OnlyFans Creator Taxes in Colorado - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Colorado?

Yes, absolutely. Income earned through OnlyFans is considered taxable income by both the federal government and the State of Colorado. 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 all 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) on Form 1040 to determine your adjusted gross income (AGI).

Colorado Specific Rules: Colorado has a flat income tax rate of 4.40% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be included in your Colorado taxable income, and you’ll pay 4.40% on that amount. Colorado also requires you to file a state income tax return (Form DR 0104) to report this income. Colorado generally follows federal adjusted gross income (AGI) as a starting point for calculating state taxable income, but there can be some differences, so it's important to use Colorado-specific forms and instructions.

Top Tax Write-offs for OnlyFans Creators

As a self-employed individual, you can significantly reduce your tax liability by claiming all eligible 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 used specifically for your OnlyFans business are deductible.
• Equipment: Expenses for cameras, lighting, backdrops, computers, phones, 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 purchase equipment, attend networking events, or to locations for content creation), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile. Keep a detailed mileage log!
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your OnlyFans business, you may be able to deduct a portion of your rent/mortgage, utilities, and other home-related expenses. There are specific rules and calculations for this deduction.

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). The good news is you only pay self-employment tax on 92.35% of your net profit from Schedule C. You do get to deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Colorado Residents

Navigating taxes as an OnlyFans creator can be complex. It's highly recommended to keep meticulous records of all income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional, especially one familiar with the gig economy and self-employment taxes. Proactive tax planning can save you money and stress come tax season. Don't hesitate to seek professional guidance to ensure you're maximizing your deductions and complying with all federal and Colorado tax laws.