OnlyFans Creator Taxes in Minnesota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in Minnesota?

Yes, absolutely. Income earned through OnlyFans is considered taxable income by both the federal government and the state of Minnesota. As an OnlyFans creator, you are generally considered self-employed by the IRS and Minnesota Department of Revenue. This means you're responsible for reporting your earnings and paying all applicable taxes.

Federal Requirements (Schedule C): You will report your OnlyFans income and expenses on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form calculates your net profit (income minus expenses). It's crucial to keep detailed records of all income received and all business expenses paid.

Minnesota Specific Rules: Minnesota has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C will be added to your other income (if any) and taxed according to the Minnesota income tax brackets for the 2024 tax year (filing in 2025). Minnesota also has a standard deduction and itemized deduction options, similar to the federal system. You'll use Form M1 to calculate your Minnesota taxable income. Be aware that Minnesota's tax laws sometimes differ from federal laws, so staying informed is key.

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 often deduct the full cost in the year of purchase (Section 179 deduction) or depreciate the cost over several years.
• 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 rent/mortgage, utilities, and home insurance. There's a simplified method available as well.
• Mileage: If you drive for business purposes (e.g., to purchase equipment, attend networking events, or meet with clients), you can deduct mileage. For 2024, the standard mileage rate is approximately 67 cents per mile. Keep a detailed mileage log!
• Subscription & Platform Fees: The fees you pay to OnlyFans itself are a deductible business expense. Keep records of all fees paid.

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 – a combined 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. However, this tax is in addition to your regular income tax.

Closing Tip for Minnesota Residents

Navigating taxes as an OnlyFans creator 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 content creators. Minnesota has specific rules, and proper planning can save you significant money and potential headaches during tax season. Don't hesitate to seek professional guidance to ensure you're compliant and maximizing your deductions.