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. It can be higher than what reached your bank that year because:

• It's calculated in USD at the $0.01 per FanBuck payout rate.
• It includes all earnings before chargebacks.
• It includes earnings from December 16–31, which are paid on January 10 of the next year (you earned them in that year).

What it does NOT include

• The chargeback fees deducted from your earnings.
• 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 your deposits because late-December earnings are paid in January.
• The 1099-K is lower than your deposits because January's deposits include the previous December's earnings.

Both are normal. Match the 1099-K against your transactions CSV (export from Earnings → Transactions) 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

Payouts currently need a W-9 and a U.S. bank account, so creators who can't provide both can't receive payouts yet. We don't accept Form W-8BEN or W-8BEN-E today.

Wherever you live, 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

A W-9 is required before you can add bank details, so a payout never goes out without one — without a W-9 on file, payouts are held and roll forward until you add it.

If the IRS tells us the name and TIN on your W-9 don't match its records, federal rules can require us to withhold 24% of your payouts as backup withholding until it's fixed. To avoid this:

• Fill in your W-9 accurately in Earnings → Payouts.
• Make sure the name on it matches your verified legal name and your TIN.

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 transactions CSVs (export from Earnings → Transactions at least once a year).
• 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.