OnlyFans Creator Taxes in New Mexico - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is OnlyFans Creator income taxable in New Mexico?

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

Federal Requirements (Schedule C): You will report your OnlyFans income and expenses on Schedule C, "Profit or Loss From Business (Sole Proprietorship)," which is filed with your Form 1040. This form calculates your net profit (income minus expenses). It's crucial to keep meticulous records of all income received and all business-related expenses. The IRS expects you to demonstrate a reasonable effort to report income accurately.

New Mexico Specific Rules: New Mexico 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 New Mexico income tax brackets for the 2024 tax year (filing in 2025). You'll file Form R-1110, New Mexico Individual Income Tax Return, to calculate and pay your state income tax. New Mexico also allows for itemized deductions, which may further reduce your taxable income. You can find the current tax brackets and forms on the New Mexico Taxation and Revenue Department website: https://www.tax.newmexico.gov/

Top Tax Write-offs for OnlyFans Creators

As a self-employed individual, you can deduct legitimate business expenses to reduce your taxable income. Here are some common deductions for OnlyFans creators:

• Software & Subscriptions: Costs for editing software (photo, video), streaming software, scheduling tools, and any subscription services used specifically for your OnlyFans business are deductible.
• Equipment: Cameras, lighting, computers, phones (portion used for business), and other equipment used to create content are deductible. For expensive items, you may need to depreciate the cost over several years.
• Mileage: If you drive for business purposes (e.g., to purchase equipment, attend networking events, or for off-site content creation), 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.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your OnlyFans business, you may be able to deduct expenses related to that space (rent/mortgage interest, utilities, etc.). There are specific rules and calculations for this deduction; consult IRS Publication 587.

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 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 earnings over $400.

Closing Tip for New Mexico Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping detailed 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 New Mexico. Proactive tax planning can save you money and prevent headaches during filing season. Don't hesitate to reach out if you have further questions or need assistance with your 2024 taxes!