The Internal Revenue Service is facing an unusual challenge as it works to enforce a new federal tax rule tied to tips—one that may require agents to review content posted on OnlyFans.
The issue stems from a recent amendment included in a broader tax package passed earlier this year, which allows eligible workers to deduct up to $25,000 in qualifying tips annually from 2025 through 2028.
According to Newsweek, the change was designed to benefit workers in jobs where tipping is considered customary. While tips are still taxable income, the deduction significantly reduces the tax burden for qualifying earners.
Where things get complicated is defining what counts as a “tip,” and who qualifies to claim the deduction. In guidance released this fall, the Treasury Department outlined nearly 70 eligible occupations, including “digital content creators,” “entertainers,” and “performers.”
On its face, those descriptions could include creators on platforms like OnlyFans, where fans frequently leave voluntary payments labeled as tips.
However, the law also contains a key exclusion: income derived from prostitution or “pornographic activity” does not qualify for the tip deduction. That carveout has raised practical questions about enforcement—especially on a platform known for adult content but also home to fitness trainers, chefs, and lifestyle influencers.
According to The New York Times, determining whether tips earned on OnlyFans qualify could require IRS examiners to review creators’ actual content during audits. That would allow agents to decide whether the material crosses the line into disallowed pornographic activity or falls into non-explicit categories that might still qualify.
“Just because you’re on OnlyFans doesn’t mean it’s pornographic,” said accountant Katherine Studley, who works with multiple creators. “Some people use the platform for cooking, yoga, or other entirely non-sexual content.”
The challenge is that the IRS has not formally defined what constitutes “pornographic activity” for tax purposes. Tax professionals say that a lack of clarity could lead to inconsistent enforcement, with determinations hinging on subjective judgment by individual agents or, ultimately, tax courts.
OnlyFans’ scale further complicates the situation. Forbes reported that users spent $7.2 billion on the platform in 2024. The company also disclosed having more than 4.6 million creator accounts and hundreds of millions of user accounts worldwide, though not all are based in the U.S.
Some creators have argued that enforcement would be impractical, pointing out that tips often come from a wide range of content, including posts as mild as photos of feet. As tax preparer Thomas Gorczynski put it, “Sometimes it’s clearly pornography. Other times, it’s subjective.”