View Full Version : Camming And Taxes
Cam_Model_Jess
03-17-2014, 02:11 PM
If you're not doing all of the business forms as you should be, you could be missing the 50% self-employment tax deduction. Is that anywhere there yet?
And personal exemption is $3,900.
Melonie
03-18-2014, 10:06 AM
^^^ It sounds like you're trying to use the personal ( employee ) version of TurboTax instead of the home and business version. To get the self-employment deduction, income and business expense deductions have to be entered on Schedule C 'profit or loss from a business' ... and only the home and business version includes Schedule C.
RaeRae
03-18-2014, 11:56 AM
The deluxe online or downloadable/cd version will do a schedule C-EZ according to the turbotax website if only need that. It only covers profits from a business, so if you cammed at a overall loss, it doesn't work.
Classy_Katy
03-20-2014, 01:40 PM
Owing tax in the UK - http://www.huffingtonpost.co.uk/2014/03/20/budget-2014-hmrc-bank-account-tax_n_4999797.html?1395331705
HMRC will be able to take money from people who owe officials over £1,000 in tax.
Officials will only be able to use the power for Britons who have been asked "multiple times" by debt collection officials to pay, and must leave at least £5,000 in the account.
Once HMRC takes the money, the taxpayer will have 14 days to get in touch and set up a payment plan, otherwise officials will keep what they have taken.
Osborne's Budget also gave HMRC the power to take money from those they suspect of unfairly avoiding tax, with money only handed back - with interest - if the taxpayer wins a legal challenge in the courts.
SaintSlutface
03-21-2014, 01:30 AM
Was looking at how to pick a tax preparer and the IRS has pretty good tips. Wanted to put it here for anyone else like me who says fuck these numbers and shit.
http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer
tripleinfinity
03-22-2014, 07:32 AM
camming is still worth it, as far as traviling out of the country and still being able to make american dollars where they stretch further, it can make for a decent life overseas. but here... meh. most money in camming is with affiliate programs.. i know a couple but people people get mad when i post links. best thing to do it google cam affiliate programs, and sign up for "revshare". it can ad up to some serious coin.
tripleinfinity
03-22-2014, 07:33 AM
oh, and just go to H and R block. they handle my taxes
Melonie
03-22-2014, 04:07 PM
camming is still worth it, as far as traviling out of the country and still being able to make american dollars where they stretch further, it can make for a decent life overseas
works for me ... and has for the past 3 years !
gothpuppy
03-26-2014, 07:56 PM
I read that I should save a certain amount of money from what I make for taxes, but I'm not exactly sure how much. Would I take a percentage away from every week or month of making money, or from every single payment I receive from someone? Or would I take a percentage away every time I reach a certain amount of money earned?
Cam_Model_Jess
03-27-2014, 06:02 AM
The standard answer is about 30% of your income should be set aside. It wouldn't matter whether you set it aside from each payment or from a weekly earning total. It comes out to the same amount. Read through this whole thread if you're confused about what to do for taxes. With a few exceptions, you should be paying your estimated taxes 4x/year. The next payment is due April 15th. On April 15th, you pay taxes for your earnings from Jan 1 to March 31st. So you can either fill out the forms to get an exact figure, or you can total up your earnings and multiply by four, subtract standard deduction(s) & exemption(s) as well as any business expenses or other deductions (like student loans). Figure out what the tax would be on that amount (there's a chart online) and then pay on that.
How I do it varies depending on how much time I have. Sometimes I just send in 30% of my income, but most of the time I do all the paperwork so I'm not overpaying. I think my effective tax rate is usually around 24% because of deductions.
~Carmen~
03-27-2014, 06:14 AM
I just found out that I owe the IRS $10. I can't believe it turned out almost even with quarterly estimates and deductions. Patting myself on the back:P
Neonsugar
03-30-2014, 02:23 PM
So ladies I should set aside 15% of what I make in a seperate account? I live in Connecticut btw.
Neonsugar
03-30-2014, 02:24 PM
Also dumb question..say if you have a vanilla job and you get back x amount of money...could you use that towards what you owe with camming??
Cam_Model_Jess
03-30-2014, 04:19 PM
Unless you have lots & lots of deductions, dependants, are low income, you'll probably have to pay about 25% or more, but it also depends on how much of your income is wages (hourly pay job).
Money is money. It's all one big pot. The government isn't going to give you a return on vanilla wages then send you a bill for camming taxes. 10-5=5 but 10-6+1 also equals 5.
The government also doesn't care what you use your tax return for.
If you got a return in 2014 for 2013 wages & need to pay 2014 1st quarter taxes with it... Do it. Or just don't acceptthe return; apply it to next year's payments.
I should've gotten a return this year, but I told my accountant to have the IRS apply it to 2014 taxes due, and I'll just decrease one of my quarterly payments by that amount. No point in getting a check only to turn around two months later & give it back. Unless you need that money now, or you just don't like the government collecting interest on your money.
Melonie
03-30-2014, 05:35 PM
So ladies I should set aside 15% of what I make in a seperate account? I live in Connecticut btw
if you have a vanilla job and you get back x amount of money...could you use that towards what you owe with camming??
Unfortunately, when more than one source of total income is involved, progressive tax brackets become an issue. Or put another way, the tax rate calculated by the vanilla employer's payroll service assumes that the vanilla job earnings are your only source of income ... and the amount of 'estimated taxes' they withhold from each paycheck is sized accordingly. But if you add a second source of income, the 'effective' average tax rate owed on those vanilla job earnings will increase ... because higher total income will push you into a higher % income tax bracket while the size of the personal exemption and standard deduction remain unchanged.
In terms of set-asides for estimated taxes, 15.3% is the bare minimum to cover Social Security taxes due on camming income. If total earnings between vanilla job and camming income is only $10,000 this might be enough. However, at higher total income levels, US federal income tax and CT state income tax are going to start to kick in. If your combined income level is in the $50,000 ballpark, between federal and state taxes, the effective tax rate is likely to be in the 25% ballpark.
Cam_Model_Jess
03-31-2014, 08:20 AM
Put more basically, Neonsugar, your employer assumes that you make only your wages (what you earn at your vanilla job) which means that for tax purposes the employer assumes you make less than you do, and you're paying less taxes. So you may actually end up owing MORE taxes on your vanilla wages too.
To possibly help reduce the amount owed in your quarterly taxes, you can choose to increase the amount your employer is withholding. For example, if you'd claimed "1" exemption at your vanilla job, you can change it to "0" which will allow your employer to withhold more of your wages for taxes. This could be a very small change, or it could be a very large change. Everyone's situation is so different that it's hard to give very specific advice. Your deductions, income level, dependents, and wages to SE income ratio are all going to affect your taxes owed.
ashley jane
03-31-2014, 11:48 AM
So let's say I estimate to make $3,000 but end up making $4,000 at the end of the year. Like I kept up with the $3,000 but all of a sudden end of the year I start making more. So on the last quarterly payment I just add more? Same with if I make less. I don't hit the target of 3,000 do I just send in less money on the last one?
ashley jane
03-31-2014, 11:54 AM
The standard answer is about 30% of your income should be set aside. It wouldn't matter whether you set it aside from each payment or from a weekly earning total. It comes out to the same amount. Read through this whole thread if you're confused about what to do for taxes. With a few exceptions, you should be paying your estimated taxes 4x/year. The next payment is due April 15th. On April 15th, you pay taxes for your earnings from Jan 1 to March 30th. So you can either fill out the forms to get an exact figure, or you can total up your earnings and multiply by four, subtract standard deduction(s) & exemption(s) as well as any business expenses or other deductions (like student loans). Figure out what the tax would be on that amount (there's a chart online) and then pay on that.
How I do it varies depending on how much time I have. Sometimes I just send in 30% of my income, but most of the time I do all the paperwork so I'm not overpaying. I think my effective tax rate is usually around 24% because of deductions.
Is that just for federal? Then I just figure out my state taxes? I googled my states taxes and it seems to be basically the same formula as what you are saying.
Melonie
04-01-2014, 03:13 AM
^^^ yes, considering that you will already have earned the 3 months worth of income on which the estimated tax payment is due, you can 'tweak' the size of the payment to match the actual amount of money earned. And yes state estimated tax payments work the same way as federal in terms of due dates ... but obviously the states have no SSI tax and their 'effective' income tax % is lower than the federal income tax %.
Jinja
04-02-2014, 10:38 AM
I am confused about which form to use to pay estimated taxes for my LLC. Based on my research it looks like I should be using form 1040ES, but the payment vouchers ask for my social, not my company's EIN. Does anyone else have an LLC on here? Which form do you use?
Melonie
04-03-2014, 12:23 AM
^^^ usually, single member LLC's, single owner S-Corps etc. are treated as 'disregarded entities' for US federal and state tax purposes. As such, the single member / owner needs to file a 1040-ES . Also since LLC's pass through' all taxes to the single member ( meaning that the LLC doesn't actually owe taxes the single member does ), it is the member ( and the member's SS# ) that needs to be listed on the 1040-ES.
The only time this doesn't apply is for a C-Corp, which is subject to it's own corporate taxes ... or for certain types of partnerships where all partners are 'not created equal'.
I was using Turbo Tax home and business today just to get an idea of what i might owe. Turns out i might get a refund.. well that is if i am doing it right haha.
But i did notice this and it confused me. whenever i entered write offs my refund went down. how could this be? i qualified for the EIC (earned income credit) maybe that has something to do with it? could i possibly just leave off my business expenses to get the higher refund? i didn't buy much to be honest just a few small things i just don't want to get in trouble. taxes are confusing enough as it is.
Melonie
04-10-2014, 03:29 AM
^^^ if you were entering your business expenses in the business income section ( Schedule C ) any refund amount would NOT have gone down. If TurboTax is showing a ( red ) negative number in the top of the screen 'refund' window, that is the amount you OWE the IRS. Actual refunds show up as a ( green ) positive number.
Logical assumption is that, unless you also had a vanilla job with lots of paycheck tax withholding during 2013, unless you had made significant quarterly estimated tax payments during 2013, unless you have children that allow you to claim 'head of household' status plus child related tax exemptions / credits, etc., there's no way that you're going to get an actual refund if you had any significant amount of 'independent contractor' business income. Logical assumption is that your entering of additional business expenses was in fact lowering the amount of taxes you OWE the IRS.
you are right Melonie i am claiming head of household and i do have children. it's the first time i have been able to Claim head of household. so i was very surprised to see those green numbers at the top of turbo tax. Then i went in and started filling out my schedule C and it started making those pretty green numbers go away ;(
any idea why that would happen?
anonymous camgirl
04-10-2014, 10:52 AM
I am NO melonie .. but it's because of the amount of income, Your adjusted gross income is now to low to claim the maximum amount of EIC or whatever credits you claim for having children.. it depends on that. And then when you factor in your business expenses so therefore you are making less money now.. AGI
If you ever did your taxes the old school way on paper you could see the chart of this that they have for every income amount. In other words you have to be in a certain income bracket to claim the maximum amount of the EIC and the child dependent care credit which your refund more than likely is heavily weighted on.
you are right Melonie i am claiming head of household and i do have children. it's the first time i have been able to Claim head of household. so i was very surprised to see those green numbers at the top of turbo tax. Then i went in and started filling out my schedule C and it started making those pretty green numbers go away ;(
any idea why that would happen?
Thank you! i figured it was something like that!
i really did not buy much of anything for my business could i just leave them off? or would that make it suspect? i can't really claim most of what i bought anyway because of the house wife test.
Cam_Model_Jess
04-10-2014, 11:22 AM
You don't have to claim expenses. They're not recorded anywhere unless you're using a business credit card or account as proof for other things. It's your choice what you claim & what you don't.
Melonie
04-10-2014, 11:38 AM
it's because of the amount of income, Your adjusted gross income is now to low to claim the maximum amount of EIC or whatever credits you claim for having children.. it depends on that. And then when you factor in your business expenses so therefore you are making less money now.. AGI
If you ever did your taxes the old school way on paper you could see the chart of this that they have for every income amount. In other words you have to be in a certain income bracket to claim the maximum amount of the EIC and the child dependent care credit which your refund more than likely is heavily weighted on.
While this situation is supposed to be very rare, indeed it does happen. The earned income tax credit and other 'refundable' tax credits are all based on 'bizarre' formulas ... and sometimes a particular individual income / filing situation creates equally bizarre results. But hey, it's legal so why not maximize your refund.
exactly what i wanted to hear melonie haha
once again thank you guys! thought i was messing something up glad to know i am not.
LadyJuliette
04-12-2014, 08:04 AM
Hey Ladies, hope all is well and everyone is prospering. I had a few questions, I'm filing my taxes on freetaxusa.com what are you guys putting as occupation? I filed last year put internet marketing (schedule c) I have a son and I'm married he was on unemployment so we did receive a return. I didn't file quarterly taxes though, I don't make much this year my income was like 11,500. I don't have any 1099's from any sites and worked mostly independent. I don't want to break any laws or be penalized. Are their any suggestions as to how I should handle filing now because I haven't filed my quarterly??
anonymous camgirl
04-12-2014, 08:39 AM
You probably won't owe any money at all.. seems like your income is to low for 3 people and the fact you have a child.. you only pay quarterly taxes when you owe over $1000 per year. Well actually that's not true.. lol.. If you owe ANY taxes at all you have to pay quarterly taxes.. but if you never did and you owe over $1000 for the year there is an underpayment penalty. But don't worry about that til your tax software tells you have to pay quarterly.
And for the last 11 yrs I have put Video Chat Host.. that's what they call us on imlive and that was one of my first sites, so i don't dare change it now..LOL
Hey Ladies, hope all is well and everyone is prospering. I had a few questions, I'm filing my taxes on freetaxusa.com what are you guys putting as occupation? I filed last year put internet marketing (schedule c) I have a son and I'm married he was on unemployment so we did receive a return. I didn't file quarterly taxes though, I don't make much this year my income was like 11,500. I don't have any 1099's from any sites and worked mostly independent. I don't want to break any laws or be penalized. Are their any suggestions as to how I should handle filing now because I haven't filed my quarterly??
Melonie
04-12-2014, 09:15 AM
I'm filing my taxes on freetaxusa.com what are you guys putting as occupation? I filed last year put internet marketing (schedule c)
The IRS likes consistency, so I'd put exactly the same entry you used last year.
Are their any suggestions as to how I should handle filing now because I haven't filed my quarterly
If you didn't actually 'owe' any taxes last year ... i.e. if you received more dollars back in the form of refundable tax credits than you actually 'paid in' last year ... then you don't need to worry about not having made any quarterly estimated tax payments in 2013. And if you don't expect any major changes in income level / exemptions / filing status during 2014, you really don't need to worry about quarterly estimated tax filings / payments in 2014 either.
Again, for the benefit of other SW readers, we're discussing a 'rare' case where the total income level is comparatively very low, PLUS child dependent exemptions can be claimed, PLUS child related refundable tax credits can be claimed, PLUS lower tax rate 'head of household' filing status can be used. A typical 'single' camgirl earning the same comparatively low level of income, but without the dependent exemptions, without the refundable tax credits, and having to use higher tax rate 'single' filing status, will wind up 'owing' money to the IRS.
kittykrane
05-04-2014, 02:01 PM
We had out taxes done for us this year. I was able to claim a portion of my new laptop, but when I mentioned lingerie and costumes the tax advisor told me no, because those are things I can use elsewhere. She didn't even suggest a portion of that stuff toward work and I didn't save all the receipts. I have only been putting 20% aside for taxes but I need to do 30% for the rest of the year. Great thread. Took me long enough to get around to it.
Melonie
05-05-2014, 07:29 AM
^^^ indeed, 15.3% in Social Security / medicare taxes applies to every single dollar of camming income. From there the 10% federal income tax bracket kicks in immediately, rising to 15% above $9,000 in total earnings, and rising again to 25% above $36,900 in total earnings. So even with typical exemptions and deductions, the combined 'effective' tax rate on camming income is likely to be at least 25% even for 'part time' camgirls.
luvnrockets
05-11-2014, 05:11 AM
Hey, quick question if someone here can help...Do you write off your bathroom, or just the cam room? I use the bathroom between shows, clean toys and get ready in there, so technically some water and electricity are going towards my job. But I'm not sure if that's really pushing it.
~Carmen~
05-11-2014, 05:20 AM
Hey, quick question if someone here can help...Do you write off your bathroom, or just the cam room? I use the bathroom between shows, clean toys and get ready in there, so technically some water and electricity are going towards my job. But I'm not sure if that's really pushing it.
Just the camming room. My tax man always asks me for square footage of the whole house, plus my camming room. I also give him totals on utilities, cable, house insurance and rent. I believe you can write off a portion of your water and electric bills.
Melonie
05-11-2014, 12:05 PM
^^^ Carmen is exactly right about taking this 'home office' tax deduction. However, make sure that everything else involving your taxes is in order, since taking the 'home office' tax deduction is likely to place your tax return at a significantly higher risk of being audited.
alibby
06-13-2014, 03:20 PM
Hello beautiful ladies! :D i'm so excited to get into this field and quit my crappy minimum wage day job that i don't even make 100/week at (barely 20 hrs/week though.) Anyway, there have been some discouraging factors, taxes being the biggest and it scares me to death, i'm trying to understand what the amazingly intelligent Melonie is saying, but its all french to me lol. Anyway, about my situation, I've never filed a tax a day in my life don't have a bank account, none of that adult stuff. I'm moving with my bf who pays all the major bills, i'll be paying my phone, food and credit card mainly. I don't know what to shoot for b/c I don't know what they'll take. Probably a lot since I don't have any big expenses, right? My bills only come to about 200, but I'd like to have some extra cash (duh, or i'd just stay making 7.40/hr lol). I hope this is making sense and this is in the right thread, any help i immensely appreciated!! xo
KatyBoleyn
06-13-2014, 05:18 PM
Get a bank account for yourself. It trickles into a lot of other things...like your credit history and credit rating and background checks to see that you're a real adult. Then just sock away 25-30% to pay your tax bill at the end of the year into an attached savings or money market account. If you end up owing less, just keep it socked away or buy something nice. If you owe more, you have 4 months to come up with the difference.
alibby
06-13-2014, 05:32 PM
Get a bank account for yourself. It trickles into a lot of other things...like your credit history and credit rating and background checks to see that you're a real adult. Then just sock away 25-30% to pay your tax bill at the end of the year into an attached savings or money market account. If you end up owing less, just keep it socked away or buy something nice. If you owe more, you have 4 months to come up with the difference.
thank you and will do! i was just on your site this morning looking up info btw lol, what a coincidence. thanks a lot :)
Cam_Model_Jess
06-15-2014, 07:58 AM
I don't know what to shoot for b/c I don't know what they'll take. Probably a lot since I don't have any big expenses, right?
Not to pick apart what you said, but it might be worth noting that your rent & phone bill don't usually play a part in how much you owe in taxes. If you're claiming part of your rent, etc... that's a different matter. But I just thought I'd mention this because I know it's not obvious to everyone. I used to be a little confused about it myself. The IRS expects the same amount of money from me regardless of how big my student loan payments are or how high my rent is. However, if your income is very low, you probably won't owe much at all.
alibby
06-15-2014, 09:49 PM
Not to pick apart what you said, but it might be worth noting that your rent & phone bill don't usually play a part in how much you owe in taxes. If you're claiming part of your rent, etc... that's a different matter. But I just thought I'd mention this because I know it's not obvious to everyone. I used to be a little confused about it myself. The IRS expects the same amount of money from me regardless of how big my student loan payments are or how high my rent is. However, if your income is very low, you probably won't owe much at all.
oh wow, i didn't know that thanks alot! do some girls claim their phone if they do phone sex?
Melonie
06-16-2014, 06:58 AM
^^^ actually, if the apartment lease, phone service, internet service etc. are in a boyfriend's name and not your own name, technically speaking you won't be able to claim ANY of these as business expense tax deductions and 'survive' an IRS audit.
alibby
06-16-2014, 12:51 PM
^^^ actually, if the apartment lease, phone service, internet service etc. are in a boyfriend's name and not your own name, technically speaking you won't be able to claim ANY of these as business expense tax deductions and 'survive' an IRS audit.
darn i guess i cant on my laptop then, but my phone is in mine, so i could write that and my webcam off? which i got just for camming and videos.
alibby
06-16-2014, 12:52 PM
^^^ actually, if the apartment lease, phone service, internet service etc. are in a boyfriend's name and not your own name, technically speaking you won't be able to claim ANY of these as business expense tax deductions and 'survive' an IRS audit.
darn i guess i cant on my laptop then, but my phone is in mine, so i could write that and my webcam off? which i got just for camming and videos.
alibby
06-16-2014, 12:53 PM
woops didnt mean to double reply
Melonie
06-17-2014, 03:02 AM
but my phone is in mine, so i could write that and my webcam off? which i got just for camming and videos.
yes for sure on the webcam. Yes on phone if another phone is available for personal use.
alibby
06-17-2014, 06:11 AM
yes for sure on the webcam. Yes on phone if another phone is available for personal use.
oh okay! thank you so much!
LaughinDiva
06-28-2014, 05:25 PM
You need to get an accountant that is familiar with working at home. Were indipedant contractors so you should also be able to write off portions of rent, utilities, supplies to keep your self up (clothes, hair,, shoes) . Since its done from home. If you use your phone a % of your bill. If you find an accountant who hmmms and haaas you and doesnt want to keep looking. Make sure they know their shit or are familiar with exotic entertainment at the least.