OnlyFans Creator Taxes in Kentucky - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a OnlyFans Creator in Kentucky

Kentucky’s Bluegrass spirit extends to its entrepreneurial landscape, and as an OnlyFans creator, navigating the tax obligations of self-employment is crucial for continued success. Income earned through platforms like OnlyFans is considered self-employment income by the IRS, meaning creators are responsible for reporting earnings and paying associated taxes.

Federally, all income received through OnlyFans must be reported on Schedule C (Profit or Loss from Business) with your Form 1040. If net earnings (income minus business expenses) exceed $400, self-employment tax applies. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Kentucky Handles Gig Worker Taxes

As a resident of Kentucky, a state income tax return is required regardless of income level. Kentucky operates under a flat income tax rate, currently at 4.0% for the 2025 tax year. This means all taxable income is taxed at the same rate. Self-employment income reported on your federal Schedule C flows to Form 740, Kentucky Income Tax Return. The primary form for self-employed individuals to report income and calculate Kentucky income tax is Form 740-NP, Kentucky Nonresident/Part-Year Resident Income Tax Return, even if you are a full-year Kentucky resident, as it's used to calculate income subject to self-employment tax. Kentucky also requires the payment of estimated taxes quarterly if your expected tax liability exceeds $500. Failure to pay estimated taxes can result in penalties. Kentucky’s Department of Revenue offers resources and tools to help navigate these requirements, including online filing options. It’s important to note that Kentucky allows for a deduction for federal income taxes paid, which can reduce your state tax liability. Furthermore, Kentucky conforms to many federal deductions, meaning deductions taken on your federal Schedule C may also be applicable on your Kentucky return. Keep detailed records of all income and expenses to accurately complete your state tax return.

For more information and resources, please visit the Kentucky Department of Revenue: https://revenue.ky.gov/

Key Tax Deductions for Home-Based OnlyFans Creators

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means the area is only used for your OnlyFans work – no guest rooms doubling as filming locations. “Regular use” means you use the space consistently for your business. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of equipment essential to your OnlyFans business is deductible. This includes computers, cameras, lighting, microphones, and any necessary software subscriptions like Adobe Creative Cloud, video editing software, or website hosting.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. For example, if 75% of your internet usage is for OnlyFans content creation and promotion, you can deduct 75% of your internet bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for any trips taken specifically for business purposes, such as meeting with collaborators, attending industry events, or purchasing supplies.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax covers both Social Security and Medicare contributions. Employees have these taxes withheld from their paychecks, but as a self-employed individual, you are responsible for paying both the employer and employee portions. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).