I am new to Onlyfans and have received my 2021 1099-NEC. The amount shown on the 1099-NEC is my net earnings, not my gross (since Onlyfans charges a 20% fee). Could someone please clarify which "category" (when going through the business expense step-by-step) I would add the 20% fee Onlyfans took, so I can receive credit for it? Also, would all of the equipment, clothing, etc I purchased fall under the "supply" category? Thank you in advance for your help.
If your 1099-NEC is showing NET, then you would not deduct the fees as it is already deducted. If your 1099-NEC is showing GROSS figures (including the 20%), then it is deductible. If it shows the gross amount, you can deduct it under commissions.
The clothing purchased you can deduct under supplies.
The equipment (depending on the cost), should be entered as an asset and depreciated. These would be larger purchases (usually more than $200), which last more than one year.
If your 1099-NEC is showing NET, then you would not deduct the fees as it is already deducted. If your 1099-NEC is showing GROSS figures (including the 20%), then it is deductible. If it shows the gross amount, you can deduct it under commissions.
The clothing purchased you can deduct under supplies.
The equipment (depending on the cost), should be entered as an asset and depreciated. These would be larger purchases (usually more than $200), which last more than one year.