Taxes and records for adult content creators… what do we need to know

Not sure what taxes look like when selling adult content. We take payments through Cash App business and PayPal. We track what we spend and what we make, but there’s probably more to it, right?

Make sure your business and personal expenses never mix. Keep receipts for everything.

If the IRS audits you, you’ll need to prove what’s a legit business expense. They probably won’t be familiar with how things work in your industry, so clear records are your best defense.

Also, good records help you figure out what’s actually making you money and what’s not.

(Not sure how strict audits will be with the new administration, but do you really want to risk it?)

@Zion
Yeah, explaining that 180 pairs of panties were for business and not personal use would be… interesting. At that point, I assume we just hand over everything we have and hope for the best?

Harley said:
@Zion
Yeah, explaining that 180 pairs of panties were for business and not personal use would be… interesting. At that point, I assume we just hand over everything we have and hope for the best?

You can’t write off underwear.

@Florian
Even if we sell them? I figured anything used for content or sales would count.

Harley said:
@Florian
Even if we sell them? I figured anything used for content or sales would count.

If you’re actually selling them, then yes, that’s different.

I wouldn’t count them as a content-related expense, though.

@Florian
Got it, my bad for not being clear.

Harley said:
@Florian
Got it, my bad for not being clear.

I wonder if IRS auditors ever have to ask creators about used clothing sales.

@Florian
What about when people request specific colors or styles for custom videos? Would that count as a business expense? Just to clarify, we do sell them too.

Harley said:
@Florian
What about when people request specific colors or styles for custom videos? Would that count as a business expense? Just to clarify, we do sell them too.

This is where things get tricky. You can’t write off stuff like clothes or haircuts just because they’re used for work. There was a case where a news anchor tried to write off suits and haircuts—court said no because he could wear them outside of work.

That said, influencers and content creators are in a bit of a gray area. If you can prove the items are ONLY used for business, you might be able to count them as expenses. Some tax professionals would allow it, some wouldn’t. And if you get audited, you’d have to make your case.

Honestly, influencers need to push back on audits to get clearer rules. Right now, the line is blurry.

@Griffin
Makes sense. Thanks for the insight!

Harley said:
@Griffin
Makes sense. Thanks for the insight!

Yeah, it’s one of those ‘depends on the auditor’ situations.

Harley said:
@Florian
What about when people request specific colors or styles for custom videos? Would that count as a business expense? Just to clarify, we do sell them too.

No, because you could wear them outside of work. Same as anyone who dresses up for their job.

@Florian
So what about work uniforms? My boss buys us work shirts every year and counts that as an expense. Illegal?

You’ve got the basics down. Keep all receipts, track income carefully, and consider opening a separate business bank account—it’s not required, but it makes life easier. You should also set aside about 25% of your income for taxes, possibly more depending on where you live.

@Darwin
We already have a separate account for business income. Setting aside 30% just to be safe. Appreciate it!

Don’t forget you have to pay estimated taxes every quarter, not just once a year. If you don’t, you could get hit with penalties and interest.

Reeve said:
Don’t forget you have to pay estimated taxes every quarter, not just once a year. If you don’t, you could get hit with penalties and interest.

Hadn’t even thought about that. Do I just send payments directly to the IRS? Guess I could look it up, but thanks for the heads-up!

@Harley
Yep, online payments are easiest. Check out Form 1040-ES for how to calculate your estimated taxes. Due dates are April 15, June 15, September 15, and January 15.

@Reeve
Makes sense. Might just have extra taken out of my full-time job paycheck to cover it.