OnlyFans Creator Taxes in Arkansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Arkansas?

Yes, absolutely. Income earned through OnlyFans is considered taxable income by both the federal government and the state of Arkansas. As an OnlyFans creator, you are generally considered self-employed by the IRS. This means you’ll report your earnings and expenses on a Schedule C (Profit or Loss from Business) and file it with your Form 1040.

Federal Requirements (Schedule C): You'll report all income received through OnlyFans as business income on Schedule C. You'll then deduct allowable business expenses (more on those below) to arrive at your net profit. This net profit is then added to your other income (if any) to calculate your Adjusted Gross Income (AGI) on your Form 1040.

Arkansas Specific Rules: Arkansas has a graduated income tax system. This means the tax rate you pay depends on your taxable income. Your net profit from your Schedule C will be included in your Arkansas taxable income, and taxed accordingly. Arkansas also has standard deductions and exemptions that can reduce your taxable income. You'll use Form AR1000 to file your Arkansas state income tax return. The Arkansas tax brackets for 2024 (filing in 2025) will determine your state tax liability. It's crucial to accurately calculate your federal AGI as this impacts your Arkansas return.

Top Tax Write-offs for OnlyFans Creators

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

• Equipment & Software: Expenses for cameras, lighting, computers, editing software (like Adobe Creative Cloud), and any other equipment used directly for creating content are deductible. You can either deduct the full cost in the year of purchase (under Section 179, subject to limitations) or depreciate the asset over its useful life.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your OnlyFans business (e.g., a dedicated room for filming/editing), you may be able to deduct a portion of your mortgage interest or rent, utilities, and home insurance. The deduction is based on the percentage of your home used for business.
• Mileage: If you drive for business purposes (e.g., to purchase equipment, attend meetings, or film content off-site), 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.
• Subscription & Service Fees: Fees paid to OnlyFans themselves are deductible as a business expense. Also, costs for any other services used to manage your business (e.g., scheduling tools, virtual assistants) are deductible.

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 only pay self-employment tax on 92.35% of your net earnings from Schedule C. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Arkansas Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous 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 in Arkansas. Proactive tax planning can save you money and prevent potential issues with the IRS and the Arkansas Department of Finance and Administration. Don't hesitate to seek professional guidance to ensure you're maximizing your deductions and complying with all applicable tax laws.