Taxes and Form 1099-K

You're an independent contractor on Fansit. That means you're responsible for tracking and paying taxes on your earnings. Here's what to know.

Form 1099-K

If you earn $600 or more in a calendar year, Fansit sends you a Form 1099-K by January 31 of the following year. The 1099-K reports your gross payment volume — the total FanBucks-equivalent in USD that fans paid to your account, before any chargebacks or fees.

The IRS receives a copy of every 1099-K we issue.

Why $600

The IRS threshold for 1099-K reporting changed multiple times in recent years. Currently it's $600. We use whatever threshold is in effect at the time of filing.

If the threshold rises in the future, we'll continue issuing 1099-Ks at the old threshold to anyone who already received one — for consistency.

What goes on the 1099-K

The 1099-K shows your gross payment volume for the calendar year. This is higher than what you actually cashed out because:

It's calculated in USD using the cash-out equivalent.
It includes all earnings before chargebacks.
It includes earnings still in pending balance at year-end (technically you earned them in that year).

What it does NOT include

The chargeback fees deducted from your wallet.
The platform spread (Fansit's margin).
Refunds issued from your earnings.

What you actually owe taxes on

The 1099-K reports gross. Your taxable income is gross minus business deductions:

Equipment (cameras, lighting, computers).
Software subscriptions.
Internet bill (proportional to business use).
Travel for content shoots.
Wardrobe and props specifically for content.
Professional services (accountant, lawyer).
Promotional / advertising spend.

You report all of this on Schedule C (Form 1040) along with the 1099-K. If your net income is over $400, you also pay self-employment tax (Social Security + Medicare, ~15.3%).

When 1099-K is wrong

Common mismatches:

The 1099-K is higher than what you cashed out because of pending balance at year-end.
The 1099-K is lower than what you cashed out because December cash-outs include November earnings.

Both are normal. Match the 1099-K against your wallet transaction CSV (export from Settings → Payouts → Export) and your bank deposits to reconcile.

Self-employment tax

Self-employment tax = Social Security (12.4%) + Medicare (2.9%) = 15.3% on net earnings.

This is on top of regular income tax. So a high-earning creator easily pays 30–40% combined federal + SE tax on their net Fansit income, before state taxes.

Plan ahead. Make estimated quarterly tax payments if you expect to owe more than $1,000 for the year. The IRS quarterly deadlines:

Q1: April 15
Q2: June 15
Q3: September 15
Q4: January 15 (of the following year)

State taxes

Most U.S. states also tax self-employment income. Rates vary:

No state income tax states: AK, FL, NV, NH (interest/dividends only), SD, TN, TX, WA, WY.
Highest state rates: CA, NY, NJ, OR, MN — can add 8–13% on top of federal.

You report state taxes through your state tax authority alongside your federal Form 1040.

Non-U.S. creators

If you're not a U.S. person, you submit a Form W-8BEN (individual) or W-8BEN-E (business) instead of the W-9.

We don't issue 1099-K to non-U.S. creators — instead, we may apply withholding based on your country's tax treaty with the U.S.

You're responsible for reporting Fansit earnings to your local tax authority based on the rules of your country of tax residence. We don't issue international tax forms.

Sales tax / VAT

For U.S. creators: Fansit handles any sales tax obligations on the FanBucks purchase side. You don't owe sales tax on your earnings.

For EU creators: VAT may apply depending on your residence. Consult a local tax advisor.

Backup withholding

If you fail to provide a valid W-9 (or W-8BEN for non-U.S.), the IRS requires us to withhold 24% of your earnings and remit to them as backup withholding.

To avoid this:

Provide an accurate, complete W-9 in Settings → Tax before your first payout.
Make sure your tax info matches your KYC name.

What we do NOT do

We don't provide tax advice. The above is general info, not advice.
We don't calculate your taxes for you.
We don't withhold income tax unless backup withholding applies.

For specific tax questions, talk to a CPA or tax attorney familiar with adult-creator income. The IRS treats Fansit earnings the same as any other 1099-K self-employment income — no special category.

Recordkeeping

Keep:

Your 1099-K (we send by email and store in your account dashboard).
Your wallet transaction CSVs (export annually).
Your bank deposit records.
Your business expense receipts.

Hold on to all of this for at least 7 years in case of an IRS audit.