business Use of Your Car or Ride-Sharing Costs
If you use your vehicle for business-related travel, you can deduct mileage or actual expenses as a business expense related to that business use.
Education and Training
Expenses related to courses or workshops that improve your content creation or business skills qualify as deductions.
Additionally, education and training expenses can be considered a tax write to reduce taxable income.
How to Track and Document Your Deductions Properly
Good record-keeping is essential for claiming tax deductible expenses and protecting yourself in case of an audit.
- Use dedicated apps or spreadsheets to track all business expenses and income.
- Keep receipts, invoices, and bank statements.
- Separate personal and business finances.
- Maintain mileage logs if you use your vehicle for work.
Proper documentation is also crucial for accurate tax returns and avoiding issues with the IRS.
When and How to File Taxes as an OnlyFans Creator
Creators must report their income on Schedule C with Form 1040. All income, including amounts not reported on 1099 forms, must be reported. Self-employed people must pay quarterly estimated taxes to avoid penalties.
Filing your taxes correctly, including deductions like the home office deduction, state and local taxes, and student loan interest deduction, helps ensure tax compliance. Understanding your tax obligations and making timely payments is crucial to correctly paying taxes.
FAQs
What expenses can I deduct as an OnlyFans creator?
You can deduct equipment, internet and phone bills, home office costs, software subscriptions, makeup and costumes, advertising, travel, and professional service fees, all related to your content creation business. These expenses can be considered write offs to reduce taxable income.
How do I file taxes if I earn money on OnlyFans?
File as a self-employed individual using Schedule C on your Form 1040. Report all income, pay self employment tax, and file quarterly estimated taxes if necessary. Self-employed individuals must also complete extra forms like Schedule C when filing taxes.
Can I deduct my home office if I film at home?
Yes, if you use a specific area exclusively and regularly for your OnlyFans work, you can deduct a portion of your rent, utilities, and related expenses. Additionally, if you own your home, real estate taxes can be included in the home office deduction.
How should I keep records for my deductions?
Maintain receipts, invoices, and bank statements for all tax deductible expenses. Use apps or spreadsheets to track income and expenses throughout the tax year.
Conclusion
Navigating taxes as an OnlyFans creator can be overwhelming, but understanding your eligible tax deductions and tracking your business expenses early can make a big difference. By properly deducting costs like equipment, internet bills, and home office expenses, you reduce your adjusted gross income, lower your tax bill, and save money in the long run. Understanding and claiming all eligible tax write offs is crucial to reducing your taxable income. Tax laws and requirements change frequently, so staying informed about updates such as the Inflation Reduction Act and working with a tax professional or reliable tax software can help you maximize deductions and stay compliant.
At The OnlyFans Accountant, we specialize in helping creators maximize their tax deductions and minimize their tax liabilities. Whether you’re filing as a self-employed individual or need guidance on tracking business expenses, we’re here to help you navigate the complexities of OnlyFans taxes. Contact us today to schedule your free consultation and start optimizing your tax strategy for a more profitable future.