OnlyFans Creator Taxes in Alabama - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Alabama?

Yes, income earned as an OnlyFans creator is absolutely taxable, both at the federal and Alabama state levels. The IRS considers income from OnlyFans as self-employment income. This means you're essentially running your own business, even if it's just you.

Federal Requirements: Schedule C – You will report your OnlyFans income and expenses on Schedule C (Profit or Loss From Business) when you file your federal income tax return (Form 1040). This form calculates your net profit (income minus expenses), which is then factored into your adjusted gross income (AGI). Keep meticulous records of all income and expenses.

Alabama Specific Rules: Graduated Income Tax – Alabama has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (if any) to determine your Alabama taxable income. You'll then use the Alabama tax brackets to calculate your state income tax liability. As of late 2024, Alabama's tax rates range from 1.7% to 5% (rates are subject to change, so always verify with the Alabama Department of Revenue).

Top Tax Write-offs for OnlyFans Creators

As a self-employed individual, you can significantly reduce your tax burden by claiming legitimate business expenses. Here are some common deductions for OnlyFans creators:

• Software & Subscriptions: Costs for editing software (photo/video), streaming tools, scheduling apps, and any subscription services directly used for creating and managing your OnlyFans content are deductible.
• Equipment: Cameras, lighting, computers, phones (portion used for business), backdrops, and other equipment used to create content are deductible. If the item has a useful life of more than one year, you may need to depreciate it over several years, or potentially use Section 179 expensing (consult a tax professional for details).
• Mileage: If you drive for business purposes (e.g., to meet with collaborators, purchase equipment, attend relevant events), you can deduct mileage. For 2024, the standard mileage rate is approximately 67 cents per mile. Keep a detailed mileage log with dates, destinations, and business purpose.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your OnlyFans business, you may be able to deduct expenses related to that space (rent/mortgage interest, utilities, etc.). The IRS has specific rules for this deduction, so ensure you meet the requirements.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised by self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions, totaling 15.3% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you don't pay self-employment tax on the entire net profit from Schedule C. You only pay it on 92.35% of your net earnings. You then get to deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Alabama Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) who understands the unique challenges faced by OnlyFans creators. Don't wait until tax season to start thinking about your taxes – proactive planning can save you time, money, and potential headaches. The Alabama Department of Revenue website (https://revenue.alabama.gov/) is a valuable resource for state-specific tax information.