OnlyFans Creator Taxes in Kentucky - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Kentucky?

Yes, income earned as an OnlyFans creator is absolutely taxable, both at the federal and Kentucky state levels. The IRS considers you self-employed, meaning you're running a business. This has specific tax implications.

Federal Requirements: You'll report your OnlyFans income on Schedule C (Profit or Loss from Business), which is filed with your Form 1040. Schedule C allows you to deduct business expenses (more on that below) to arrive at your net profit. This net profit is then added to your other income (if any) to determine your adjusted gross income (AGI) and ultimately, your tax liability.

Kentucky Specific Rules: Kentucky has a flat income tax rate of 4.0% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be included in your Kentucky income calculation, and you’ll pay 4.0% on that amount. Kentucky also requires you to file a state income tax return (Form 740) to report this income.

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 (e.g., Adobe Creative Suite, photo/video editing apps), scheduling tools, content management platforms, and any subscriptions directly related to creating and managing your OnlyFans content are deductible.
• Equipment: Expenses for cameras, lighting, backdrops, computers, phones (portion used for business), and other equipment used to create your 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 67 cents per mile (verify the final official rate from the IRS). 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 home insurance. There are specific rules and calculations for this deduction – it's often best to use the simplified method.

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. This combined tax is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability. Remember, self-employment tax applies to net earnings over $400.

Closing Tip for Kentucky Residents

Navigating self-employment taxes can be complex. Keeping meticulous records of your income and expenses is crucial. Consider using accounting software or working with a qualified tax professional (like myself!) who understands the unique challenges faced by OnlyFans creators. Don't hesitate to seek professional guidance to ensure you're maximizing your deductions and complying with all federal and Kentucky tax laws. Good luck, and happy creating!