Summary
The IRS may need to watch OnlyFans content to determine if creators' earnings qualify under the "no tax on tips" law in President Trump's recently passed bill. This bill exempts certain workers from federal taxes on tips, but the inclusion of OnlyFans creators under this exemption is unclear. The IRS faces challenges in defining what qualifies as tips on platforms like OnlyFans.
Key Facts
- The IRS might review OnlyFans content to see if it qualifies for tax exemptions under the "no tax on tips" law.
- President Trump's bill, passed in July, aims to remove federal taxes on tips for eligible workers.
- OnlyFans creators are not currently clearly included in the tax exemption.
- The platform includes different types of content, not just adult material.
- Professions like bartenders and waiters are among those already listed for tax exemptions.
- OnlyFans reported $7.2 billion in spending on the site in 2024.
- The platform has 4.6 million creator accounts globally.
- The IRS's approach to reviewing content and determining exemptions is not yet clear.
