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image represents Does OnlyFans send a W2

Does OnlyFans send a W2?

OnlyFans is a social media platform that enables content creators to publish videos and other types of content that are hidden behind a paywall. This is why OnlyFans has been so popular during the lockdown. Subscribers to OnlyFans creators have the option of paying OnlyFans or the creators directly. However, they frequently make direct payments to OnlyFans. OnlyFans keeps a portion of these fees in exchange for getting the net amount from the OnlyFans creators.

What is W2

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Basically, a W-2 is the informational document that employers are required to submit to the Social Security Administration in order to disclose the wages they pay to their employees, the taxes they deduct from those wages, as well as other information particular to certain types of employee compensation.

You will not get W2 from OnlyFans

A creator with OnlyFans is an independent business owner.

In other words, you are not an employee of OnlyFans, but rather a sole proprietor. This is important to understand for various reasons.

You will not be getting a W2 at the end of the year. The total amount OnlyFans paid you during the year will appear in box 1 of your 1099NEC form.

ESTIMATED TAXES

As OnlyFans will not be deducting any taxes from your salary, you will be responsible for paying estimated tax payments yourself at the end of the year from the money that you are paid by OnlyFans.

Quarterly Tax Deadlines

The deadlines to pay taxes quarterly are:

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  • 15 April 
  • 15 June 
  • 15 September

OnlyFans will require you to fill out a form W-9 when you create an account to become a creator on 15 January.

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By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.

Do I need to Pay Taxes on my OnlyFans Earnings?

Yes, Self-employed individuals are those who generate their own money without the assistance of an employer. You might still need to pay taxes, though, depending on where you live (and how much money you make).

If you make more than $600 a year, you must submit taxes. You will receive a 1099 Misc. form from OnlyFans, which you will use to submit your taxes. To lower your tax liability, you can potentially be qualified for tax deductions.

It’s essential to keep your personal and business costs separate in order to lower your tax liability. For instance, if you want to produce better OnlyFans content, you should consider purchasing a camera as a “business” expense rather than as a personal expense

Difference between W2 and 1099 forms

In terms of tax withholdings, the two forms differ: those who submit W2 forms have the option of withholding the taxes, whereas those who have received form 1099 don’t. 

They are actually required to make quarterly tax payments based on an estimation of the annual tax ownable by these independent contractors and freelancers. 

Freelancers who opt for the 1099 form should also be aware that the self-employment tax is their responsibility to calculate and pay.

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