The new tax laws 2025 are bringing some important updates that every OnlyFans creator should pay attention to. Whether you’re earning $20k or closer to $90k a month, these changes can affect how much you owe, what you can deduct, and how you file your tax returns this year.
From shifts in income tax brackets and self-employment taxes to updates on itemized deductions, the standard deduction, and the child tax credit, the rules are tightening, especially for creators with multiple income streams. The IRS is also rolling out stricter 1099 reporting rules, and platforms like PayPal and Cash App will now report earnings starting at just $600. That means your onlyfans income is likely already on their radar.
What’s Changing in 2025
TCJA Provisions Are Expiring
Back in 2017, the Tax Cuts and Jobs Act (TCJA) introduced lower marginal rates, a higher standard deduction, and a few extra tax breaks. But those changes weren’t permanent. Many of them are set to expire in 2025 unless Congress extends them.
If nothing changes, here’s what could happen:
- The standard deduction will decrease, which could increase your taxable income
- The personal exemption might return, but won’t make up for the higher tax bill
- Tax brackets for individuals and married couples filing jointly may shift upward
- Fewer people may qualify for credits like the child tax credit
These shifts impact creators directly, especially those filing as sole proprietors or running their businesses as self-employed individuals.
1099-K Rules Are Tighter Now
The Internal Revenue Service now requires third-party payment apps like PayPal, Stripe, and Cash App to report any income over $600 with a 1099-K form. The old rule was $20,000 and 200 transactions. Not anymore.
Even if you don’t receive a form, you’re still expected to pay taxes on all your OnlyFans income. That includes:
- Subscriptions
- Custom videos
- Tips
- Referral bonuses
- Sponsored content
- Digital sales
Everything you earn is taxable income, and skipping reporting just increases the risk of penalties or audits.
You’re Self-Employed: Here’s What That Means
If you’re running an OnlyFans account, you are considered self-employed. That means you need to file a Schedule C, pay your own self-employment taxes, and possibly make quarterly estimated tax payments.
Tax Breakdown for Creators:
| Type of Tax | Rate or Requirement |
|---|---|
| Self-employment tax | 15.3 percent (Social Security + Medicare) |
| Federal income tax | Based on your taxable income and bracket |
| State and local taxes | Varies by state |
| Quarterly tax payments | Due every 3 months if you expect to owe over $1,000 |
If you earned more than $400 from your business in the 2025 tax year, you must file taxes. And if you’re not paying throughout the year, you could owe penalties.
What Counts as OnlyFans Income?
The IRS doesn’t care how you get paid just that you report it. Here’s what counts as income:
- OnlyFans subscriptions
- Custom video sales
- Pay-per-view content
- One-on-one chats or fan messaging
- Referral bonuses
- Brand deals
- Affiliate income
- Crypto or gifts that have a cash value
Even if someone paid you through Cash App or gifted you something through Amazon, it’s part of your modified adjusted gross income.
What You Can Write Off
Here’s where you can save. As a creator, you’re allowed to deduct business expenses that are ordinary and necessary for your work. These are your legal tax write-offs, and they can lower your taxable income significantly.
Common OnlyFans Tax Write-Offs:
| Category | Examples |
|---|---|
| Content gear | Cameras, lighting, editing software |
| Home office | Internet, rent, utilities (percentage used for work) |
| Wardrobe and props | Lingerie, costumes, wigs, props |
| Personal care | Nails, makeup, skincare (used only for content) |
| Travel | Flights, hotels, meals (if content-related) |
| Professional help | Virtual assistants, editors, legal help, accountants |
| Subscriptions | Editing apps, promotion platforms, domain names |
| Marketing | Paid ads, promo shoutouts, social media tools |
Save your receipts. Keep records of everything. If it supports your brand and your content, and it’s used for business, it’s likely deductible.
Watch Out for These Key Policy Shifts
Besides the 1099 changes and the TCJA expiration, there are a few other things that could affect your taxes:
- The maximum child tax credit could drop back to $2,000 or even lower
- Credits like the lifetime learning credit and education deductions may be phased out for higher earners
- The alternative minimum tax might apply if your income grows significantly
- Congress could pass a new tax policy that changes things mid-year, depending on elections or negotiations
Always check with a tax professional before making big moves. A good one can help you stay ready for whatever changes come next.
What About State and Local Tax?
If you live in a state with income tax, you’ll have to file at the state level too. This is in addition to your federal taxes. Every state has its own rules for deductions, rates, and credits.
And if you’re traveling for work or collaborating in other locations, local tax rules might apply too. This matters even more if you operate across multiple states or countries.
Don’t Forget Quarterly Payments
As a self-employed creator, you’re expected to pay as you go. That means sending estimated payments to the IRS every few months.
2025 Estimated Tax Deadlines:
- April 15
- June 15
- September 15
- January 15, 2026
If you skip these payments or don’t send in enough, you could owe interest and penalties, even if you pay in full by tax day. We recommend setting aside 25 to 30 percent of your monthly income for taxes and sending it in on time.
FAQs
Do I need to report income if I didn’t get a 1099?
Yes. The IRS requires you to report all income, even if you don’t receive a form. The 1099 is just a record. It’s your responsibility to report everything.
Can I deduct makeup, clothes, and hair expenses?
If they are used exclusively for work, yes. Makeup for shoots, lingerie for content, and wigs for characters may qualify as business expenses. If it’s used for both work and personal life, you can only deduct the work-related portion.
Do I need an LLC?
No. You can operate as a sole proprietorship without forming an LLC. An LLC may help with legal protection or separating business finances, but it doesn’t reduce your tax burden on its own.
What if I don’t pay quarterly taxes?
If you expect to owe more than $1,000 in taxes for the year, the IRS wants you to pay quarterly. Skipping those payments can result in fees and interest, even if you pay in full by April.
Conclusion
The new tax laws for 2025 are changing how creators handle OnlyFans taxes, with tighter reporting rules, possible changes to the corporate tax rate, and an increased focus on self-employment income. As the IRS adjusts its approach in response to shifts in tax policy and ongoing economic growth, it’s more important than ever to take your creator’s business seriously. Staying on top of your income, expenses, and deductions isn’t just about avoiding penalties, it’s about building something sustainable.
Your path to complete financial prosperity begins now. To master the art of tax planning and transform your future financial outlook at tax time, contact The OnlyFans Accountant for a free consultation. Want to learn how to maximize deductions, track expenses like a pro, save more, and navigate tax season like a boss? Get your FREE copy of our eBook.
Need assistance or guidance with completing your OnlyFans taxes? Call us today! Our experts are ready to help you navigate your tax obligations and maximize your deductions.