OnlyFans Creator Taxes in Michigan - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Michigan?

Yes, absolutely. Income earned through OnlyFans is considered taxable income by both the federal government and the state of Michigan. 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).

Michigan Specific Rules: Michigan has a flat income tax rate of 4.05% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be included in your Michigan income tax calculation. You'll file Form MI-1040 to report your income and calculate your Michigan tax liability. Michigan also allows for itemized deductions, but these are generally less beneficial than maximizing business deductions on Schedule C for OnlyFans creators.

Top Tax Write-offs for OnlyFans Creators

Maximizing your deductions is crucial to minimizing your tax liability. Here are some common write-offs for OnlyFans creators:

• Software & Subscriptions: Expenses for software used to edit photos/videos, streaming software, scheduling tools, or any subscription services directly related to creating and managing your OnlyFans content are deductible.
• Equipment: Costs for cameras, lighting, computers, phones, and other equipment used specifically for your OnlyFans business 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. 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. The IRS has specific rules for this deduction, so careful record-keeping is essential.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on earnings over $400. You'll calculate this tax on Schedule SE (Self-Employment Tax). Don't be alarmed when you see this amount – it's a normal part of being self-employed. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Closing Tip for Michigan 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 (like myself!) who understands the unique challenges and opportunities facing content creators. Proactive tax planning can save you significant money and stress come tax season. Good luck, and remember to file on time to avoid penalties!