IRS officials may face the challenging task of evaluating explicit content on platforms like OnlyFans to determine what qualifies as “pornographic activity” under former President Trump’s tax exemption for tipped income. The provision, part of the One Big Beautiful Bill Act passed in July, eliminates taxes on tips for nearly 70 specified professions—including dancers and digital content creators—but excludes work involving pornography.
This ambiguity leaves room for interpretation, as platforms such as OnlyFans host a wide spectrum of content, from cooking tutorials to explicit material. Accountant Katherine Studley, who works with OnlyFans creators, noted the blurred lines: simply using the platform doesn’t inherently denote pornography. The U.S. government has never formally defined pornography, and societal norms around it continue to shift.
The lack of clarity could place the burden on IRS agents to individually review creators’ content, however niche or unconventional, to assess its tax status. Tax expert Thomas Gorczynski emphasized the subjectivity of such determinations, suggesting examiners might encounter gray areas where personal interpretation becomes necessary.
While the tax break caps at $25,000 in deductible tips, high-earning creators—some making over $1 million—would be ineligible if their income exceeds $150,000 (or $300,000 for couples). The IRS has yet to outline how it will navigate these assessments, leaving both creators and auditors in uncharted territory.