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View Full Version : Oh me oh my so many tax forms... (US estimated taxes and dancer tax returns)



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Melonie
06-09-2011, 03:41 AM
^^^ correct a combined estimated tax payment but separate annual tax returns.

I've never used the online payment ... because I feel much more secure being able to show the IRS a cancelled check for the payments if ever necessary.

As to federal, state and city tax rates if your annual earnings are in the $75k ballpark and you are single, a wild guess would go something like this ...

federal income tax plus SSI tax 20%

New York State tax 6%

New York City tax 2%

New Jersey State tax 4%

of course when you file tax returns next year any income tax you paid to NY State and NY City will become a credit against the New Jersey state income tax you'll have to pay.

sunshine16
06-09-2011, 07:10 PM
Thank you SO SO Much! Saved a lot of frustration lol!

4everresolutions
07-19-2011, 05:39 AM
Laurisa or Melonie - could you repost the image of the tax cheat sheet? Would be most helpful. Thanks!

Melonie
07-19-2011, 09:17 AM
^^^ unfortunately, I can't repost that 'cheat sheet' since it was hosted on a 3rd party web server that deleted it. If Laurisa is still around, perhaps she has a copy on her desktop computer that could be reposted.

Laurisa
07-19-2011, 09:49 AM
I don't have the image saved on this computer, but luckily I keep meticulous notes and have a hard copy in my 'taxes' folder.

I'll recopy the information:

Tax information for the self employed

Tax Guide: www.irs.gov/publications/p334/index.html
(Check for an updated guide)

Quarters for a calendar year:
Quarter 1: Jan 1 - March 31. Payment Due Date: April 15 (may be April 18 now)
Quarter 2: Apr 1 - May 31. Payment Due Date: June 15 (may be June 18 now)
Quarter 3: June 1 - Aug 31. Payment Due Date: Sept. 15 (may be Sept 18 now)
Quarter 4: Sept. 1 - Dec. 31. Payment Due Date: Jan. 15 (may be Jan. 18 now)

{ adding 2 cents - normal date is 15th of month but gets bumped to next normal business day if 15th falls on a weekend / holiday - Mel }

*Recommended software: Turbo tax home and business

Tax forms:
~1040-ES - Federal income tax payments & calculations. Send: Q1, Q2, Q3, Q4
~1040 - Federal income tax return. Send: April 15 (possibly April 18 now)
~1040 Schedule C - Business earnings & expenses, sent with 1040 and MI-1040. Send: April 15 (possibly April 18 now)
~MI-1040 ES - State income tax payments & calculations. Send: Q1, Q2, Q3, Q4
~MI-1040 - Michigan income tax return. Send: April 15 (possibly April 18 now)
^^These forms cover federal, state, personal, and self employment taxes and returns.
*1040, MI-1040, AND 1040 Schedule C can be sent April 15 (possibly April 18 now) as long as you paid your Q4 taxes by Jan. 15 (possibly Jan. 18 now).

{ yet another 2c - the above 'MI' forms are for Michigan state income tax. Other states that also levee a state income tax will have different forms with equivalent purposes i.e. estimated state tax payments & year end state tax return - Google them - Additionally a few cities also levee a city income tax and also have their own forms for equivalent purposes - Mel }

EIN = Employer identification number, aka federal tax ID number. You can apply online for an instant EIN at www.irs.gov.

{ another 2 cents - for unincorporated 'sole proprietor' dancers your SS# can be used as your tax ID number - Mel }

1099-MISC = Clubs can send out a 1099-misc form to represent amounts they paid to you that customers originally charged to their cards. Note: If you receive a 1099-misc then you should have appropriate Schedule C line entries explaining the 1099-misc amount dollar-for-dollar. The club will sent the 1099-misc to the IRS and state tax agency, and you do not fill out the 1099-misc further.

{ yet another 2c - clubs have until early March to mail out 1099's so don't attempt to file end of year tax returns any sooner than the middle of March unless you are ABSOLUTELY sure your club will NOT be sending out a 1099 - Mel }

That's everything I have written down that I made into an image originally, I hope that helps.

-Laurisa

{ huge thanks for reposting this Laurisa - Mel }

~

sammii
08-20-2011, 08:02 PM
edited.

Laurisa
08-21-2011, 02:32 AM
There is no tax bracket in which you pay 50%, even if you are filthy stinkin' rich.

Generally, if you make under $20,000/year (regardless of what state you live in) then you will pay a very small percentage of what you make.

I'm too tired to look up the rules for your state, but your calculations seem to be accurate--or possibly even too high. I wouldn't expect you to pay any more than $1,500 including the fee for a tax analyst.

sammii
08-21-2011, 02:38 AM
edited.

Laurisa
08-21-2011, 02:42 AM
I'm fairly certain you would only pay the state income tax to the state you reside in.

sammii
08-21-2011, 02:45 AM
Okay, thanks again. :)

Melonie
08-21-2011, 05:21 AM
^^^ with only a $4,400 total expected income for all of 2011, your 'tax bracket' is probably going to be so low that you won't have to pay any federal or state income taxes at all !!! Now if you were talking $44,000, it would be an entirely different story.

However, the Social Security / medicare tax is a flat 15.3% regardless of the amount of income earned ( up to $106,000 per year anyhow ). Thus you will get hit with a $673 tax bill for that.

On the positive side, you may be eligible for some 'refundable tax credits' that can be used to reduce the $673.



There is no tax bracket in which you pay 50%,

For the record, depending on what state you live in, how much you earn, and how many tax credits and deductions you can or can't take, there ARE circumstances where the combined effective tax rate can approach 50% for 'self-employed' persons. However, for a theoretical full time dancer earning say $400 a night = $100,000 per year, who is not married, who has no children, and who does not own a home, the average tax rate is likely to be on the order of 15.3% SSI tax plus 22.4% federal income tax plus 5% state income tax ( Illinois ) totaling 42.7% !

And that's while the GWB 'tax cuts' are still in effect for 2011.



I'm fairly certain you would only pay the state income tax to the state you reside in

Again for the record, you have to pay state income tax to any state that you earned money in - regardless of your state of legal residence. When I was still dancing on the road it was fairly common for me to have to file 6 or 7 state tax returns. You don't get double taxed though because the home state tax return allows the claiming of credits for income taxes paid to the other states.

sammii
08-21-2011, 02:28 PM
Thank you, Melonie!! I really appreciate the help. It's good to know that I'll be able to afford taxes during tax time.

CCRider
03-12-2012, 07:39 PM
This is very helpful, but I am still kind of confused. I started working last May. I am working on filing my taxes. I've filled out Schedule C, etc etc. BUT I never did quarterly estimated payments. I have yet to file any. Am I screwed for last year because I didn't do it? And, am I understanding correctly that I have until April 15 to file my 1st quarter 2012 estimated payment??
Thanks for your help. I am confused because it's very hard to find into for people who have no 1099s. I just want to file my taxes, jeez, why do they make it so difficult?

Laurisa
03-13-2012, 06:52 AM
Since you started working in 2011 you didn't have to file estimated payments, it's good practice but not necessary. You'll file your 1040 and then your state return, use the schedule see on your federal 1040, and then the IRS will send you quarterly estimated payment vouchers and you pay via 1040-es.

If you are doing your taxes by the book then you don't need a 1099 to file. Not having a 1099-misc gives you a little wiggle room for error (if you accidentally undercalculate what is due by $500-$1000 to example).

Since you started working you should have been tracking your earnings somehow (in a book, in a computer program) as well as your expenses (with receipts in case of an audit). You can either add the numbers up yourself and e-file or file by mail, or drop your receipts and numbers off with an accountant and pay them $100-200 to do the math for you/submit your tax forms.

That is how you do taxes without a 1099. A lot of adult industry workers do not get 1099s and that is how they file.

If you failed to keep an accurate record of what you made then estimate. You can look at your bank deposits, major purchases, credit card transactions, check history, etc to get an idea of what you made (also savings accounts, cash on hand, IRA, investments). If you don't have an exact amount then estimate 'high' so that if you are audited the IRS can't say you underpaid. Keep in kind their methods of estimating what you made will be based on what they can track (the things I listed...paper trail) and your home, assets, etc.

If you didn't track expenses then don't deduct a whole lot because if you are audited it will really fuck you over. Only deduct a small amount of what you can prove. You'll probably lose money this year if you didn't keep good records, but you can start fresh in 2012.

duttywine
03-22-2012, 04:10 PM
I am so confused. Does anyone have a tax guide for dummies or something? :S

Melonie
02-11-2013, 02:55 PM
^^^ it's called 'hire a CPA' !!!

For better or worse, the vast majority of exotic dancers, and virtually all camgirls, are 'business owners / operators' rather than employees. As such, there is no separate 'employer' whose payroll service / accountant withholds and sends in estimated taxes out of employee weekly paychecks. There is no separate 'employer' whose payroll service / accountant calculates probable effective tax rates in order to withhold the proper amount of gross earnings from each weekly paycheck. As a 'business owner / operator' you must do these things for yourself. And there is no way to simplify the IRS requirements for filing 'business' taxes.

nantiabrown
07-22-2013, 07:27 AM
If you live in the US and you work as a self employee then you have to pay income tax, self employment tax and some other taxes too? That means that more than half of your money are taken by the gov? But you can actually take back some of those money?

Melonie
07-22-2013, 08:42 AM
^^^ Again it varies from one US state / city to another. But when I was working in Manhattan I wound up paying 15.3% social security + medicare tax, plus somewhere around a 28% US federal income tax, plus somewhere around 6% NY state income tax, plus yet another 2% New York City income tax ... which indeed added up to more than 50% of my earnings. Of course, I was single and earning big money at the time, which sent me into the higher tax brackets. If I had been married, had lots of children, had purchased a home with a mortgage loan, had invested in NY tax free bonds etc, my taxes would have been lower. And had I been earning decent money instead of big money, my tax rates would have been reduced substantially due to lower tax brackets.

You can see the US federal tax brackets at

and the NY state tax brackets at

^^^ both the US federal and NY state income tax rates have increased since I worked in Manhattan, and the NY city income tax rate increased from 2% to 3% as well.

bbwchristyminx
11-23-2013, 08:59 PM
I know I'm years late to seeing this post, but you are heaven sent! I would be FOREVER thankful if you could help me even just a little bit. I webcam full time and don't make much money (usually $400-$500 per week) and i was told i shouldn't owe quarterly just yet because i started 3 months ago. I can't seem to find a list of deductions for webcam models and i don't want to mess up and get fined cause i can't afford it. Part of me wants to pay quarterly just to play it safe but I do not comprehend taxes for the life of me and i try so hard to understand but i can not grasp the concept for the life of me. I am aslo having trouble finding an accountant or someone who can help me in las vegas. Also is i heard i can deduct a portion of rent since i work from home? anyway, sorry for this super long post but my heart skipped a beat when i came across all your post! xox

bbwchristyminx
11-23-2013, 09:47 PM
i seen you are located in Cyprus, where exactly is that? the company i webcam on i believe is located there :)

jess1
01-29-2014, 12:18 PM
Okay, I'm pretty sure I should ask my question here instead of making a new thread! (I've read the FAQs and used the search engine)
Anyway, hi all, I'm new here and found out about camming at the beginning of this year.. I've done some research, filled out forms, and now I'm all ready to start!
However before I start, I have questions about taxes and laws. First I should say I'm not too concerned about people finding out that I will be camming.




I want to work with Streamate. I am ready to start, but I am curious about taxes. I know I would be considered an independent contractor and have to pay quarterly taxes. Since I am an independent contractor, do I have to get a business license?
Also, let's say I start working on SM in February. I guess I will have to file my first quarterly taxes before April 15?


I know laws vary by state (I am from Ohio). I am worried about breaking any laws by being a camgirl. Do I have to have a business license? Do I have to form an LLC? Also, am I automatically a sole proprietor even though I didn't fill out any forms? Should I get an EIN? Do I have to have a reason to get an EIN, or can I just get one?
Has anyone ever gotten into trouble - with the IRS or the law in their state - for being a camgirl?




I know, I have a LOT of questions. I searched this Forum and Google for help. But I feel like I won't be satisfied unless someone personally addresses my concerns... Thank you :)

Melonie
01-29-2014, 01:13 PM
I'll try to provide a few quick answers ...


I know I would be considered an independent contractor and have to pay quarterly taxes.

yes technically speaking you would be required to self-withhold 20-30% of your independent contractor earnings, and make quarterly estimated tax filings / payments to the IRS.


do I have to get a business license?

usually no ... but a couple of states and a few cities are 'weird' about requiring business licensing


I start working on SM in February. I guess I will have to file my first quarterly taxes before April 15?

technically speaking, yes you would need to keep track of your total earnings between January 1 and April 1, and send an estimated tax voucher + a check to the IRS by April 15th.


Do I have to form an LLC? Also, am I automatically a sole proprietor even though I didn't fill out any forms? Should I get an EIN? Do I have to have a reason to get an EIN, or can I just get one?

No, you can operate as a non-incorporated sole proprietor business using your own social security number. This avoids the costs and complexities of forming an LLC or S-Corp ( and obtaining / using an EIN ), but also makes the 'paper trail' of having worked in the adult industry easier for others to follow. If you're not worried about future 'paper trail' consequences, then there's no real motivation for incorporating or using an EIN.


Has anyone ever gotten into trouble - with the IRS or the law in their state - for being a camgirl?

Camming is legal work. The only problems I have heard of have either involved failure to report camming income, or running afoul of some local ordinance / tenant's association rules etc. which restricts ability to 'operate an adult business' from a residential area.

MissKelley
02-03-2018, 06:56 PM
So I like most dancers have a small side job to placate my family and the public, do I need to file one tax refund for being self-employed as a dancer and then employed as a worker or can it all go on one form? I'm a baby stripper so I'm nervous about my upcoming taxes even though I keep a log of what I buy for dancing and its costs/ product numbers/ date/ etc.
Any help is more than welcome.

KatyBoleyn
02-04-2018, 02:30 PM
So I like most dancers have a small side job to placate my family and the public, do I need to file one tax refund for being self-employed as a dancer and then employed as a worker or can it all go on one form? I'm a baby stripper so I'm nervous about my upcoming taxes even though I keep a log of what I buy for dancing and its costs/ product numbers/ date/ etc.
Any help is more than welcome.

It all goes to the IRS as one package.

Your wages go on your 1040 and your self-employment side income goes on your Schedule C. The Schedule C income gets added back to your other income on the 1040 towards the end of the form where it asks. I highly recommend Turbotax and just follow the steps and answer the questions, or take all your stuff into an HR Block.

Ladycaxe
05-26-2018, 02:55 PM
omg I'm sorry but can we do this in simpler terms
::: where should I go to file my taxes. anywhere online? any IRL recommendations (Vegas for me)
thats really I wanna know. I'm claiming dyslexia

Ladycaxe
05-26-2018, 02:57 PM
also none of the clubs I've worked at has never claimed responsibility . no w2. no 1099 no 1040 nothing. most never even took my ssn. except for my current club, but they don't give us any forms. so like, where do I go from there. .. thank u

Rispy_Girl
02-07-2020, 02:29 PM
There's a reddit thread to help with taxes. https://www.reddit.com/r/stripper/comments/f0cu1q/tax_help_for_strippers_escorts_sw_freelancers_and/

xxxGothBarbie
05-03-2020, 06:58 PM
So quick question about filing my taxes. I only got 2 1099s for 2019 even though I earned more on 2 other sites. I wanted to report it but have no idea really how to? I'm gonna use the irs site to free file it. I saw something about a 1040? Clueless LOL

Thanks! ;)

KatyBoleyn
07-30-2020, 08:07 AM
So quick question about filing my taxes. I only got 2 1099s for 2019 even though I earned more on 2 other sites. I wanted to report it but have no idea really how to? I'm gonna use the irs site to free file it. I saw something about a 1040? Clueless LOL

Thanks! ;)

On your Schedule C or Schedule C-EZ, there is a place at the end where you simply list your "Other Income". You put there anything not covered by your 1099s.

Company A ---- $400
Company B ---- $500
Individual Sales ---- $1000

The IRS generally won't care what you write as a source, you can put "Bank Robbery" or "Coke Dealing" on a line and they can't say anything about it, so long as you accurately report the net income or profit from that.

While nobody can pull those records without a hefty court procedure, you still may need to show your tax returns voluntarily for certain things (like obtaining a mortgage), so you can sanitize the wording a bit.