Platform fees are one of the most consistently mis-handled deductions in creator taxes. Most creators either miss them entirely or put them on the wrong Schedule C line. This guide covers where they go (Line 10), which platforms itemize them (most do), and the 1099-K nuance that trips up even experienced creators.
What Platform Fees Actually Are
Platform fees come in three structural forms — and the tax treatment differs slightly for each:
Example: Patreon keeps 8–12%; OnlyFans keeps 20%; Twitch keeps 50% of sub revenue
Tax treatment: Deductible on Line 10 IF the fee is itemized on your payout statement. If the platform only pays you the net (and never shows the fee separately), there may be nothing additional to deduct — the fee was never your income.
Example: Stripe 2.9% + $0.30; PayPal 2.89%; platform-embedded processing
Tax treatment: Deductible on Line 10. Usually appears on payout statements as a line item. Sometimes bundled into the platform's total commission.
Example: Patreon Pro plan $0/mo (% only); Substack + Stripe; some tools charge a monthly SaaS fee
Tax treatment: Monthly platform fees you pay (separate from revenue share) go on Line 27a (other expenses) or Line 22 (software/subscriptions), NOT Line 10. Line 10 is specifically for commissions on revenue earned.
Schedule C Line 10 — Commissions and Fees
Schedule C Line 10 is labeled "Commissions and fees." It's the exact line for platform revenue splits — commissions you pay to earn income. This is the most commonly skipped Line 10 entry for creators because the fee is often invisible: Patreon just deposits $880 instead of $1,000, and many creators never realize the $120 fee is a deductible expense.
The test for Line 10: Did you pay or give up a percentage of revenue to a third party in order to earn that revenue? If yes → Line 10.
Don't put platform commissions on Line 27a (other expenses) — they're not miscellaneous business costs, they're commissions. The IRS separation matters for audit clarity and for matching your deduction to the revenue it's attached to. See the full Schedule C expense guide for every line mapped to real creator expenses.
Platform-by-Platform Fee Breakdown
| Platform | Fee Rate | On $10K Revenue | 1099 Reports | Line 10 Deductible? |
|---|---|---|---|---|
| OnlyFans | 20% | $2,000 | Compare the form to your payouts | Yes, if the form includes the fee |
| Patreon | 8–12% + ~2.9% processing | $1,090–$1,490 | Gross pledges | Yes — fee shown on payout |
| Substack | 10% + Stripe 2.9% + $0.30/tx | $1,290+ | Gross subscriber payments | Yes — fee itemized |
| Twitch (subs) | 50% affiliate split | $5,000 | What Twitch pays you | No — never received |
| Twitch (Bits) | Processing fee only | ~$30–$50 | Bits payout | Yes — processing fee |
| YouTube | ~45% Google keeps | $4,500 | Your ~55% payout only | No — not on your 1099 |
| Spotify | Distributor 0–15% | $0–$1,500 | Distributor gross payout | Yes — distributor fee |
| Ko-fi | 0% (free tier) / 5% (Gold) | $0 or $500 | Your payout | Yes if on Gold plan |
Rates as of 2026. Platform fee structures change — verify current rates in your creator dashboard.
How to Read Payout Emails: Gross vs Net
The key question for each platform: does the payout email show gross → fee → net, or only the net amount? Here's how the major platforms present this:
- Patreon: Payout emails show gross monthly pledges, processing fee, Patreon fee, and net deposit separately. The fee total is your Line 10 figure. Annual totals are also available in Creator Analytics.
- OnlyFans: Payout statement in your dashboard shows gross earnings and the 20% OnlyFans deduction separately. Download your payout history as a CSV for the full year.
- Substack: Paid subscription dashboard shows subscriber payments, Substack 10% fee, Stripe processing fee, and net amount per payout cycle.
- Twitch: The 1099 shows gross affiliate/partner earnings. Sub revenue on the 1099 is already your net (50% split is pre-deducted). Bits payout may show separately. Use the Creator Dashboard → Revenue report for the breakdown.
- YouTube: AdSense 1099 shows what Google paid you — your ~55%. No further deduction. If you use a YouTube management company that takes a cut of your AdSense, that management fee goes on Line 10.
The 1099-K Problem: Platform Reports Gross
Starting in tax year 2026, 1099-K reporting thresholds have dropped — more creators will receive 1099-Ks. The consistent confusion: some platforms report gross subscriber/viewer payments on the 1099-K, not what they actually paid you.
When Patreon reports $12,000 on a 1099-K but only deposited $10,400 after fees, many creators report $10,400 (what they received) and get a CP2000 notice because the IRS expected $12,000. The correct approach: report $12,000 gross revenue, then deduct $1,600 in platform fees on Line 10. Net taxable income is $10,400 — identical result, but now your 1099-K matches your reported income.
See the full breakdown in 1099-K phantom income for creators.
How ExpenseBot Tracks Platform Fees
ExpenseBot picks up Patreon and OnlyFans sale, tip and subscriber emails from Gmail, along with Gumroad sale emails and Stripe and PayPal payouts, and adds each one to your Income tab for the amount the email shows. When the email shows both the gross and your cut, or an explicit fee line, ExpenseBot records gross, fee and net separately. When it shows a single number, as most OnlyFans and Patreon notifications do, ExpenseBot never assumes the platform's rate: it suggests one from your existing entries, you confirm it once under Manage platform fees, and every future single-number email from that platform is split from then on.
When you generate your year-end tax report, the fees recorded on your Income tab are deducted on Schedule C Line 10 (T2125 line 8871 in Canada) — no separate expense row to enter. Twitch and Substack work differently: Twitch payout emails may be picked up when they clearly say money was paid to you, but not every one will be, and Substack emails aren’t read as income (a Substack payout sent through Stripe can appear as a Stripe payout) — for those, the CSV route below gives you the complete record. Estimates — confirm with your tax professional.
When a platform does not email a payout breakdown, or the emails are long gone, download the payout history from your creator dashboard and upload it with the Add Income button (labeled Income on a phone). ExpenseBot reads a CSV from Patreon, Ko-fi, Fansly, Gumroad, or another creator platform without you mapping columns, and it also accepts a screenshot or PDF statement. Every row is shown for review before it lands on your Income tab. See how to track creator payouts and platform fees in one spreadsheet.
Get your platform fees onto Schedule C Line 10
ExpenseBot picks up Patreon and OnlyFans sale, tip and subscriber emails from Gmail, and records the platform fee when the email shows it or once you confirm your rate.
See Creator Expense Tracker →Free 60-day trial · No credit card required
Also relevant: OnlyFans tax deductions guide — full deduction list for adult creators. Schedule C expense guide — every line mapped with examples.