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redridinghood
02-13-2014, 05:54 PM
Does anyone else happen to know the Company name and EINs for either Cam4 or MFC? At this point I'm on the brink of not filing my taxes at all because none of the camsites have been forthcoming about their information and I don't know what else to do. :(

ashley jane
02-13-2014, 06:03 PM
There is a way around it. I can't remember because I did mine a few weeks ago. Between 3 sites I made $500 so I didn't have any 1099s or any info. I used turbo tax. I remember there being a few boxes where it asked like how much and next to it description and I put C4S $256.90 or whatever I made. It took me hours to do. You just have to go slow and make sure to read it all. A few times I had to go back and reread because I did mess something up.

redridinghood
02-13-2014, 06:06 PM
What did you put as the job description for them? Also where did you get your EIN information from to put on there?

ashley jane
02-13-2014, 06:25 PM
At the beginning it asks if you have employees and if you do that means you have an EIN and you can get it from the IRS site. If you say you don't pay people you don't need an EIN and it lets you go. Also at the end it tricked me with the EIN thing again. I thought it was my tax pin number thing and was freaking out because I didn't have it but it let you go with out one. I just put sales for mine. I work in retail and made more money from that job. Plus I figure I'm selling myself online and selling clothes in a store. It's all sales.

redridinghood
02-13-2014, 06:28 PM
^^ Thanks but that's not at all what the turbotax site is looking like to me. it let's me get through the entire thing without allowing me to input the info if i don't have a company name and EIN. Oh well, I've emailed Cam4 to find out about the info I can from them and I'm asking any MFC gals to see if they know the EIN and company name from their 1099s so I can file. Thanks for helping though!

ashley jane
02-13-2014, 06:31 PM
I don't remember having to put any of that in. I remember it asking but I have none of that info so I had to have done something to get past it.

RaeRae
02-13-2014, 07:12 PM
I put the income that I didn't receive 1099s for in the schedule c section of Turbo Tax Deluxe. It asked for income not reported otherwise to be inputted there, which is where I put my cam4(despite being above $600 - never got the 1099), IMLive, C4S and ELM money.

Melonie
02-14-2014, 04:27 AM
^^^ yes that's the proper approach to report independent contractor business income which wasn't accompanied by a 1099.

SarahTime
02-16-2014, 01:41 PM
I put the income that I didn't receive 1099s for in the schedule c section of Turbo Tax Deluxe. It asked for income not reported otherwise to be inputted there, which is where I put my cam4(despite being above $600 - never got the 1099), IMLive, C4S and ELM money.

This is what I do too!

redridinghood - you're probably going to have to pay for the business version, I don't think the standard version will do what you are needing it to do, that's probably why you are running into problems.

KatyBoleyn
02-17-2014, 08:37 PM
If your total income was that low, you almost certainly will make your money back by filing. Do not skip filing.

Even if you don't make your money back in tax credits, it is still highly useful to prove your low income when filing for benefits.

redridinghood
02-18-2014, 01:55 PM
^^^It appears to only be really useful in getting a refund if I'm over 25 or if I had any children, which I don't and I am not yet. I'm going to have my boyfriend claim me on his taxes though so maybe we'll get some kind of breaks there.

lilacheart
02-18-2014, 02:12 PM
Is it possible to efile your federal taxes on Turbotax for free? I have 1099 misc forums but it tells me I can't file without upgrading, has anyone figured out a way around that or no?

Melonie
02-18-2014, 02:23 PM
the 'free' online software is meant for 'employees'. 1099 income / Schedule C requires software for 'businesses'.

Snowy0Star
02-22-2014, 02:45 AM
Im going to have the tax dom do my taxes this year (and probably as long as im going sex work- numbers hurt my head lol ) ive never had anyone not local do my taxes so i was wondering how to 'package' all my paperwork for her. I made PDF files out of my payoneer loads (ALL my camsites i have set up for payoneer). i also have several emails/receipts from things i purchased for right offs and i have my paper 1099 in the mail and one from one cam site i have to print out.

Cam_Model_Jess
02-22-2014, 07:24 AM
Snowy, I had a somewhat non-local accountant do mine. Local enough that I could meet with him, but not local enough to keep driving there to give him more paperwork. All he had me do was make two spreadsheets: one with all my income & one with all my deductions. Accountants don't need 1099s or receipts. They just need numbers. On the income sheet, I didn't even put the sources. I just used one column for income, a separate row for each source. Then on the deductions sheet, I grouped deductions together. Health insurance, student loan interest, costumes/props, physical electronics & supplies such as memory cards & hard drives, travel expenses (he did have me separate meals, hotels & mileage), then a category for things like online data storage, website fees, photo programs... basically anything tech-related but not physical. I subtotaled each category, then totaled all business deductions.

I e-mailed him the two spreadsheets plus a PDF record of my tax payments for the year. He was able to file with just that info.

SarahTime
02-22-2014, 03:09 PM
I'm going to have my boyfriend claim me on his taxes though so maybe we'll get some kind of breaks there.

Just make sure you meet all the requirements for a "qualifying relative" before he does that.

SweetPinkCupcake
02-23-2014, 08:12 PM
I am really confused about LLC/S-Corp stuff and need to look for a tax professional. I have a vanilla business I am building that has a lot of deductions with travel and 10s of thousands worth of supplies I'll be ordering and license and class fees. My income is obviously not coming from that yet tho, at least the huge bulk if it is not, it is coming from sexwork. I want to be able to claim all my income under my LLC tho for my hair business. Is it possible to do that yet still write off my sexwork related expenses like computers and specialized software and current supplies? And I guess I don't have to put in my 1099s from the camsites according to the above posts, right? That confuses me so much!

Melonie
02-24-2014, 04:05 AM
^^^ first important question is what the stated purpose of your LLC was when you originally registered and published it. If 'any lawful purpose' was stated, then technically speaking you can account for all of your business activities under one LLC. And yes you will have to enter 1099's ( payer names and amounts ) , since the IRS has already received copies of the same 1099's and will try to match them up somewhere on your tax return. If you account for both business activities under the same LLC, the 'losses' from one business activity will 'cancel out' gains from the other business activity, thus reducing your tax liability.

Ka-Ka-Ka-KATIE
02-27-2014, 08:42 PM
Well... first off I want to say that you REALLY don't have to fuck yourself with a dildo... I found a way to play it where I rarely have to even get nude. I'm not gonna lie and say I never do but they have to spend A LOT of money to see me nude. I'm not saying that theirs anything wrong with getting naked and doing whatever. I just found that I make more money when I don't. I mean men come on their initially because they're horney but really their just lonely. Therefor whenever they see the chance to have a "real" relationship with me everything else goes out the window. It doesn't always work on everyone... when it doesn't, t that's okay! They can leave! Someone else will come along where it WILL work! (: If you wanna know what I do, just ask! I have certain things I say, ways I act, and many other things that make it work... If you don't care PLEASE don't rag on me! If you don't have anything nice to say... don't say anything at all Deal? lol.
Anyways, 30% for taxes? It says you live in reno?? I live in Vegas and I only have to pay about 15%?(I get a 1099 where it says I am in Sales...) Which is still a pain in the ass! Which I realized last year when I had to dish out a crap load of money at the end of the year lol. So I decided to do a lot more Skype shows and have the customers pay through Western Union and PayPal (After I do a few shows with a customer I offer this option. Which they usually ALWAYS go for since they want me to receive full percentage and I make it cheaper. YES, I KNOW it's against the rules on most sites. Which is why I ALWAYS say it out loud since they can only review what is typed....) Where I would not have to pay taxes, since the government doesn't really know about it. I just got my 1099 and I only made 30,000 this year and then went a reviewed my earnings on paypal ext. where I made another 28k... Which is awesome because I don't have to pay another 3k in taxes on that money! So if you can try that, do it, it really helps (:!
Also, you can deduct so many things you buy in everyday life from your taxes! Make up, clothes, phones, and things like that are fine to deduct. Pretty much anything that effects your work or you use while working! For example your looks are a big part of it which is why make up and clothes are acceptable to deduct!
So... pretty much my answer is YES! It's worth it 100 percent! Considering if I was working a min wage job I would have had to work my ass off and not made anywhere near what I made. Not to mention the fact that I can't even fathom the thought of working for a whole hour and making eight something dollars.... THAT'S INSANE!!!! Not knocking anyone who works a min wage job too but I just personally couldn't do it. It's hard work too! I would much rather log on for 10 minutes and make that plus more!
1,000 bucks a week is pretty good actually! Not sure how much you are working but that's kinda around what I make each week including my paypal and WU earnings... I honestly don't know how many hours a week I work lol. If I could guess though... it wouldn't be very much. I average around 70 dollars an hour... but I make more sometimes! Really just depends how busy it is online and if my regulars are on! Whenever I check my online time it usually is under 1000 minutes... Which isn't really much at all! Sometimes it kind of shocks me how little my minute count is for how much I made lol!

loveshooks
02-28-2014, 12:23 AM
Well... first off I want to say that you REALLY don't have to fuck yourself with a dildo... I found a way to play it where I rarely have to even get nude. I'm not gonna lie and say I never do but they have to spend A LOT of money to see me nude. I'm not saying that theirs anything wrong with getting naked and doing whatever. I just found that I make more money when I don't.

I have no aversion to nudity but I've found the same, I think what you're describing is a pretty common phenomenon. That said it's probably unrealistic for most chicas without an established customer base to bank on a cam site as a non nude chica. Not impossible by any stretch, just an uphill climb and heavily dependent upon targeted niche of choice.


I decided to do a lot more Skype shows and have the customers pay through Western Union and PayPal (After I do a few shows with a customer I offer this option. Which they usually ALWAYS go for since they want me to receive full percentage and I make it cheaper. YES, I KNOW it's against the rules on most sites. Which is why I ALWAYS say it out loud since they can only review what is typed

I have no ethical qualms with chicas who 'steal' customers (even if it was my business, which it isn't). When I went indy I took every last one of my cam site guys with me when I left, so I'm totally guilty of the same. The operative word in my case was 'left' though. I'd urge mad caution for any chica who plans to keep working on the site from which she 'liberates' clients. It's a risky proposition, gives one's clients a tremendous amount of power (they could rat on you in a sec if they so chose) and sites such as sm DO monitor voice logs (or at least they did back when I ran members shows through their platform). I know that first hand cuz back in the day I got suspended for mentioning skype with my own pay site customers while using the sm platform. Saying ish out loud isn't a way to prevent getting caught.


Where I would not have to pay taxes, since the government doesn't really know about it. I just got my 1099 and I only made 30,000 this year and then went a reviewed my earnings on paypal ext. where I made another 28k... Which is awesome because I don't have to pay another 3k in taxes on that money! So if you can try that, do it, it really helps

I don't really know where to begin with this. Paypal is notoriously anti-adult (and western union reveals a ton of private info to one's clients). If you're gonna do indy, do it right and get yourself some real processing for the business that you're running. As far as not reporting indy income, everything online is traceable, and you run some huge risks (and massive penalties) for evading taxes. Is 3k really worth risking your future?


Also, you can deduct so many things you buy in everyday life from your taxes! Make up, clothes, phones, and things like that are fine to deduct. Pretty much anything that effects your work or you use while working! For example your looks are a big part of it which is why make up and clothes are acceptable to deduct!

please familiarize yourself with the 'housewife test'. Many of the items you mention are NOT deductable, and worse heighten the risk that you'll get audited (and risk having the evaded income discovered).


So... pretty much my answer is YES! It's worth it 100 percent!

we're in 100% agreement on that tip :)

welcome to sw, I hope you find this place helpful

Melonie
02-28-2014, 02:00 AM
^^^ be aware that the ACA now requires ALL payers, including PayPal etc., to generate 1099's next spring for moneys paid out to individual Americans and American businesses during 2014. This was supposed to commence last year, but Washington DC allowed a 1 year extension ( which so far has NOT been extended ). As such, it's extremely probable that 2014 earnings routed through PayPal will appear on IRS 'radar'.

Ka-Ka-Ka-KATIE
02-28-2014, 06:58 AM
Yes! I know those things about PayPal (: I forgot to mention that they can send the payment as a "gift to friends or family" I always make sure they send it as a gift instead of a payment. Therefor paying taxes aren't necessary for a gift! Also, on the paypal theres a page that shows your taxed income that's reported... mine was zero so the gift thing is good to go. (Not sure where the page is but if you search it in FAQ, it's there) I agree though I rarely use WU, unless the customer is really trusted. I defiantly WOULDN'T suggest it! Also... I mean it's kinda messed up to "steal" customers... but it makes me sick that I only receive 23 percent. I'm an idiot and signed up with a dumb studio when I started... if I knew what I know now, I would have never done that. I kinda like going into the studio though because I really can't focus at home... Anyways, the studio only takes 12 percent... I think it's way more messed up that the site only gives 35 percent?! I'm on streammate, if they gave more percent I wouldn't do this... I mean when I get 100$... I really made 500??? NOW THAT'S MESSED UP! I don't do it for the taxes mainly... that's just a plus. I do it because I get 100 percent of the cash. Opposed to the pathetic scrap they give me when I'm the one online... I'm not familiar with the housewife test but I'll check it out? I have a really good tax man who goes through my receipts and only uses what is acceptable! So, I wouldn't suggest doing it on your own and just deducting all the things you "THINK" are acceptable. I would only suggest it if you have a tax man who is legit and will do it all by the books! Thanks though, I really like this site (: Also, thanks for being nice about the comments! Instead of attacking everything you don't agree with... lol.

KatyBoleyn
02-28-2014, 07:34 PM
Oy vey...calling something a "gift" does not make it a gift. If you received the "gift" as part of your business as direct compensation, the IRS will certainly not see it as a gift were it go to audit. Any exchange of money with a business client does count as income. When your stated business is some kind of entertaining clients, it will be a hard sell to an auditor or judge that these guys just lavish you with cash gifts for no reason. Counting on a check box on PayPal to cover for you won't help, nor does receiving funds through "Gift"rocket, for example. Your "by the book" tax man might be able to explain it a bit better.

As for percentages, you really have to look at the big picture when it comes to websites. Yes, it can seem exorbitant, but they are giving you a very steady stream of readily paying traffic, meaning your overall income for the site over time is actually fairly good. The 12% thing with the studio is edging toward ridiculous if they aren't promoting you directly also or providing some other services.

Cam_Model_Jess
02-28-2014, 08:21 PM
^I totally agree. I get actual gifts (cash, gift cards that are actually gifts) from customers, then I get "gifts" that are really in exchange for services. I pay taxes on the portion that is in exchange for services. I was taking gift cards in exchange for services, and toward the end of the year (and after talking to some ladies here), decided to print out a report of all the gift cards I received, then I figured out how much the taxes would be. It came out to about $1200 more I'd have to pay. But I always save 30% & never end up paying that much, so I just ended up with a smaller return this year than last year.

To me, it's just not worth the risk. You might get away with it. Or someone (IRS, Paypal) might wonder why you're receiving so much money in gifts.

You do whatever you wanna do. But I would never recommend to other ladies on here to hide income from the IRS.

KatyBoleyn
03-01-2014, 07:53 AM
Gift cards, like Amazon, are fully taxable at their cash value and you probably should start including them in your income statements. Apparently if the customer directly sends you a turkey directly, you're just fine, but not a gift card.

http://www.irs.gov/pub/irs-tege/p_4090_fed_0305_text.pdf

Curious now if you can make an anonymous wishlist with the Schwan's delivery guy.

Snowy0Star
03-01-2014, 10:05 AM
i find that a little hard to believe and unfair to us guys do do that that tho - some just send money to be nice because they like us and buy us things from our wishlist we all are small time celebrities pretty much and we do have fans some like to spoil us i dont think we should be living in fear from the tax man to come after us for that.

anonymous camgirl
03-01-2014, 10:14 AM
I am not sure if i agree with you on claiming taxes on gift cards.. It almost sounds ludicrous.. if you call an IRS agent and ask I might believe you.. if that's the case.. every birthday present, every christmas everything gift anyone has EVER given to you should be taxed?? because in essence that is what you are making it sound like.. so therefore i should write off the christmas presents i gave to my sister cuz she has to pay taxes on it.. doesn't compute.. show me some proof.

Cam_Model_Jess
03-01-2014, 10:27 AM
Yep, that's a pretty big grey area. If I remember correctly, the article I read on the topic cites gift cards & vouchers from employers as taxable. Customers are not our employers. I understand that the other argument is they're only giving us gifts because we're doing what we do, but I don't think that's a good enough reason to pay taxes on it.

My accountant said that I should pay taxes on "gifts" (cash, gift cards) given in exchange for goods/services, but not on those given purely as gifts. Granted, my accountant has little experience with the adult industry. It would be nice to get solid info on this, from an IRS agent or from an accountant who deals with the adult industry quite often/primarily.

I'm pretty conservative with my deductions and the income I claim, and I haven't & won't be claiming actual gifts until I have solid proof that I should do otherwise.

Melonie
03-01-2014, 12:39 PM
You probably don't want to hear this ... but ... under US law there are several precedents which all consider 'gifts' given by non-relative men to girls working in the 'adult industry' to be 'payment for services rendered' , thus fully taxable as ordinary income.

anonymous camgirl
03-01-2014, 02:05 PM
I say NO on gifts and gift cards for just because.. The reason I say this again is because.. the amount of money that one gifts to you doesn't even hit the thresh hold of gifting.. there is a maximum of gifting to one person do you know what i mean?


Yep, that's a pretty big grey area. If I remember correctly, the article I read on the topic cites gift cards & vouchers from employers as taxable. Customers are not our employers. I understand that the other argument is they're only giving us gifts because we're doing what we do, but I don't think that's a good enough reason to pay taxes on it.

My accountant said that I should pay taxes on "gifts" (cash, gift cards) given in exchange for goods/services, but not on those given purely as gifts. Granted, my accountant has little experience with the adult industry. It would be nice to get solid info on this, from an IRS agent or from an accountant who deals with the adult industry quite often/primarily.

I'm pretty conservative with my deductions and the income I claim, and I haven't & won't be claiming actual gifts until I have solid proof that I should do otherwise.

Snowy0Star
03-01-2014, 03:44 PM
You probably don't want to hear this ... but ... under US law there are several precedents which all consider 'gifts' given by non-relative men to girls working in the 'adult industry' to be 'payment for services rendered' , thus fully taxable as ordinary income.

wait so ur saying all our amazon wish list items and any monies given to us from our custies must be taxed 0.o

Cam_Model_Jess
03-01-2014, 05:12 PM
I say NO on gifts and gift cards for just because.. The reason I say this again is because.. the amount of money that one gifts to you doesn't even hit the thresh hold of gifting.. there is a maximum of gifting to one person do you know what i mean?

The amount per gift giver is $14k this year, but those types of gifts are usually from family members... and that's not what these ladies are saying. They're saying that it's technically not a gift simply because of our profession. If I'm understanding correctly what's being said, that because of our profession we can't receive monetary gifts; all "gifts" are actually payment for services even if services were never rendered & will never be rendered. I'd love to see the proof for sure. I certainly don't want to get in trouble for not paying taxes. But if some guy on Twitter decides to randomly send me $100 for no reason other than to say "I appreciate what you do" or "I appreciate your work" then I'm going to call that a gift & not pay taxes on it.

I certainly don't claim to know everything though. I just haven't seen anything to tell me that I should be paying taxes on it.

Cam_Model_Jess
03-01-2014, 05:32 PM
This is an interesting thing to research. Let's say I'm a stripper. (And please, strippers, forgive me if I don't understand how this works. But this is the closest physical example I can come up with.) I work at a club where I have regular customers. One particular customer comes in one night, he gets a lap dance from me, he tips me. After I am done with my shift and clock out, I change clothes, leave the club with a few coworkers. We're walking to our cars & a customer respectfully approaches me, says he appreciates how friendly I was, appreciates what I do, and hands me $100 then walks away. I have not given him anything for the $100, nor was it implied that at any point in the future I would give him anything in exchange for the gift.

Would that be considered a "tip" or a "gift"?

Or what about this: Let's say I'm a small-time artist. I am showing my paintings at a local gallery, and there is a woman there who just loves my work. Instead of buying one of my paintings, she hands me $200 and says something cute like "for more paint". Would I claim that $200 on my taxes as income?

I don't know. I'm just trying to come up with examples of similar professions and the situations that might arise.

Melonie
03-03-2014, 10:03 AM
^^^ if audited by the IRS, the hand to hand cash $100 'after hours' customer tip will not have a paper trail. As such, if you don't claim it as taxable income, the IRS has no way to know that the customer 'gave' you $100 ... thus rendering the point moot regarding the question of 'gift' versus 'payment for services rendered'.

However, if a customer 'gives' you something that DOES create a paper trail, i.e. an Amazon gift card, a PayPal funds transfer, etc., then the IRS DOES have a way to find out about that payment. If you consider those payments to be 'gifts', and thus do not report them as income on your tax return, IRS computer being unable to 'match up' paper trails may increase your chances of being audited.

Under existing IRS precedent it is very probable that, if you are audited, the IRS will 'declare' those payments to be taxable income based simply on the fact that you work in the 'adult' industry. Thus in real world terms, at that point you'll face a choice of paying the IRS the extra tax money they want, versus hiring an attorney to dispute the issue in tax court. And in either case, you will have raised a 'yellow flag' at the IRS that will lead to increased IRS scrutiny of your future tax returns.

KatyBoleyn
03-03-2014, 05:34 PM
Under existing IRS precedent it is very probable that, if you are audited, the IRS will 'declare' those payments to be taxable income based simply on the fact that you work in the 'adult' industry. Thus in real world terms, at that point you'll face a choice of paying the IRS the extra tax money they want, versus hiring an attorney to dispute the issue in tax court. And in either case, you will have raised a 'yellow flag' at the IRS that will lead to increased IRS scrutiny of your future tax returns.

What I don't want to see is that enough cammodels try to cheat the system this way and we become easy audit targets just by virtue of our jobs. Some junior accountant at the IRS will have a hay day with this. Little known fact, they actually have a bonus system for recovering money in an audit.

And gifts from your contractor are not necessarily ridiculous to declare as income. If it were that easy to skirt tax laws, your plumber would be asking for PayPal gifts instead of a check that clears. As it is, a lot of them are still cash only for this reason, but since we don't see a lot of our clients in person then anything you get from a client should become a ledger entry. If you want to argue that a close relative is also your camming client ("WTF, Dad?!?"), then maybe you could get away with it.

SarahTime
03-04-2014, 06:16 PM
Regarding Paypal.... You can send money to someone and mark it as a "gift" if you want to, basically the only thing this does is 1) possibly avoids a fee for sending money and 2) the money is not protected under buyer protection. That's about it. Even if you charge a guy $50 for some videos, and he sends the payment marked as "gift" this doesn't mean it was a "gift". It was still "income". I'm not sure how paypal would actually categorize this on their end, but when it comes down to it, it's a payment for services regardless if the dude checked "gift" or not just to avoid a fee.

It's a good idea to simply keep track of all your earnings and all transactions between customers, be it gifts or purchases. If a guy pays you via a "gift card" when it was in exchange for a Skype show, I would claim that as income. However if they just send you a gift card off your wish list because they want to say hey, I like you. Then consider that a gift. It's pretty easy to determine when you are just being honest, did he send the money and get something in return? Yes? Income. No? Gift.

Honesty is pretty easy to prove when you keep track of everything. It's lying about income or transactions that are hard to prove in your favor in the end.

Aurora14
03-04-2014, 07:10 PM
This is an interesting thing to research. Let's say I'm a stripper. (And please, strippers, forgive me if I don't understand how this works. But this is the closest physical example I can come up with.) I work at a club where I have regular customers. One particular customer comes in one night, he gets a lap dance from me, he tips me. After I am done with my shift and clock out, I change clothes, leave the club with a few coworkers. We're walking to our cars & a customer respectfully approaches me, says he appreciates how friendly I was, appreciates what I do, and hands me $100 then walks away. I have not given him anything for the $100, nor was it implied that at any point in the future I would give him anything in exchange for the gift.

Would that be considered a "tip" or a "gift"?

Or what about this: Let's say I'm a small-time artist. I am showing my paintings at a local gallery, and there is a woman there who just loves my work. Instead of buying one of my paintings, she hands me $200 and says something cute like "for more paint". Would I claim that $200 on my taxes as income?

I don't know. I'm just trying to come up with examples of similar professions and the situations that might arise.



The problem with comparing stripping and camming, is the paper trail difference. In camming, there IS a paper trail. Each site we work with and any processors have every transaction recorded to cover THEIR asses. With stripping, it is largely a cash paid system. (There are exceptions, but for the most part cash is king) The most paper trail for majority of dancers is if the club records transactions on their end and their bank accounts.

A paper trail is a double edged sword though. Cam girls have it a lot easier come tax time because of all these records. In case of an audit, their numbers are there in black in white. A dancer doesn't have that to fall back on. I think it was Melonie who shared a story about a dancer she knew. She claimed about half her actual income, purchased a VERY fancy car triggering an audit, and got slammed in taxes owed and interest fees.

In general, I think it's just safer to err on the side of caution and claim (at LEAST a majority of) giftcards or monetary gifts paid through a processor. Like SaraTime said, Honesty is pretty easy to prove when you keep track of everything. It's lying about income or transactions that are hard to prove in your favor in the end.

Melonie
03-05-2014, 03:52 AM
A paper trail is a double edged sword though. Cam girls have it a lot easier come tax time because of all these records. In case of an audit, their numbers are there in black in white.

Indeed there is a paper trail of payments made to dancers by webcam hosts. However, when 'payments' are also made via Amazon, via PayPal, there is ALSO a paper trail ... of sorts. While it not absolutely guaranteed that the Amazon, PayPal paper trail will be problematic if audited, it IS guaranteed that potential problems will be higher than the somewhat analogous situation of dancers personally receiving cash 'gifts' or merchandise from a customer's hand.

wabisophie
03-09-2014, 10:11 PM
Speaking of which, is Payoneer payements are considered as "paper trails"? On the one hand, there is a trace of receiveng these money and it is a safe way for all those sites to make payments, so they "save their asses" with it, but on the other hand I can go with this card and just cash it out in the next ATM, without leaving any trace, right? And then declare any amount I want for taxes (in theory). I live in Europe.
The problem is of course that there is not much I can do with big amounts of cash in any developped country =/, but thats another story. So as Im planning to go on cams full time I started to gather some info about LLC, Corps etc

CuriousSeeker
03-09-2014, 11:47 PM
Some junior accountant at the IRS will have a hay day with this. Little known fact, they actually have a bonus system for recovering money in an audit.


Oy vey, no, I did not know this.

Melonie
03-10-2014, 01:32 AM
^^^ and beyond any IRS internal bonus system, many state tax agencies are now able to hire private sector 'tax bounty hunters'. These are private firms set up much like overdue bill collection agencies. These private 'tax bounty hunters' are paid by receiving say 33% of any additional tax revenues they are able to generate. These private 'tax bounty hunters' also have access to federal and state tax records. See

(snip)" What Could Be Worse Than an Aggressive State Tax Auditor?

How about a tax “bounty hunter” imbued with the power of the government?(snip)

Obviously, as more and more US states and cities slide toward bankruptcy, their motivation to collect additional tax revenues increases. And unlike the federal IRS which received a huge allocation of additional budget money via Obamacare with which to hire new in-house agents and investigators, the state tax agencies face budget constraints. But by hiring 'tax bounty hunters' who are paid on 'commission', the states are able to put 'more boots on the ground' without actually spending additional moneys.

The concerns about private sector 'tax bounty hunters', of course, are that their ONLY motivation is increased tax collections, and that the 'restraints' on their use of federal and state records, private financial records, etc. is poorly defined.

HaydenBlue
03-12-2014, 05:44 PM
Hi bbs,

I just have a question.

I have both 1099's and misc income...I thought I needed the biz version of TurboTax...but I go in and there are options to input 1099 info in both biz and personal sections? I do not have an LLC or anything - do I input the 1099 info in both sections or just one or the other? Hope that was clear.

Melonie
03-12-2014, 11:54 PM
^^^ to enter self-employed business income 1099's you need the Home and Business version. The basic version won't allow you to deduct business expenses, won't calculate self-employment SSI tax etc.

HaydenBlue
03-13-2014, 12:35 AM
^^^ to enter self-employed business income 1099's you need the Home and Business version. The basic version won't allow you to deduct business expenses, won't calculate self-employment SSI tax etc.

Yes that's the version I have. But it gives me personal and biz sections and both ask for 1099?

Melonie
03-13-2014, 12:53 PM
if the 1099's are from a webcam host, a strip club, or other 'business' enterprise, enter as business income. if the 1099's are for gambling winnings etc. enter as personal income.

HaydenBlue
03-13-2014, 05:11 PM
if the 1099's are from a webcam host, a strip club, or other 'business' enterprise, enter as business income. if the 1099's are for gambling winnings etc. enter as personal income.

Thank you ! :) Wasn't sure which one to go with.

hypgal
03-14-2014, 01:05 PM
Hmm, I had read an article about the $14,000 gift tax too and had been curious if things like Tribute buttons on niteflirt were more akin to a gift or more akin to say a waitress getting tips (which also can be fudged when cash, but is considered a type of income). I of course was really hoping for gifts, and even made a file encouraging guys to give the tributes because of it being tax-free for both of us, unless they spend enough and yet even then they'd have to pay the tax lol (may be wishful thinking, we shall see!). Suppose I can still use it, even if I do really have to pay taxes on it, and keep up the fantasy!

I shouldn't have to worry until next year, just getting started, but will give me a better idea of how much to set aside. It just seems a shame when so much is already taken from the fees.

Cam_Model_Jess
03-14-2014, 04:17 PM
Niteflirt issues a 1099 if you make $20k or more. But yes, tributes on NF should be reported as income, even if NF doesn't issue you a 1099.

https://support.niteflirt.com/entries/21625696-Tax-Information

If the laws change at some point, NF may feel pressure from the IRS to issue 1099s in compliance with US laws regarding independent contractors. In 2012, Streamate issued 1099s for 2011, when they had previously never issued them. Then they issued 1099s for 2010 as well, leaving some camgirls to have to file amended tax returns for previous years. I personally had to amend my 2011 return, as I'd messed up some math and had to report SM's numbers instead.

Melonie
03-15-2014, 03:00 AM
^^^ It should also probably be mentioned that 1099 forms are certainly not the only 'automatic reporting mechanism' available which could potentially inform the IRS that a US camgirl has received payments from non-US sources. Under various 'terrorist anti money laundering' statutes and treaties, electronic funds transfers across the US border are undoubtedly being monitored. US banks are required to monitor customer accounts for transaction patterns involving 'suspicious activity', and to report such to the gov't.

And the IRS is also able to estimate income from the 'spending' side, based on automatic reports received from state property title offices, motor vehicle offices, college bursar's offices, banks and brokerages, retirement accounts, check cashing / money order services, etc.

The bottom line, of course, is that failure of a foreign country based webcam host to issue a 1099 provides no 'guarantee' that the IRS will remain unaware of the existence of that foreign income.


And if US camgirls feel like they are being singled out in this regard ... see

(snip)Group-of-20 nations agreed to implement a global standard for automatically exchanging information between tax authorities by the end of 2015, the Organization for Economic Cooperation and Development said.

The endorsement is a step toward putting an end to “banking secrecy as we know it,” Pascal Saint-Amans, director of the OECD’s center for tax policy and administration, told reporters today in Sydney, where G-20 finance ministers and central bankers are meeting.

A decision on the technology needed and detailed rules on how governments will swap tax data is likely to be made at a G-20 meeting in September, he said. The new standard would see countries automatically exchange information gathered from their financial institutions.(snip)

Sabihah
03-17-2014, 09:40 AM
I've been using TurboTax. I'm only getting the standard deduction and all my income is from self employment.

My understanding is that my taxes owed should come to 15.3% + [tax bracket %] of [total income - $6100 (the standard deduction)]. But it looks like they've put me in the wrong bracket, or something - the total owed for federal taxes is significantly higher than it should be. Am I missing something?