Content creators can deduct platform fees on Schedule C Line 10 (Commissions and fees) — but the deductibility depends on the fee structure.
Deductible fees:
- Revenue splits paid before payout: OnlyFans keeps 20%, Patreon keeps 8-12% + processing, Substack keeps 10% + Stripe 2.9%+$0.30. These reduce the creator's gross income before the platform pays out, so they are deductible on Line 10.
- Per-transaction processing fees: Any processing fee charged as a separate out-of-pocket cost is deductible.
- Platform subscriptions/base fees: A Patreon Pro plan or similar flat monthly fee goes on Line 27a (Other expenses) as Software & Tools.
- Twitch Bits processing fees: Deductible because Twitch separately charges a processing fee per Bits transaction.
- Spotify/distributor fees: Distributor takes 0-15% before paying royalties — deductible on Line 10.
Not separately deductible:
- Twitch subscriber revenue split: Twitch keeps 50% of subscriber revenue, but the creator never receives or handles that 50% — it's excluded from gross income, not a deductible expense. Report only the net payout as income.
- YouTube rev share: Google keeps 45% before the AdSense deposit. Same logic — only the 55% deposited is income; there is no separate deduction.
1099-K reconciliation: Platforms like OnlyFans and Patreon issue 1099-Ks for gross subscriber payments, not net payouts. A creator receiving $10,000 in gross payments but $8,000 after OnlyFans's 20% cut will receive a 1099-K for $10,000. The correct Schedule C treatment: report $10,000 gross on Line 1, deduct $2,000 in platform fees on Line 10. Failing to claim Line 10 leads to a CP2000 notice.
ExpenseBot auto-labels payout emails from OnlyFans, Patreon, Substack, and Twitch and separates gross income from fees in the Income tab. See https://www.expensebot.ai/blog/creator-platform-fee-deductions for a full platform-by-platform breakdown.