If you’re an OnlyFans creator, or a similar self-employed online content creator, navigating tax season can feel like a full-time job. With the new 1099 rules for 2024, 2025, and 2026, understanding how these changes affect your business is more important than ever. This guide is specifically for OnlyFans creators and other digital entrepreneurs who want to stay compliant, avoid IRS penalties, and keep their income secure. Whether you’re just starting out or already earning $20,000 to $90,000 a month, you’re considered self-employed. That means the way you file your taxes is different, and the stakes are higher. Knowing the new 1099 rules for 2024-2026 is essential for accurate tax filing and peace of mind.
What Is a 1099 Form?
A 1099 form is a document that reports income that isn’t from a traditional job. If you’re self-employed or receiving money from platforms like OnlyFans, you probably won’t get a W-2 like an employee would. Instead, you’ll receive a 1099 form showing how much you were paid.
There are multiple types of 1099 forms. Some creators might only get one. Others might get more than one, depending on how they receive payments. Either way, you’re still responsible for reporting all taxable income, even if you don’t receive a form at all.
Now that you understand what a 1099 form is, let’s dive into which specific forms matter most for OnlyFans creators and similar online entrepreneurs.
Which 1099 Forms Matter for OnlyFans Creators?
Here’s a quick breakdown of the 1099 forms you need to know:
| Form | What It Reports | Who Sends It |
|---|---|---|
| 1099-NEC | Nonemployee compensation (payments to independent contractors) | OnlyFans (if you earn $600 or more; threshold increases to $2,000 in 2026) |
| 1099-K | Third party network transactions | Payment processors like Stripe or PayPal |
| 1099-MISC | Miscellaneous income (rare for OnlyFans; used for other types of income) | Brands, partners, or sponsors outside the platform |
Form 1099-NEC is used to report Nonemployee Compensation payments to independent contractors. The IRS requires businesses to file Form 1099-NEC for Nonemployee Compensation payments to independent contractors.
Form 1099-MISC is used to report Miscellaneous Income payments, with a reporting threshold of at least $600 in most cases. The IRS requires businesses to file Form 1099-MISC for miscellaneous income payments of $600 or more.
For most OnlyFans creators, the 1099-NEC is the main form to watch. But depending on how you accept money outside the platform, the 1099-K might show up in your mailbox, too.
Now that you know which forms to expect, let’s look at the latest IRS changes that could affect your reporting.
Big IRS Changes to the 1099-K Form
The Internal Revenue Service (IRS) has made significant updates to 1099 reporting requirements, especially for creators who accept payments through third-party apps, run side projects, or work with fans directly through alternative platforms.
Updated 1099-K and 1099-NEC/1099-MISC Thresholds and Timeline
| Tax Year | Form | Reporting Threshold | Trigger |
|---|---|---|---|
| 2024 | 1099-K | $5,000 (no transaction minimum) | Over $5,000 in third-party payments |
| 2025 | 1099-K | $20,000 + 200 transactions | Reverts to previous threshold; $600 postponed |
| 2026 | 1099-NEC/MISC | $2,000 | Threshold increases for these forms |
| 2027+ | 1099-NEC/MISC | $2,000 (adjusts for inflation) | Annual inflation adjustment begins |
- For 2024, payment platforms must report payments totaling $5,000 or more in a calendar year, with no transaction minimum.
- For 2025, the planned $600 threshold is postponed, and the 1099-K threshold reverts to $20,000 and 200 transactions.
- For 2026, the reporting threshold for Forms 1099-NEC and 1099-MISC increases from $600 to $2,000 under the One Big Beautiful Bill Act (OBBBA).
- Starting in 2027, the $2,000 threshold for 1099-NEC and 1099-MISC will adjust annually for inflation.
If you receive third-party network transactions totaling more than the threshold, expect a 1099-K in the mail. Even if that money came from personal projects or direct fan support, the IRS sees it as reportable payments.
Understanding these changes is crucial for accurate tax reporting and avoiding penalties. Next, let’s explore why these updates matter for your business.
Why These Changes Matter to You
When it comes to taxes, understanding the changes and how they impact your income is crucial. Here’s why staying informed is important to secure compliance and avoid any surprises:
Multiple Forms
You might get more than one form.
For example, if you get a 1099-NEC from OnlyFans and a 1099-K from a service like Cash App or PayPal, the IRS sees both. That means you’re responsible for reporting everything correctly to avoid getting flagged for underreporting.
Reporting All Income
Not getting a form doesn’t mean you’re off the hook.
Even if you don’t receive a tax form at all, you’re still required to report all gross income. That includes every tip, custom order, or sponsorship payment. If you skip it, it could lead to penalties or worse, an audit. Transitioning from understanding the importance of compliance, let’s break down exactly what types of income you need to report.
Everything You Make Is Taxable
If it’s money and it hits your account, it’s business income. That includes:
- Subscription payments
- Private chats
- Tips
- Paid messages
- Sponsorships
- Affiliate commissions
- Direct fan support
- Collab or brand payments
- Digital product sales
Even cash paid by a fan for a custom video counts. The IRS doesn’t care how the money comes in. It just wants you to report transactions and pay your income tax.
Now that you know what’s taxable, let’s look at how you can reduce your tax bill with legitimate business deductions.
What Counts as a Tax Write-Off for Creators?
You’re taxed on your net income, not your gross proceeds. That means you can reduce your taxable amount by subtracting ordinary and necessary business expenses. These are known as tax write-offs.
Common Deductions
| Expense | Can You Deduct It? |
|---|---|
| Cameras, lights, props | Yes |
| Costumes and makeup | Yes |
| Software and editing tools | Yes |
| Home office setup | Yes, if used for work |
| Internet and phone bills | Partial deduction |
| Travel for shoots | Yes |
| Professional services | Yes (legal services, tax prep, etc.) |
| Marketing or paid ads | Yes |
Record-Keeping Tips
Be sure to keep records, receipts, and notes. If you’re ever audited, you’ll need to back it up.
With your deductions in order, let’s move on to the process of filing your taxes under the new 1099 rules.
Filing Your Taxes with the New 1099 Rules
Filing taxes means submitting your income tax return with all necessary forms and schedules. As a creator, you’ll need to file as self-employed unless you’ve set up a limited liability company.
Forms You Might Need:
- IRS Form 1040 – main individual tax form
- Schedule C – reports business income and expenses
- Schedule SE – calculates your self-employment tax
- 1099-NEC, 1099-K, or both
- Employer Identification Number (if you run an LLC)
Filing on time is key. The due date for most creators is April 15 unless you request an extension.
Transitioning from filing requirements, let’s compare your options for submitting your tax return.
E-Filing vs Paper Filing
| Method | Benefits | Downsides |
|---|---|---|
| Electronically file | Faster, easier, fewer errors | May require special software |
| Paper filing | Traditional, no tech needed | Slower, more prone to mistakes |
If you file more than 10 forms for your business, the IRS requires you to file electronically using an approved online portal.
Now, let’s discuss what happens if you don’t report everything accurately.
What Happens If You Don’t Report Everything?
Skipping income, ignoring your forms, or filing late can lead to penalties and other problems. The IRS has the right to apply backup withholding, charge interest, and delay future refunds.
Other risks include:
- Getting flagged for an audit
- Paying the maximum penalty
- Losing business accounts or platform privileges
- Trouble qualifying for business loans
Reporting honestly and keeping clean books helps you avoid all that.
Let’s wrap up with best practices for staying tax compliant as a creator.
How to Stay Tax Compliant as a Creator
Staying tax-compliant is a crucial part of managing your business as a creator. The new 1099 rules require careful attention to detail when it comes to your finances. Here are some best practices to help you stay on track:
Best Practices for Record-Keeping
To stay tax-compliant with the new 1099 rules, you need to:
- Report all income payments even small ones.
- Track gross proceeds paid and cash payments. Keep detailed records.
- Use software to organize income and expenses. Automate where possible.
- Understand your filing deadlines. Mark your calendar.
- Separate personal and business money. Use different accounts.
- Avoid mixing business with hobby income. Keep it professional.
- Work with a professional if things get complex.
Keeping your taxes in order is part of running a business. It builds credibility, lowers your stress, and keeps your money working for you.
FAQs
What if I earned money from multiple platforms?
You may get different 1099 forms from each platform you use. It’s important to add them all up and report the total as part of your gross income when filing your taxes. This makes sure that the IRS has a complete view of your earnings and helps avoid any discrepancies.
Do I still need to file if I didn’t hit $600?
Yes, even if you didn’t receive a 1099 form, the IRS still expects you to report all your income. The form is merely a tool for reporting, but your responsibility to report income remains. Not doing so could lead to penalties or audits, regardless of whether you receive a form.
Will I get in trouble if I miss the 1099 deadline?
If you miss the filing deadline, the IRS may charge you late fees and interest on the taxes owed. In cases where the delay seems intentional, there could be more severe penalties or consequences. If you’re unsure, it’s best to seek professional help before the tax season ends to avoid further complications.
How do I track income from fans who pay me directly?
Use a spreadsheet or accounting software to record every payment. Include the date, amount, and payment method. Whether you receive money through a third party, Cash App, or direct bank transfer, it’s your job to report payments accurately.
Conclusion
As an OnlyFans creator, your content is your brand, but your income is your business. The new 1099 rules are just one piece of a bigger system that includes tax laws, tax compliance, and your responsibility to report things like direct sales, broker payments, and royalty payments. Whether you’re paid through Form 1099-NEC, Form 1099-MISC, or you receive personal payments, it all adds up as other income that must be reported on your calendar-year tax return. Skipping this can lead to issues with IRS records, especially if there’s backup withholding or mismatched totals linked to your taxpayer identification number. Staying compliant means understanding what the business pays.
At The OnlyFans Accountant, we help creators stay on top of their tax obligations and maximize their deductions under the new 1099 rules. Whether you’re looking for guidance on reporting income, tracking expenses, or filing your taxes, we’re here to make the process simpler. Contact us today to schedule your consultation and get expert help with your OnlyFans taxes.