How to Use This Expense Tracker
This tool helps you identify, track, and quantify all tax-deductible expenses related to your creator business. Here is how to get the most out of it:
- Set your monthly income — This determines your tax bracket and the value of your deductions. The higher your income, the more each deductible dollar saves you in taxes.
- Choose your filing status — Single, married, or head of household affects your tax brackets. If you are married filing jointly, your effective rate may be lower, but your deductions are just as valuable.
- Check applicable expenses — Go through each category and check the expenses that apply to your business. The suggested ranges help you estimate if you are not sure of exact amounts.
- Adjust amounts — The default values are industry averages. Replace them with your actual spending for an accurate picture. Even small expenses add up — a $10/month subscription saves you $3-$4 in taxes annually.
- Review your tax savings — The summary shows your total deductions, estimated tax savings, and the effective discount you are getting on business expenses. This is money that stays in your pocket instead of going to the IRS.
Tax-Deductible Expenses Every Creator Should Track
The IRS allows you to deduct "ordinary and necessary" business expenses. For content creators, this covers a surprisingly wide range of spending. The key is that the expense must be directly related to or necessary for your content creation business. Here are the categories most creators overlook:
- Equipment and technology: Cameras, phones, computers, lighting, tripods — any equipment you use to create content is deductible. Expensive items over $2,500 may need to be depreciated over several years rather than deducted all at once, but Section 179 allows many creators to deduct the full amount in year one.
- Content production costs: Outfits, lingerie, makeup, skincare, hair styling, props, and set decoration are all deductible when used for content. Keep these expenses separate from personal purchases — buying a dress you only wear on camera is 100% deductible, but a dress you also wear to dinner is not.
- Software and subscriptions: Editing software, scheduling tools, cloud storage, VPN services, analytics platforms, and link-in-bio services are all necessary business tools. Even small monthly subscriptions add up to meaningful deductions over a year.
- Marketing and promotion: Paid ads, shoutouts, professional photography, website costs, and any money spent promoting your content is fully deductible. Marketing is an investment in growing your business, and the IRS recognizes that.
- Health and wellness: If you are self-employed, health insurance premiums are deductible. Gym memberships can be deductible if maintaining your physique is directly related to your content. Therapy and mental health costs related to work stress may also qualify.
The Home Office Deduction for Content Creators
The home office deduction is one of the most valuable — and most misunderstood — deductions available to creators. If you create content at home, you likely qualify. Here is how it works:
- Regular and exclusive use: The space must be used regularly and exclusively for business. A dedicated content room, studio, or office qualifies. A corner of your bedroom that you also sleep in does not — unless that specific area is used only for work.
- Two calculation methods: The simplified method gives you $5 per square foot, up to 300 square feet (max $1,500/year). The actual expense method lets you deduct the percentage of your home used for business (rent, utilities, insurance, repairs) — this often produces a larger deduction.
- Example calculation: If your apartment is 800 square feet and your dedicated content space is 120 square feet, that is 15% of your home. If your total housing costs (rent + utilities + insurance + internet) are $2,000/month, you can deduct $300/month ($3,600/year) as a home office expense.
- Renters qualify too: You do not need to own your home. Renters can deduct the business-use percentage of their rent, utilities, and renter's insurance.
Equipment Depreciation: How to Deduct Big Purchases
When you buy expensive equipment — cameras, computers, lighting setups — the IRS gives you options for how to deduct the cost. Understanding these options can save you thousands:
- Section 179 deduction: This lets you deduct the full cost of qualifying equipment in the year you buy it, up to $1,160,000 (2023 limit). For most creators, this means you can deduct your entire camera setup, computer, and lighting gear in one year.
- Bonus depreciation: For items that do not qualify for Section 179, bonus depreciation allows 80% first-year deduction (2023 rate). This percentage decreases each year, so buying equipment sooner rather than later maximizes your deduction.
- Standard depreciation: If you prefer to spread the deduction over time, standard depreciation lets you deduct the cost over 5-7 years for most equipment. This can be useful for smoothing out your tax bill across multiple years.
- Practical example: You buy a $2,000 camera in March. Under Section 179, you deduct the full $2,000 this year. At a 30% combined tax rate, that saves you $600 in taxes — effectively making the camera cost $1,400. Always buy business equipment before December 31 to capture that year's deduction.
Why Proper Expense Tracking Saves You Thousands
Most creators leave money on the table simply because they do not track expenses consistently. The financial impact of proper expense tracking is significant and compounds over time:
- The average creator saves 15-25% on their tax bill through proper expense tracking. A creator earning $50K who identifies $8K in deductions saves $2,400-$3,000 in taxes. At $100K income, the savings are $5,000-$8,000+.
- Track expenses monthly, not at tax time. Trying to reconstruct a year of expenses in April leads to missed deductions. Set a monthly calendar reminder to review and categorize your business spending.
- Keep digital records of everything. Photograph receipts immediately and store them in a dedicated folder. Bank and credit card statements serve as backup documentation. The IRS accepts digital records.
- Separate business and personal finances. Get a dedicated business bank account or credit card. This makes expense tracking dramatically easier and provides clean records if you are ever audited.
- Consider quarterly estimated tax payments. If you owe more than $1,000 in taxes for the year, the IRS expects quarterly payments. Accurate expense tracking helps you calculate these correctly and avoid underpayment penalties.
Frequently Asked Questions
What expenses can OnlyFans creators write off?
Common deductions include phone and internet bills (business-use percentage), camera equipment, lighting, tripods, computers, outfits and lingerie used for content, makeup and skincare, hair styling, props and set decoration, home office space, editing software subscriptions, scheduling tools, VPN services, agency management fees, marketing costs, paid promotions, professional photography, and website hosting. The key requirement is that the expense must be "ordinary and necessary" for your content creation business. Keep all receipts and records to substantiate your deductions.
How much can I save on taxes with deductions?
The average content creator saves 15-25% on their total tax bill through proper expense tracking and deductions. The exact savings depend on your income level and tax bracket. A creator earning $50K per year who tracks $8K in legitimate business deductions saves roughly $2,400-$3,000 in combined income and self-employment taxes. At $100K income, tracking $15K in deductions can save $5,000-$8,000+. The higher your income, the more valuable each deductible dollar becomes because you are in a higher tax bracket.
Do I need receipts for tax deductions?
Yes. The IRS requires you to substantiate all business deductions with records. Acceptable documentation includes original receipts, bank and credit card statements, invoices, and canceled checks. Digital records are fully accepted — photographing receipts with your phone and organizing them in a cloud folder is sufficient. For expenses under $75, a bank statement showing the charge is generally enough. For larger purchases, keep the original receipt. If you are ever audited, you will need to prove that each deduction was a legitimate business expense.
What percentage of my phone bill can I deduct?
You can deduct the business-use percentage of your phone bill. If you use your phone 60% for business purposes — content creation, managing DMs, social media marketing, client communication, scheduling — you can deduct 60% of your monthly phone bill. To justify the percentage, keep a simple log of how you use your phone for one representative week, then apply that percentage to the full year. Most content creators legitimately use their phone 50-70% for business. The same logic applies to your internet bill — deduct the percentage used for business activities like uploading content, managing your page, and marketing.