You have not mentioned when you performed the work--was it in 2019 or 2020? If it was in 2020 you can prepare a 2020 tax return in early 2021. You only made a small amount so you will not owe much--if anything. Onlyfans will not send you any sort of income document so you just use your own records of how much you made. You are an "independent contractor" to the IRS. You will be able to use the Free File software so that you do not have to pay for tax preparation. So check on that software in late January/early February of 2021. You say you have never filed a tax return, so I am going to assume you are young and are someone else's dependent. When you prepare your own tax return, it will be VERY important for you to say on that tax return that you can be claimed as someone else's dependent.
(If you mess up and do not say that, and you file your return before the person who can claim you as a dependent files their return, you mess them up. They will not be able to e-file if you do not mark on your return that you can be claimed.)
Try Free File:
You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit
https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program
https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
"How do I actually pay? Is the money just taken out of my account?"
If you have federal tax due you can pay by mailing your payment with the 1040V voucher, (which has the address printed on it, having the payment taken out of a designated bank account, or you can pay directly on the IRS website.
https://www.irs.gov/payments/direct-pay
https://ttlc.intuit.com/community/tax-payments/help/how-can-i-pay-my-federal-taxes/00/26212
"After I file them, would I be able to forget about it completely since I no longer use the account or make money from it?"
Sorry--no idea how your account with Onlyfans works or what you are to do about it. Ask them.
Was this income made in 2019 or 2020?
If you made this money in 2019, you'll need to purchase the desktop software to file your taxes. I think there's a minimum amount you have to earn in order to be required to file...check out this IRS Tool: Do I need to file a tax return?
If you made this income in 2020, you want to report all your income all at once for Jan 2020-Dec 2020. In January 2021, all your 2020 employers will send you your documents needed to file your taxes.
1. If you're not a W2 employee with this site, your employer would give you a 1099 if you made more than $600. Looks like you won't have a 1099. Yes it's okay. Sometimes people pay me cash for photography and I just jot it down in my notebook! 🙂
2. It's your employers job to provide you with a W2 or a 1099 because you didn't make more than $600, you will not receive a form from them.
3. With other forms from other employers, you can let TurboTax guide you through the questions (or you can go to a tax preparer or use another software.) You can test out TurboTax Online for free and see if you like it. You can electronically file your taxes with tax-prep software, or print and mail your tax return when you're all done.
4. If the IRS says you owe them taxes, you will have to pay the IRS directly. The easiest way for me personally was to pay on their website once TurboTax told me how much I owed. When you sign into the IRS website, they'll have a record of what you need to pay as well----- after...you file your taxes.
5. Forget about your OnlyFans account? Sure! If you create an account with TurboTax, you'll want to remember that login information for the next time you need it.
I hope this helps! 🙂
Let's start simply.
1. If you file a tax return for any reason, you must report all your income, no matter how small. If this is your only income, you must file a tax return and report it if your net profit (income minus expenses) is more than $400. You are expected to keep accurate business records of your income and expenses regardless of whether your clients and payers give you tax paperwork.
2. This is self-employment work. If you report it, you will prepare a schedule C to attach to your regular tax return. Schedule C lists your income and expenses and calculates your profit. This flows to the main form 1040 where it is combined with your other income and deductions to calculate your overall tax bill.
3. Self-employment requires Turbotax online Self-employment version which is the most expensive version of the program. However, if you earned less than $36,000 overall, you can use the IRS Freefile version of Turbotax which includes schedule C for free. If this was 2019 income, then bad news, the FreeFile version was turned off after the Oct 15 final deadline and the only way you can file is using the paid software installed on your own computer from a CD or download. But if this is for 2020, you have plenty of time to plan, and you can use the online version next year between January and April 15.
4. If you report $500 of income but no expenses, the extra tax is going to be about $60-$120, and you won't owe any penalties for not paying in advance. It will probably just reduce your normal refund.
5. If you don't report it, the IRS will probably not find out, since less than 1% of taxpayers are audited. But reporting it is the right thing to do.
Yes it was in 2020, so that would mean you would start the process in 2021? If I’m understanding correctly
@londonbridge wrote:
Yes it was in 2020, so that would mean you would start the process in 2021? If I’m understanding correctly
Yes, you will include this income, along with any other income, on your 2020 tax return, that you prepare in the Spring of 2021 with a deadline of April 15, 2021. The software is usually available starting in mid to late November if you want to get a head start, but the earliest you can actually file is somewhere between January 15 and January 31, depending on how fast the IRS can get ready.
I only made a total of maybe 150 on onlyfans for the year do I still file for taxes?
@RR08 wrote:
I only made a total of maybe 150 on onlyfans for the year do I still file for taxes?
If that is your only income, no, it is below the filing threshold. If you file a return for other reasons, you must include all your income.
Are we supposed to calculate the net pay or the amount charged?
On your tax return, you report your gross income. You also report your expenses and your tax return will calculate the net profit. But you can’t just report your net income yourself, you have to show your work. And some kinds of expenses are deducted using different methods.
I made only 205 for the whole year. Do I have to report it? And how? Yes it was my only income.
If you are referring to income from OnlyFans as others in this thread, that is considered to be self-employment income reported on Schedule C.
However, you also stated that it is your only income. In that case, you are not required to report it or file a tax return. You must have net profit (income minus expenses) from self-employment greater than $400 before you are required to file a return.
@Jadepirt
So I am a college student and only work during the summer but this year I started onlyfans during the fall semester of college to get some extra spending cash for the holidays. I only made about $200 before I deleted it so I won't get a w2 or a 1099. Also, the income from onlyfans went to my boyfriend bank account but it was my onlyfans account with my information and my social security number just paid out to his bank account that we do not share. Do I have to file taxes for onlyfans because my overall net of the year would be more than $400 because of my summer job? Or is it the net of that job (onlyfans) that needs to be $400 to file? Would i file it since it was my information on the account even tho it paid out to my boyfriends bank account that we do not share? Does that still count as part of my net? Will I owe money if I file onlyfans taxes since my earnings were so low? What makes you owe the government money from your taxes?
Whether or not you need to file a tax return depends on how much income you have and your filing status. If the $200 self-employment income is the only income you have for the year, then you do not need to file. If you had additional self-employment income or other sources of income and will be filing a return, then the $200 will need to be included in your return. See the article for more information on filing requirements. Do I need to file a federal return this year?
It does not matter if the income went into your boyfriend’s account, the company has your information as the recipient, and therefore it is your income to report.
Some situations that may cause you to owe money in your taxes are when you have a job that pays with Form W2, but you fail to have enough taxes taken out of your pay. Also when you have income from self-employment, no taxes are taken out of your pay to cover your taxes, that is why at the end of the year you might have a balance to cover your Medicare, Social Security, and Federal and State taxes.