It seems like there’s going to be a real eye-opener regarding pornography.
IRS officials may find themselves needing to keep an eye on OnlyFans to figure out what falls under the category of “pornographic activity” as opposed to what might be exempt from President Trump’s tip tax exemption.
In July, the president signed the One Big Beautiful Bill Act which includes a “tipping tax exemption” clause. This legislation has a list of about 70 jobs and professions that qualify, but there’s quite a bit of ambiguity in what it covers.
The list highlights several service-oriented roles often associated with tips, like “dancer” and “digital content creator.” However, anything considered “pornographic activities” would escape taxation.
This broad definition creates an interesting scenario for platforms like OnlyFans, where users can pay for content and interact with adult creators, that ranges from amateur adult films to various niches like foot fetishism.
As Katherine Studley, an OnlyFans creator and an accountant, mentioned in an interview with the New York Times, “Where’s the line? Just because you’re on OnlyFans doesn’t necessarily mean it’s porn. You can also create a cooking or yoga channel.”
The U.S. government has never specifically defined what constitutes pornography, and societal views on the subject have evolved significantly over time.
This lack of clarity could pose challenges for the Trump administration when it comes to denying tax exemptions to all 4.6 million OnlyFans creators, though it’s not clear how many of those are U.S.-based.
This could unintentionally place the responsibility on IRS agents.
Experts suggest that agencies may need to review content on platforms like OnlyFans—even the most peculiar—to decide whether it fits into the “pornographic activity” category.
According to tax preparer and educator Thomas Gorczynski, “Ultimately, it’s going to be a subjective call by an IRS examiner or a tax court judge.” He adds, “Sometimes something is clearly pornographic, but other times you might just think, ‘Well, that’s subjective. Someone might really be into that.'”
OnlyFans and similar platforms feature an eclectic mix of content, with most being behind paywalls. Some creators explicitly label their work as pornographic; others cater to specific fetishes, like the inexplicably popular demand for images of women’s bare feet.
The law specifies that the tax deduction for tips is capped at $25,000, but this does not apply to individuals earning over $150,000 or married couples with joint incomes exceeding $300,000. Interestingly, some OnlyFans creators rake in over $1 million.
