How to handle taxes for affiliate marketing
Contributed article by Katherine Strudley aka “The Only Consultant” from Prisma Tax Group
If you’re an adult content creator, you understand the volatility of earning money online. Social media platforms and algorithms can fluctuate which is why diversifying your income streams is so critical. Relying on a single source of income can be risky, especially as an entrepreneur, so you could consider exploring different revenue streams. We’ve worked with clients who are earning across several paid platforms, selling merchandise, offering social media consulting, and even diving into affiliate marketing. Expanding your earnings like this not only stabilizes your income but also opens up new opportunities for growth and creativity.
Content Creator vs Tax Report?
One of the most common questions we get is how to handle taxes for affiliate marketing, so we’re here to break it down for you. While making money is always a priority, understanding how that income is taxed is just as important for keeping your business running smoothly. have to claim it on your tax returns.
Affiliate marketing is pretty simple: you promote a product or service and if someone makes a purchase through your unique link, you earn commission. For adult content creators, platforms like FansRevenue are excellent for promoting spicy brands that fit your niche. The great thing about affiliate marketing is that it allows you to leverage the following you’ve worked so hard to build, cultivate and maintain, providing an additional income stream without creating new content or products.
Affiliate income is treated like any other self-employment earnings. Yes, affiliate income is taxable even if the company doesn’t send a 1099 form. Since no taxes are withheld from your affiliate earnings, you should consider this income when calculating quarterly estimated tax payments. The good news is that because this income is taxable, you can deduct your business expenses that support your affiliate marketing – yay! These deductions lower your taxable income so make sure you’re tracking everything carefully.
Don’t let taxes be an afterthought. Stay on top of it and watch your business thrive.
About “The Only Consultant”
Originally from Buffalo, NY, Katherine earned her Bachelor degree in Accounting from Niagara University and initially worked in CPA firms right after graduation. The traditional accounting world never felt like the right fit for her so she left accounting to work in government contracting. When the pandemic hit new business opportunities were emerging and Katherine shifted gears starting a social media marketing venture to support local businesses. In mid-2020, she discovered OnlyFans and quickly recognized the enormous potential for content creators to build their own independent careers. With her tax knowledge, she knew these creators would be working as independent contractors and might not feel comfortable seeking help from traditional CPA firms. That’s when Katherine made the decision to quit her full-time job and launch The Only Consultant.
Over the past four years she has assisted hundreds of clients in navigating the complexities of taxes and business management as new entrepreneurs. Through this, she established Prisma Tax Group, offering tax preparation, bookkeeping, business formation, and overall support for small businesses. Katherine’s passion is helping entrepreneurs thrive and grow in a judgment-free environment.
If you’re forging your own path, Katherine and her team are ready to help you every step of the way. Reach out today to learn how Prisma Tax Group can support your unique business journey.
