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Cam_Model_Jess
10-11-2013, 06:19 PM
I haven't decided whether or not I'll be purchasing insurance. Does anyone know if we're paying 1/4 of the tax penalty each quarter or if the whole penalty is due with 1st quarter payment? I'd like to adjust my weekly savings to reflect the penalty just in case.

Melonie
10-11-2013, 06:30 PM
^^^ technically speaking, if you haven't purchased 'qualified' health insurance by the first of April, you have gone 3 months without 'qualified' coverage and thus owe 100% of the new IRS tax penalty.

ksage13
10-15-2013, 03:48 AM
I think the positives outweigh the negatives when it comes to camming. We may pay a bit more when it comes to taxes, not to mention the responsibility of filing and paying them (as opposed to automatically being taken out of a check)... but we also get to choose our schedule, work from home, etc.

takiaya
10-31-2013, 12:27 PM
Can you file off computer equipment you bought this year on your taxes if it broke? XD or can you only file off still working equipment?

Snowy0Star
10-31-2013, 12:32 PM
Can you file off computer equipment you bought this year on your taxes if it broke? XD or can you only file off still working equipment?

u can still clam it just because it broke didnt mean u didnt pay for it .

Snowy0Star
10-31-2013, 12:34 PM
can u wright off ur accountants service fees when you file? isnt paying ur accountant to do the taxes a business expense ?

Melonie
11-01-2013, 08:58 AM
^^^ yes accountant's fees are considered to be 'professional services', and indeed are 100% tax deductible via Schedule C

goddessc
11-01-2013, 07:38 PM
Tax question!
I have lived in 3 states so far this year.
I started out 2013 in California living with my parents where I was doing 1099 cam girl stuff until March
Then moved to Oregon for a vanilla job and still making money off 1099. My employer paid for my rent
Finally in August I moved to Washington due to vanilla job ending and still doing 1099 and paying 100% of my rent, electricity, internet, etc

So my questions are:
What states am I required to file state taxes?
And if I were to deduct a portion of my rent, utilities due to using them for business purposes at my home in Washington, does that mean I'm now required to file a Washington return?

RaeRae
11-01-2013, 09:50 PM
I'm not sure exactly how it works in other states, but I know that in you lived in a random state for part of the year but moved to a certain midwestern state, you would have to file a return in all of the states, each state getting a partial claim to income taxes (I processed taxes in the past for the unnamed state in question and saw a ton of these. They usually included the other state's returns for reference). I would assume it would be similar for other states.

You definitely do in California:
https://www.ftb.ca.gov/individuals/faq/ivr/209.shtml

In Oregon for the 2012 return, people were required to compute the income they made there, according to the partial year/non-resident instructions. I'd imagine it would be the same for this tax year.
http://www.oregon.gov/dor/PERTAX/docs/part-year-nonresident_101-045_2012.pdf

Since Washington has no personal state income tax, I can't say for sure. Do you have some sort of S-Corp or just doing this as an independent contractor? I still think you may have to file for Business and Occupational Tax though.

http://www.slandauservices.com/Documents/Self%20Employed%20and%20Living%20in%20Seattle.pdf

Really, I would see about consulting a CPA about this since it may be a clusterfuck to do on your own.

Snowy0Star
11-01-2013, 09:58 PM
I'm not sure exactly how it works in other states, but I know that in you lived in a random state for part of the year but moved to a certain midwestern state, you would have to file a return in all of the states, each state getting a partial claim to income taxes (I processed taxes in the past for the unnamed state in question and saw a ton of these. They usually included the other state's returns for reference). I would assume it would be similar for other states.

that sounds messy and an awful lot of paperwork :/

RaeRae
11-01-2013, 10:31 PM
Unfortunately yeah. Plus the state schedules for partial residents/non-residents were the longest ones that I saw because of the convoluted nature of them.

Melonie
11-02-2013, 06:50 AM
Ahhh ... reminds me of the good ol' days dancing on the road. It was fairly routine for me to file a resident tax return in New York, and to also file a half dozen different non-resident tax returns in other states as well as an occasional Canadian province. Agreed that TurboTax will now take care of all of the tax return filings, but the state tax software and electronic filing fees add up.

It would appear that you are a Washington resident, based on relative time spent in Washington by the end of the year. Thus you'll be filing non-resident tax returns in the other states. However, since Washington does not have a personal income tax, unless you are operating under an LLC or S-Corp you won't actually get a tax 'credit' from Washington to make up for the state income taxes you paid to the other states.

You can attempt to claim 'business expense' deductions ... including those incurred in Washington ... on your federal tax return. Then when you file state tax returns the federal info is reused.

Sexy Shana
11-06-2013, 11:52 AM
Can you file off computer equipment you bought this year on your taxes if it broke? XD or can you only file off still working equipment?

If you used it for camming, you can deduct it if it no longer works. Can deduct the replacement as well.

Melonie
11-06-2013, 12:26 PM
^^^ see 'Section 179' first year expensing ...

takiaya
11-16-2013, 06:15 PM
If you used it for camming, you can deduct it if it no longer works. Can deduct the replacement as well.

never bought a replacement XD it cost little over $2,300 so I will probably just pay to get it fixed later on, anyway thanks for the replies!

vulpix_
11-16-2013, 10:30 PM
Okay, I did some reading here and there, and I have a few questions. Firstly, I am 21 and currently living at home. I am a dependent. I have filed for FAFSA and been accepted/approved/what-have-you and used my parent's tax information in the process. I was on chaturbate for a couple hours last night under the impression that I could somehow secretly do this tax business without my parents finding out. Now, that's apparently not the case... I have roughly 3500 tokens sitting on my account, not converted to cash. If I don't convert them, I won't need to do taxes or anything right? Since I am planning on moving out in mid 2014, will I be an independent of my parents - no longer dependent? So I would be able to cam WITHOUT my parents knowing a damn thing? In that case, would I be able to start camming and converting to cash in January? Will Chaturbate hold those tokens that long? I am sorry for the all questions, its just I really enjoyed myself last night and I don't have the time or patience for what I understand you ladies call a vanilla job... :p Any and all help much appreciated. I know I'm a real noob at all this adult stuff. (:

Cam_Model_Jess
11-17-2013, 08:38 AM
I can't answer your Chaturbate questions, but I can tell you that if you make less than $400 on self-employed income, you don't have to file a return, unless you are required to file because of one of the other requirements listed in 1040 instructions here: http://www.irs.gov/pub/irs-pdf/i1040.pdf

So even if Chaturbate does automatically pay you out, they're not required to issue you a 1099 (if you they DO issue 1099s at all) because you've made less than $600, and unless you meet other IRS requirements, you don't have to file. So you should be safe either way.

You'd probably get site-specific answers about payouts (whether they'll hold the money for you, etc) if you post in the Chaturbate thread.

Sexy Shana
11-18-2013, 06:56 AM
The "1099" from the various sites is basically what drives our income tax liability. They are sent to your address that you provide them. The info above on amt's is correct for paying taxes...I am not sure but I think CB is not great about providing 1099's but regardless it could be "foolish" to just ignore CB income. Also, if CB pays you in 2014 that is next years income.

brittany_bitch
11-18-2013, 07:36 AM
hey guys I have two questions please help melonie if u will u are great with this stuff I see :)My friend forgot last year to include 1500.00 on her tax return she had a 1099 but she filed before she got it and she was accidentally 1500 dollars off. She didn't have to pay anything in anyway because she carried a child. So my question is since she didn't owe anyway and it's been a year she should be okay right? I mean even if she owed it wouldn't be more than 3 or 400 on 1500 anyway. So the irs I guess isn't worried about a measly 300 or 400 dollars. Anyway let me know what u think.Now question for me lol is do I count decembers earnings from streamate on my taxes? i sure hope so lol.

Sexy Shana
11-18-2013, 07:48 AM
hey guys I have two questions please help melonie if u will u are great with this stuff I see :)My friend forgot last year to include 1500.00 on her tax return she had a 1099 but she filed before she got it and she was accidentally 1500 dollars off. She didn't have to pay anything in anyway because she carried a child. So my question is since she didn't owe anyway and it's been a year she should be okay right? I mean even if she owed it wouldn't be more than 3 or 400 on 1500 anyway. So the irs I guess isn't worried about a measly 300 or 400 dollars. Anyway let me know what u think.Now question for me lol is do I count decembers earnings from streamate on my taxes? i sure hope so lol.

Just file a "corrected" return. A hell of a lot easier then an audit and a penalty.

brittany_bitch
11-18-2013, 08:41 AM
I figured since she had the kid and didn't owe on it anyway and it was a low amount if she did owe she should be okay since she didn't owe on it. It has been a year i will let her know then ty.

brittany_bitch
11-18-2013, 08:44 AM
Also did anyone know about the sm thing?

Cam_Model_Jess
11-18-2013, 08:48 AM
Yes, she needs to file an amended return. She can't possibly do math like that in her head. $1500 might move her up a whole tax bracket if she's right on the edge. It's best to document everything, even if she won't owe any money. And yes, the IRS would want their $300-$400 if she owes that much. They want every single dollar.

Cam_Model_Jess
11-18-2013, 08:53 AM
You can choose to do your taxes in one of two ways: by "date earned" or "date paid". I choose "date paid". Since I'm on a 3 week delay, most of December's SM earnings go on my next year's taxes. I go by the date of payout on SM's site just because it's easier. According to my accountant, you can choose which method you want to go with, but if you're using an accountant too, you could ask him/her to double check.

Going with "date paid" also helps me tremendously with my quarterly estimates because on some sites I don't always reach payout every month.

brittany_bitch
11-18-2013, 09:00 AM
ty. Do I need to do quarterly too? How does that work when i am gonna carry my daughter.

Cam_Model_Jess
11-18-2013, 09:06 AM
Yes, you need to pay quarterly taxes if you're self-employed & you meet the requirements to pay quarterly taxes. What does "carry my daughter" mean?

We've already addressed quarterly taxes multiple times in this thread. If you're still confused, go read www.irs.gov. Read the entire section on self-employment taxes & estimated quarterly tax payments. If you still have questions after reading, feel free to PM me. I'm suggesting you read it because, despite the legal language, it will really help you to read it yourself & have a better understanding of the whole thing.

brittany_bitch
11-18-2013, 09:26 AM
My daughter is my dependant and I won't have to pay anything in so I didn't know if the quarterly applied here ty.

Cam_Model_Jess
11-18-2013, 09:44 AM
If you've never done your taxes as a self-employed inidividual, then you don't know exactly how much you may or may not owe. Self-employed individuals generally pay a much higher rate than do employees, since we are paying all of of SS & Medicaid taxes on our own. The IRS suggests (on their website) that you at least do the paperwork to find out if you need to pay anything.

From the IRS site:
"You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

How Do I Make My Quarterly Payments?
Estimated tax is the method used to pay Social Security and Medicare taxes and income tax, because you do not have an employer withholding these taxes for you. Form 1040-ES, Estimated Tax for Individuals (PDF), is used to figure these taxes. Form 1040-ES contains a worksheet that is similar to Form 1040. You will need your prior year’s annual tax return in order to fill out Form 1040-ES.
Use the worksheet found in Form 1040-ES, Estimated Tax for Individuals to find out if you are required to file quarterly estimated tax."



I was told by my accountant that if you owe less than $1k when you file, you won't get a penalty. According to Form 2210, that's true. If you owe more than that, you're only required to pay 90% of what you owe, or 90% of what you owed last year actually. And the IRS suggests that you use last year's taxes to calculate what you'll owe. But that will only tell you what you need to pay quarterly in order to avoid a penalty. That will NOT tell you what you actually owe this year. Estimating using THIS year's income will give you a more accurate picture of what you'll owe, since in the end you're paying on this year's income, not last year's income.

brittany_bitch
11-18-2013, 09:57 AM
ty soo much girl.

Sexy Shana
11-20-2013, 07:49 AM
I would really suggest getting Turbo Tax, they guide u every step of the way, if u are patient. Sure helps and avoids paying too much. Excellent w dependents and if u hate math, it does ev thing for you,

Melonie
11-27-2013, 04:24 AM
^^^ just a note that there are several different versions of TurboTax, and independent contractor dancers will need the Home & Business version.

ashley jane
11-30-2013, 08:10 PM
Taxes confused me easily. I always did them online myself but that was with w-2. This is the first time I have to do my taxes for self employed. Can I use turbotax? I read in here before that I would/should use an accountant the first year. It's hard for me to get out of the house since I take care of my grandmother.

Sexy Shana
12-02-2013, 09:07 AM
Taxes confused me easily. I always did them online myself but that was with w-2. This is the first time I have to do my taxes for self employed. Can I use turbotax? I read in here before that I would/should use an accountant the first year. It's hard for me to get out of the house since I take care of my grandmother.

Use Turbo Tax, the sm all biz version. Take the time to listen to all the promps and suggestions......

Good luck!!

ashley jane
12-02-2013, 12:18 PM
Use Turbo Tax, the sm all biz version. Take the time to listen to all the promps and suggestions......

Good luck!!

Thank you!

h0ttie
12-03-2013, 08:31 PM
probably an unpopular opinion but:

the fine for not filing quarterly is not that bad... i would rather just cam to make the fine money than have to bother with tax stuff an extra 3 times a year

Melonie
12-05-2013, 02:01 PM
^^^ judgement call. However, being repeatedly hit with 'underpayment' of estimated taxes does increase the risk of future IRS audits. And in point of fact, guesstimating amounts for the quarterly estimated tax vouchers and cutting quarterly checks to the IRS for the estimated tax payment takes, like, an hour !

ashley jane
12-05-2013, 07:09 PM
I'm so tax illiterate. I read that if you make under $600 you don't owe taxes but then when looking for the answer I saw I'd still owe some other tax. State maybe? If so when should I file because I haven't filed at all this year but I've barely made anything. Last time i added it up it was less than $300.

Melonie
12-06-2013, 09:52 AM
^^^ if you truly earned only $600 TOTAL then you don't need to worry about filing a tax return. However, if you earned $20k at a 'straight' job, you do need to file a tax return with whatever earnings from other sources ( like camming ) included.

ashley jane
12-06-2013, 01:34 PM
So I've made $516 doing clips so I do not owe taxes correct? As long as I don't make over $600. That's all taxes? In my retail job before taxes I made about $10,000. Sorry but I don't want to do my taxes and waste the money not owing. Then if I do owe and not pay I don't want the IRS knocking on my door. My retail job already messes up my taxes I some how always owe the state a couple dollars.

Snowy0Star
12-06-2013, 01:36 PM
So I've made $516 doing clips so I do not owe taxes correct? As long as I don't make over $600. That's all taxes? In my retail job before taxes I made about $10,000. Sorry but I don't want to do my taxes and waste the money not owing. Then if I do owe and not pay I don't want the IRS knocking on my door. My retail job already messes up my taxes I some how always owe the state a couple dollars.

theyre probably not taking enuf out so when u file u have to pay the balance

ashley jane
12-06-2013, 01:42 PM
theyre probably not taking enuf out so when u file u have to pay the balance
I don't mind it taking it out of my balance but last year I got a letter saying I owed $2 but said it's not a bill. So for months I worried about it because it said if you don't pay within this time frame you'll have this added and that added. And of course I don't want to owe hundreds of dollar fines on $2. Then my retail job doesn't send my city taxes to the right place so I have to fill out other papers to get that corrected.

Melonie
12-07-2013, 06:35 AM
^^^ no, if you earned $10,000 via a 'straight job' plus another $500 via camming, your total earnings are $10,500 and you need to file a tax return. Your 'straight job' employer will file a W2 form with the IRS that essentially forces you to do so. Your webcam host may or may not file a 1099 form with the IRS ( you won't really know until next March ). If your webcam host does file a 1099, and you have not shown the income from that 1099 on your annual tax return, the IRS will definitely investigate further.

In terms of estimated taxes, your 'straight job' employer already withheld and sent to the IRS some amount of estimated taxes out of every one of your 'straight job' paychecks. Your webcam host didn't withhold anything ... and at minimum you will owe 15.3% * the $500 in camming earnings for Social Security taxes. So the question of whether or not you will wind up owing the IRS ( and your state tax agency, if your state levees its own income tax ) additional money boils down to how much money your 'straight job' employer has actually withheld from your paychecks for estimated tax payments on your behalf. You'll find out whether you need to pay additional tax money to the IRS ( and your state tax agency, if your state levees its own income tax ), versus receiving a tax refund, when you actually fill out your annual tax return(s) next March.

To avoid having to separately file and pay quarterly estimated taxes, a lot of dancers and camgirls who also have 'straight' jobs simply fill out a new W4 ( estimated tax withholding ) form for their 'straight' job's payroll dep't that withholds enough additional money from each 'straight' job paycheck to also cover the additional taxes due on their very part-time dancing and camming earnings. But this really only works if 'straight' job earnings comprise the vast majority of total dollar earnings.

Sexy Shana
12-08-2013, 08:11 AM
Correct of course, but still have to pay SS taxes on camming income. I do itemize and bring my camming income way down.

CurvyWinona
12-12-2013, 03:33 PM
I got a new set of computer and bought warranty.. can warranty be a write off? its weird question but im curious.

Cam_Model_Jess
12-12-2013, 05:42 PM
I write off warranties for business-related products, yes.

Edit to add: I forgot to mention the part about percentages. Yes, if it's used ONLY for business, deduct the whole thing. If it's used for both business & personal, I'd only deduct 50%. I take for granted that people know the percentages. Sorry about that, CW.

Cam_Model_Jess
12-12-2013, 05:48 PM
Correct of course, but still have to pay SS taxes on camming income. I do itemize and bring my camming income way down.

I think what she means is that if you also have a vanilla job, you can elect to have your employer withhold more from your checks. One way to do this is to claim 0 deductions instead of 1. Then the employer will withhold more money. Yes, you still need to claim/pay on your SS for camming, etc.; however, it may even out more in the end.

Imagine it as one big "tax pot" that all the money is thrown into. The goverment isn't going to say, "you overpaid us $1000 from your waitressing job, but you owe us $1000 from your camming job. Now you have to come up with the $1000 from your camming job and then we'll issue you a refund for your waitressing job." It's all one pot of money when you file. What you owe/are owed is what you owe/are owed, and it doesn't really matter what the income source was.

I don't know if that's making sense?

Cam_Model_Jess
12-12-2013, 05:59 PM
A simple example (please don't pick apart the numbers, they're just an illustration).

Vanilla job = $35,000 and Camming = $5,000

You pay up to 30% (but probably less) of that $5k, which is $1500.

If your employers withholds an extra $500 (somehow) from your checks, then you only owe $1k when it's time to file. You don't have to pay a penalty because it's only $1k. AND you wouldn't need to pay quarterly. Chances are you won't even owe that much because most of your income is wages, and you only need to pay quarterly if what is already being withheld is less than 90% of what you owed last year.

If you could get your employer to withhold even more, that's great. It means you owe less at the end of the year.

AmberAustin
12-12-2013, 07:37 PM
I write off warranties for business-related products, yes.

Keep in mind that you can only write off the entire computer if it's used exclusively for camming. You may also need to keep detailed records about how you used the computer.

Melonie
12-13-2013, 07:41 AM
^^^ yup that is indeed the case. About the only way that a 100% business expense tax deduction for a new computer will 'fly' unquestioned is if the person also has a second computer, allowing the first computer to be devoted to 100% business use. Failing that, Amber is correct that you will need to keep usage records of a single computer to eventually determine what percentage of total use was for business ... which in turn will allow you to deduct that percentage of your computer's cost as a business expense.

Cam_Model_Jess
12-13-2013, 08:29 AM
When I bought my computer, I deducted 50% of the computer & the warranty. I figured that percentage wouldn't draw attention to me, and I knew that I would probably use it 75% for business and 25% for personal, and tend to be conservative with my deductions.