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KatyBoleyn
06-30-2014, 07:36 PM
Rent and utilities are a maybe, you need to meet some "tests" to qualify. You need to have it set up a certain way also to be very safe with taking those deductions. Should be in your name or business name, should be your place of work, can't be your place of sleep or living, etc. Separate buildings with separately paid/second phone/cable/internet lines are safest.

Supplies, generally no. Your accountant may tell you what you want to hear (and you hear all kinds of crazy shit), but if he's following the law there's actually very little in a typical home-based cammodels closet that is tax deductible. Hair, clothes (except for big Vegas showgirl costumes), make-up, lube, wipes, gym memberships, tanning, typical sex toys, plastic surgery, etc are NOT deductible. Never have been, and if US models are taking these they were either lied to, are lying, or setting themselves up for nastiness up to 7 years later and just think they got away with it for now. There was ONE porn star that managed to fight the IRS for her implant deductions, but the IRS came out very clearly and said that this was a special exception and still very against policy.

Most electronics though typically can be deducted for video/broadcasting/work purposes (Xbox...no, new webcam...yes). Fuck machines might fall into a gray area :) Canadians get a little more slack also, but not Americans unless there's a new whitepaper I missed from the IRS.

The accountant doesn't make the call or judge anything, its his responsibility to try to keep your ass out of court for tax fraud/evasion and nothing else. If he's certified, he will be partially responsible also for any fallout. Any of them worth their dockers knows the rules and if he's willing to risk bending them by cooking your books a bit, go for it. For the under $50,000/year crowd, trying to take those deductions won't have any massive effect on your tax bill anyways, so why go through the effort of hunting down a dirty accountant that would charge you more than the money you save just Turbotaxing and playing safe?

Melonie
07-01-2014, 09:10 AM
the IRS principle that KatyBoelyn is referring to is the so-called 'housewife test'. Under that IRS principle, attempting to deduct things as business expenses which a 'housewife' would also spend money on with no business reason for doing so, are NOT deductible. Generally speaking, 'housewives' buy department store make-up, bikinis, lingerie, average sized breast implants, gym memberships, tanning sessions, sex toys etc. This doesn't mean that the IRS is guaranteed to disallow 100% of any business expense tax deductions you attempt to take for such items. But attempting to claim these deductions WILL increase your probability of being audited ... usually with negative results.

In the specific case of 'professional sized' breast implants, indeed a feature dancer with 3000cc implants went to tax court over a dispute about the deductibility of her plastic surgery bills. A tax court judge decided that because her huge breast implants were a source of 'problems' in her personal life ( unwanted attention, staring, cat-calls etc. ) that their 'benefit' was strictly for business reasons ... and as such the business expense tax deduction should be allowed. This is referred to as the 'Chesty Love Letter Ruling' ... and can be used by any dancer or camgirl who gets 'professional sized' breast implants ( generally accepted to mean more than 1000cc each ) to deduct the cost of their surgery and follow-up care as a business expense.

AngelMari
07-02-2014, 03:03 PM
I own my home and have other businesses on the side. I keep receipts for everything, and have credit cards for certain things. I write off clothes, nails, hair, makeup, shoes...anything that has to do with camming. Plus internet connection, phone, portion of my mortgage etc etc. I make 1000 a week only working 15-20 hours and I keep my rates at 2.99 and 3.99. So you can do that as well if you keep up with it. Your best bet is to hire a CPA, you should be filing quarterly as well. I just bring my shoebox full of receipts and bills and he does the rest. Plus you're working with a professional he can tell you the exact amount you need to be at yearly/quarterly for lower taxes. Sucks to hit the threshold and only go over a grand or two, then you get hit with hefty taxes. Keep working and go find yourself a good CPA, one that can help you invest and whatnot. Mines only 250-350 every quarter, seems spendy but it's worth it.

KatyBoleyn
07-03-2014, 07:38 AM
When I worked at the CPA firm that was one of my jobs to sort boxes of receipts people brought in - basically weeding out the valid from the junk first. Valid receipts then got categorized into their own itemized categories of full/partial . Maybe that's where people assume "they just wrote off everything". We got receipts for Gamestop purchases and fast food all the time that basically got tossed out, and mile-long Walmart receipts we had to go through line-by-line and remove groceries, gum, cosmetics, and hunting supplies they bought with their single "business" item. The CPA I worked for was "if in doubt, line it out." Most people never asked and he never actually told them the total that was used.

DominicanDream
07-27-2014, 02:57 PM
So...after reading this, I have one question.

I am strongly considering leaving my job next year to be a full-time Stay At Home Mom and do camming as my only source of income. In order to avoid tax-drama, would it behoove me to speak to a CPA before I start, tell the CPA my earning goals that way I can have an idea of how much I should be putting to the side every week?

Has anyone done that?

Melonie
07-28-2014, 10:27 AM
Actually, this is fairly easy to figure out without initially resorting to an accountant. Key questions are ...

- will you be able to file as a 'head of household' single mom i.e. you and your child and nobody else residing at a particular address ?

- are you entitled to claim the child as your dependent ( versus child's father attempting to claim the child as his dependent ) ?

- will you be filing a 'married - joint' return based on combined income with a husband ?

ashleigh614
08-06-2014, 05:54 PM
This is probably a dumb question but I am new to the industry. I am using camming as supplemental income. Therefore I have smaller goals...around $500 a month. Are taxes always just a percentage of your income? I'm reading some of your stories about owing thousands of dollars and now I'm getting nervous

Melonie
08-07-2014, 03:08 AM
^^^ taxes are based on a percentage of your COMBINED income. If you have a 'straight' job, plus supplemental income from camming, and the 'straight' job employer does not now about the supplemental camming income, the 'straight' job employer's payroll system will not withhold enough estimated taxes from each paycheck to actually cover the higher effective tax rate which now applies to that paycheck. And, obviously, it is up to the camgirl to self-withhold estimated taxes from her camming income. So yes it's entirely possible for a girl who earns say $25,000 per year from a 'straight' job, plus say another $10,000 per year in camming income, to not only owe ~$2,500 or so in taxes on her camming income but also owe an additional ~$1,000 on her 'straight' job income ( beyond the amount which the employer's payroll system withheld from her paychecks ).

It's rather difficult to come up with accurate estimates for this effect, because different states have different income tax rates and different 'tax brackets' ( percent tax vs income thresholds ), because eligibility for certain tax 'credits' is lost when combined income rises above a certain threshold of eligibility, etc., because the price of taxpayer subsidized 'discount' public health exchange insurance premiums may retroactively increase due to higher combined earnings ( which the IRS will 'claw back' next April in the form of an increased tax bill ), etc. Because of these eligibility thresholds based on total combined income, there are likely to be situations where earning an extra $1,000 from camming ... but in doing so pushing yourself into losing eligibility for 'tax credits' or pushing yourself into a higher priced public health insurance bracket ... could 'cost' the camgirl more than the extra $1,000 of earnings !

Melonie
08-08-2014, 03:07 AM
^^^ that's generally true, providing that camming is your only source of income, and provided that amount of camming income involved is under $100k per year. However, when more than one income source is involved, that may no longer be the case because the additional income from camming not only creates its own tax bill, but also increases the tax bill due on the other income source.

missadoroxo
08-13-2014, 05:53 PM
I started camming late July. Now, I JUST got an apartment today (moving in the end of August; $950 a month, all utilities, cable, wifi). I'm basically living as basic as I can because I know I need to save money, especially after reading this thread. It's scaring me. Taxes confuse me, so it just gives me a big headache. Since I just started camming I'm not making a lot of money yet. My goal is to make $570 a week. I also have another job I've had since April at a salon ($10 an hour, on the books, so taxes are taken out). I get about $180 a week plus tips. Now, I'm wondering after expenses and tight budgeting, is this enough every month for me to actually pay my taxes quarterly and still have enough money to set aside to save for myself? Should I wait to pay taxes in January (6 months) or after 3 months? Will the taxes on my salon paycheck go up? What should I do? I live in Long Island, New York and LI doesn't pay NYC taxes. I'm single with no children and filed as single in April when I got hired at the salon. I also had a previous job from May to mid July that was on the books too which I made about $460-560 every 2 weeks plus tips.

Aurora14
08-13-2014, 11:18 PM
From my past experience, I waited until tax time to file my first year I was 'self employed'. I didn't have an interest penalty because it was my first time filing, but it did tell me that I had to pay my quarterlys or there would be fines. It also gave me an idea of what my estimated earnings would be for the next year. At the end of the filing, it told me how much my estimated taxes for the next year were. It had the option to print out the payment vouchers and payment deadlines. You can adjust your payments and send in more if you are planning on making more. I use TurboTax Business. It totally walks me through each step, one at a time.

Going off of your current $570/wk goal we'll assume your taxable income for the year is $25,000. (These #s are all estimates. DO NOT THINK THEY ARE THE FOR SURE THING You won't know your real #s until you file) For a single person that is around $3,000 owed. Your vanilla work covers a portion, but not all. To be safe, try to put aside 20% to cover what your vanilla work may not. Your salon check won't change unless you adjust you W-4 to withhold more or less. When you file, you will be using the W-2s your vanilla work sends you and your camming 1099s. Because of the 1099s you will have to use the Schedule C and upgrade to the business edition. (I think it's like $80)

Also, roam through Dollar Den. I recently made a thread that has links to threads all about taxes. There is so much info in Dollar Den, it's really helpful.

missadoroxo
08-14-2014, 01:35 PM
Thank you. That makes me feel better :) I'm actually picking up another job part time and it may be off the books, so hopefully it will make up for what I need to put aside for taxes.

Melonie
08-15-2014, 03:13 AM
^^^ in a scenario where there is camming income PLUS straight job income, some clarification is needed.

In a 'straight' paycheck only scenario with a $10,000 annual gross income, effective tax rate might be around 10% = $1,000 ... thanks to the low income tax bracket plus eligibility for 'low income' tax credits ( federal and state )

In a 'self-employed' only scenario with a $25,000 annual gross income, effective tax rate might be around 20% = $5,000 ... mostly due to the 15.3% 'self-employed' social security tax.

But in a combined scenario with $10,000 in 'straight' job income plus another $25,000 in 'self-employed' income, the combined effective tax rate is likely to rise to 25% ... because a higher income tax bracket applies to the combined $35,000 annual gross income, because eligibility for 'low income' tax credits will be lost or reduced, etc. 25% of the $10k worth of 'straight' job income = $2,500 ... meaning that employer tax withholding from 'straight' job paychecks will probably be $1,500 'short'. So besides owing $25k * 25% = $6,000 worth of taxes on the self-employed camming income, another $1,500 will need to be paid to cover the 'shortfall' in withholding on the 'straight' job paychecks.

Also, given that you live in NY, it's worth checking out other potential consequences of increasing your combined earnings to the point where your earnings exceed 200% ( = $23k ), 300% ( = $34k ), 400% ( = $46k ) etc. of the 'official poverty level'. Exceeding these income thresholds may disqualify you, or reduce the subsidies available, for SNAP, subsidized rent, subsidized utilities, discount public health exchange insurance premiums etc. Obviously, this may or may not apply in your particular situation.

missadoroxo
08-15-2014, 07:16 AM
^^^ in a scenario where there is camming income PLUS straight job income, some clarification is needed.

In a 'straight' paycheck only scenario with a $10,000 annual gross income, effective tax rate might be around 10% = $1,000 ... thanks to the low income tax bracket plus eligibility for 'low income' tax credits ( federal and state )

In a 'self-employed' only scenario with a $25,000 annual gross income, effective tax rate might be around 20% = $5,000 ... mostly due to the 15.3% 'self-employed' social security tax.

But in a combined scenario with $10,000 in 'straight' job income plus another $25,000 in 'self-employed' income, the combined effective tax rate is likely to rise to 25% ... because a higher income tax bracket applies to the combined $35,000 annual gross income, because eligibility for 'low income' tax credits will be lost or reduced, etc. 25% of the $10k worth of 'straight' job income = $2,500 ... meaning that employer tax withholding from 'straight' job paychecks will probably be $1,500 'short'. So besides owing $25k * 25% = $6,000 worth of taxes on the self-employed camming income, another $1,500 will need to be paid to cover the 'shortfall' in withholding on the 'straight' job paychecks.

Also, given that you live in NY, it's worth checking out other potential consequences of increasing your combined earnings to the point where your earnings exceed 200% ( = $23k ), 300% ( = $34k ), 400% ( = $46k ) etc. of the 'official poverty level'. Exceeding these income thresholds may disqualify you, or reduce the subsidies available, for SNAP, subsidized rent, subsidized utilities, discount public health exchange insurance premiums etc. Obviously, this may or may not apply in your particular situation.

Thank you Melonie :) Since I am new to this do you have any advice for being able to make enough money to pay expenses and taxes and still have money left over? Is there a specific amount I should be making? I'm hoping to get another partime job soon to hopefully balance out the loss of money I need to put aside for taxes. Should I just find someone to talk this over with so I can create a plan for myself?

Melonie
08-15-2014, 10:56 AM
^^^ all I can say is that banks and the gov't both use a figure of 31% as the maximum amount of gross income that should be spent on housing. Thus based on a $900 per month rent cost, 900 / .31 = ~$2900 per month or ~$700 per week of gross income would be required to meet the banks and gov'ts criteria for 'enough' income. In point of fact, if self-employed income is involved, the total should be a bit higher still because of the higher tax rate which applies to self-employed income. But on the 'flip side', utilities are included in your rent payment. Thus ~$700 a week in gross earnings should be adequate.

missadoroxo
08-16-2014, 01:38 PM
^^^ all I can say is that banks and the gov't both use a figure of 31% as the maximum amount of gross income that should be spent on housing. Thus based on a $900 per month rent cost, 900 / .31 = ~$2900 per month or ~$700 per week of gross income would be required to meet the banks and gov'ts criteria for 'enough' income. In point of fact, if self-employed income is involved, the total should be a bit higher still because of the higher tax rate which applies to self-employed income. But on the 'flip side', utilities are included in your rent payment. Thus ~$700 a week in gross earnings should be adequate.

Thank you so much, Melonie! :) I appreciate your help and knowledge! I figured that would be how much I would need to make every week.

DominicanDream
08-18-2014, 08:21 AM
Hopefully this question hasn't been already asked lol.

So let's say I'm doing

-Camming on SM
-Video clips

and working on other sites here and there..side hustles.

Isn't there some way I can just add up all of those earnings and do taxes for what I made as a lump sum? Instead of having to do separate taxes for my video clips and camming? Which is more beneficial?

Melonie
08-19-2014, 03:37 AM
Indeed !!! You can, and should, account for camming ( on multiple webcam hosts ) and merchandise sales ( on multiple host sites ) as a single business activity.

You can add all of your quarterly earnings together to come up with one quarterly 'gross earnings' figure , subtract qualified busineses expenses to come up with one quarterly 'net earnings' figure, and then calculate one estimated tax figure, file one quarterly estimated tax voucher, and send one quarterly estimated tax payment check to the IRS. Obviously, if your state levees it's own income tax, you'll have to do a second estimated state tax calculation, file a second state quarterly estimated tax voucher, and send a second quarterly estimated tax payment check to your state tax agency.

The only time where separate sources of income will matter is on Schedule C ... which you will file along with your annual tax returns next April. When you fill out Schedule C, you will need to enter the actual incomes you received from each different income source ... which will / must correspond with the amounts reported by those different income sources via separate 1099-misc forms they will issue to you and the IRS next February or March.

Snowy0Star
08-22-2014, 11:46 AM
I didnt file or pay my taxes this year for last year because i couldn't afford to even file (i was in a really bad spot and needed all the money i was making just to get buy) I'm doing a better now but still having a hard time saving for taxes. Right now I owe about 4500 in taxes and I live in an area with not so good internet like the lines in my area in the ground are an old outdated type (another camgirl ran some test and thats what she told me) Pretty often I get a connection turbulence i guess you could say. I try to look up websites and i get DNS Look up errors and my cam feed lags and gets choppy (vid and sound) for a few minutes then its fine again. I'm paying 100 just for my net and Its the best cox can give so I know its not that.

I know I will make a lot more when I can move out of here. My question is how long can I go without not paying my taxes before theres major issues with the IRS? With the money that I'm making now I have to chose one or the other between working on paying back on taxes for 2013/2014 or savings up to move out then working on getting back on track with taxes.

AngelMari
08-22-2014, 12:03 PM
I didnt file or pay my taxes this year for last year because i couldn't afford to even file (i was in a really bad spot and needed all the money i was making just to get buy) I'm doing a better now but still having a hard time saving for taxes. Right now I owe about 4500 in taxes and I live in an area with not so good internet like the lines in my area in the ground are an old outdated type (another camgirl ran some test and thats what she told me) Pretty often I get a connection turbulence i guess you could say. I try to look up websites and i get DNS Look up errors and my cam feed lags and gets choppy (vid and sound) for a few minutes then its fine again. I'm paying 100 just for my net and Its the best cox can give so I know its not that.

I know I will make a lot more when I can move out of here. My question is how long can I go without not paying my taxes before theres major issues with the IRS? With the money that I'm making now I have to chose one or the other between working on paying back on taxes for 2013/2014 or savings up to move out then working on getting back on track with taxes.
From my experience your best bet is to contact them and set up a payment plan, could be 20 a month could be 200 (depends on your earnings currently and the situation). If you go to them first and explain they are always willing to work with you, don't go a whole year and then ask them.

Snowy0Star
08-22-2014, 12:11 PM
From my experience your best bet is to contact them and set up a payment plan, could be 20 a month could be 200 (depends on your earnings currently and the situation). If you go to them first and explain they are always willing to work with you, don't go a whole year and then ask them.

With pretty much 4 months left in this year my plan is to file for this year and last year and get on a payment plan but how much would they want per month so i can work on saving up to move out ? If i can move out i can pay back my taxes superfast but would that really be the smart thing to do or should i just tuff it out and stay where i am untill my taxes are back on track?

AngelMari
08-22-2014, 07:08 PM
If you haven't filed and haven't been paying your quarterlies idk what they would do. BUT I do know they are going to want to see you start paying quarterly, as for how much they would want a month it depends on living expenses and how much you make. If you only bring in 2K a month and your rent alone is 1K they aren't going to make you pay 200 a month. Try and get in your Dec payment if you can, it would help. They charge interest on you. Sounds as though you need to get out asap so you can make better money.

Snowy0Star
08-22-2014, 07:35 PM
If you haven't filed and haven't been paying your quarterlies idk what they would do. BUT I do know they are going to want to see you start paying quarterly, as for how much they would want a month it depends on living expenses and how much you make. If you only bring in 2K a month and your rent alone is 1K they aren't going to make you pay 200 a month. Try and get in your Dec payment if you can, it would help. They charge interest on you. Sounds as though you need to get out asap so you can make better money.

Thanks for the advice. I'm going to plan to move ASAP and work with them as much as i can .

felidae
08-22-2014, 09:58 PM
Hey to Canadian girls in regards to taxes I am having issues finding anything really. If someone from Ontario could message me I would really appreciate it! I am using only mygirlfund right now and haven't made much at all but I'm unsure about whether or not I will need to file taxes from the site

Melonie
08-23-2014, 01:34 AM
In regard to taxes for Canada, UK etc. there are lots of threads in the Dollar Den forum



My question is how long can I go without not paying my taxes before theres major issues with the IRS?

The fact is that if you webcam hosts issue 1099's means that the IRS will know that you have income. If IRS computers can't match up those 1099's to a tax return which you filed, the IRS will know that you have unreported income. So you could already have issues with the IRS ... but they simply haven't gotten around to acting on them yet.

Generally speaking, self-employed camgirls will wind up owing at least 25% of their gross incomes in US taxes. Essentially this means that, with every passing quarter, the IRS expects you to pay 25% of your webcam checks in the form of estimated taxes. Also, for unpaid tax time payment plans, the IRS usually only allows a one year payback period. And, of course, if quarterly taxes are unpaid, the IRS can start adding interest charges and under-withholding penalties.

Putting this altogether basically means that if you were to pay nothing in estimated taxes for the balance of 2014, were to file a 2014 tax return in January, and were to file for a time payment plan, you would need to pay something like 55% of the webcam host checks you receive in 2015 to the IRS to be 'even' on taxes due by the end of 2015 Yes, unfortunately that's not a typo ... it comes from 25% for back taxes due on 2014 earnings, plus 25% current estimated taxes due on 2015 earnings, plus penalties and interest. This of course assumes that your average monthly camming earnings are the same for each year.

If you also had 1099 income reports issued for 2013 camming earnings, I'm not sure how the IRS would handle this because their standard one year time repayment plan would be impractical. So if the IRS agreed to extend, this would mean paying 55% of both your 2015 and 2016 income to the IRS in order to be 'caught up' on back taxes by the end of 2016.

If you do in fact owe both 2013 and 2014 taxes, and haven't paid anything toward estimated taxes so far, there is probably enough money at stake to try and seek a 'settlement' with the IRS. However, that 'settlement' may come with other strings attached !

On the 'flip side', if you are actually able to greatly increase you camming income level in 2015 as a result of relocating to an area with faster internet service, then repayment of 2013 and 2014 back taxes becomes quite a bit easier.

Also if you intend to move to a different rental property, or for that matter intend to do anything where your credit rating will be checked, make sure this is completed before the end of 2014. Once the IRS reports to the credit agencies that you owe them back taxes, your credit rating will turn to [email protected]!t !!! Every bank, loan company, landlord etc. knows that they stand zero chance of getting repaid until the IRS first gets all of the money they are owed.

Snowy0Star
08-23-2014, 10:27 PM
^ well so far i owe about 4,200 in taxes at the rate im going ill probably owe about 5K in taxes witch isnt a lot but u can see why i needed all the money with how little i made to actually get the amount in taxes owed that i did/have ... anyway IF the IRS chooses to work with me and get on a payment plan of some kind how much would i need to be making in 2015 to pay back 2013 and 2014 while staying on track during the year if my monthly expenses are about 800 a month? I'm horrible with math and percentages ...

35% of 800 is about 230 a month so thats about 1000 right there to stay on track for 2015
and IF i pay back 5K in 12 payments thats about 400 to pay back 2013/2014
so i would need to be making about 1400 a month right? If theres no interest and fees and other bull ? I'm sure there will be but I just want an idea of what I should be expecting next year .

Melonie
08-24-2014, 06:14 AM
OK let's start with your basic monthly budget of $800 after-tax dollars. Then add $5000 in back taxes + probably another $1000 in interest and penalties = $6000 / 12 monthly payments = $500 per month. To wind up with $800 + $500 = $1300 per month in after-tax dollars, at a 30% tax rate you'd need to earn $1300 * 1.30 = $ 1690. Besides the $500 monthly back tax payments, the IRS is also going to be watching closely that you also actually make your 3 months * $390 = $1170 quarterly estimated tax payments on income you are earning in 2015.

Snowy0Star
08-24-2014, 09:15 AM
OK let's start with your basic monthly budget of $800 after-tax dollars. Then add $5000 in back taxes + probably another $1000 in interest and penalties = $6000 / 12 monthly payments = $500 per month. To wind up with $800 + $500 = $1300 per month in after-tax dollars, at a 30% tax rate you'd need to earn $1300 * 1.30 = $ 1690. Besides the $500 monthly back tax payments, the IRS is also going to be watching closely that you also actually make your 3 months * $390 = $1170 quarterly estimated tax payments on income you are earning in 2015.

thanks that helped a lot

angelbby
09-06-2014, 09:39 AM
i was wondering, how much should we save for taxes.. this is my first full year of camming and will be filing for the first time next year

LaPetiteVierge
09-06-2014, 12:23 PM
Does anyone know if the Quicken software is good for cammodels

Melonie
09-06-2014, 02:01 PM
i was wondering, how much should we save for taxes.. this is my first full year of camming and will be filing for the first time next year

a couple of oldies but a goodies ...

Verde_Blu
09-19-2014, 09:28 AM
Say your goal is $1000 per week, making $48,000 a year. Let's say for the sake of argument 30% of what you make goes toward various tax. That leaves you with 33,600 by the end of the year. What a doosie! Especially if you're working full time. That's next to nothing for fucking yourself with a dildo for horny men. So my question is, is 1000 per week camming a little on the low side, especially if your working full time? I mean 40 hours per week, 52 weeks in a year leaves you around 16 to 17 bucks per hour.

So again is 1000 dollars a week a bit low? It seems like thats the general goal? I hope I'm not the only one a little taken aback by these figures. (or my math could be totally wrong!) I'm new to camming and I want to improve myself and make bigger bucks! Am I missing something? What are your thoughts :)

Hi! My nickname here is Verde_Blu.

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Melonie
09-19-2014, 01:41 PM
While I won't attempt to 'sell' TurboTax, I have been using it for well over a decade... and already have an advance copy on order for 2014 tax return due next spring.

However, there are a couple of 'out of the ordinary' things which TurboTax does not handle very well ... specifically 'royalty' income, and attempting to carry forward a specific amount of positive estimated tax 'balance'. But other than those two 'quirky' areas, which may not come up at all for many girls, it's a great program. And as Verde-Blu points out, with each new year TurboTax fixes more 'quirks' and adds more helpful features.

But, in fairness, 'first time' dancers and camgirls who do not have a basic understanding of 'business' book-keeping, or the concepts of quarterly estimated tax payments, may benefit greatly by using a CPA for their first year's 'business' tax return. Along those lines, the 'big box' tax preparers like Jackson Hewitt and H&R Block typically have near zero experience with 'business' taxes versus 'employee' taxes ... thus may not do a very good job for a first year dancer or camgirl.

BabyBat
09-23-2014, 07:25 AM
Making over $20,000 beats the full time job I'm at. I work 9 hours a day, bust my ass, and get treated like shit. Think of it more as being your own boss and you'll start to like it more ;)

MikaelaEres
09-28-2014, 08:00 AM
Hey, I'm planning on starting camming sometime soon but the thing holding me back right now is taxes. I'm living in Europe in a country where most types of small businesses have to pay VAT (value-added tax), so I'm wondering what to label my taxes as without it being obvious I'm in the adult industry. Financial services and performing artists are part of the category that don't have to pay VAT, so do you guys have any suggestions on what should my 'profession' be? Obviously I'm not trying to avoid taxes, since camgirls are part of the performing artists category, but I'm not too keen on having to pay a big extra percentage of my camming income to a tax that I shouldn't have if I pose as a contractor who has a VAT taxable business. Any ideas?

Melonie
09-28-2014, 03:21 PM
^^^ not much of an option but to be 'honest' about the nature of your business activities ... while avoiding being forced to 'eat' VAT taxes. There are lots of possible interpretations within the 'performing artist' category which don't involve 'adult' oriented performances. And, for the moment at least, unlike the USA there aren't any existing 'international' financial reporting mechanisms in place which would create an indepenent 'paper trail' to 'adult' oriented business activities. Whether or not 'same country' financial reporting mechanisms exist, though, varies widely from country to country.

LaylaLovely
09-28-2014, 05:58 PM
Okay so I will have a business license for my at home business could I put my cramming under this???? I've never ever done taxes before so this is like a foreign language to me, I've decided to get an adult industry tax man from la to make I do everything right.

Melonie
09-29-2014, 03:10 AM
^^^ that's probably an excellent idea, given that this is a 'new' business venture ... and also given that you have both ( high ) state taxes as well as federal taxes to deal with.

Bootsie
09-29-2014, 04:33 PM
Does anyone have a recommendation for an adult-friendly accountant in the UK? My taxes are a hell of a complex mess, and me and the lovely people on the HMRC help lines have determined that paying for an accountant to set things up properly would be worth my while. Feel free to PM me :)

Found lots here: https://www.stripperweb.com/forum/showthread.php?193631-finding-a-sex-worker-friendly-accountant&p=2677554#post2677554

fyguh
10-22-2014, 11:35 PM
health care, retirement, unemployment insurance, worker's comp insurance etc. If you scrutinize the 'equivalent cash value' of receiving such benefits, it undoubtedly adds up to at least $5 per hour. So from that standpoint, the decision to work as a 'marginal' full time camgirl earning $1000 for 40 hours worth of effort, versus accepting a straight job at $12 an hour that includes employee benefits, is pretty much a toss-up. Of course, finding an hour job with employee benefits these days isn't as easy as it once was either !

Melonie
10-23-2014, 03:28 AM
^^^ that's increasingly true !!! And besides the positive 'equivalent cash value' of employee benefits ( if you can find such jobs, obviously), there are other 'equivalent cash values' to be considered - both positive and negative ...

- self-employed US dancers and camgirls are subject to an additional 7.65% social security tax on every dollar of their earnings, whereas employees have this tax paid for by their employer.

- dancers and camgirls subject themselves to the possibility that their 'adult' industry work history may negatively affect future straight job opportunities / straight job earnings potential after they retire from dancing and camming

- the higher 'raw dollar' incomes of US dancers and camgirls may also render them ineligible for 'means tested' ( = income based ) subsidies and gov't benefits, resulting in higher health insurance premium costs to name just one example.

lovetapp
11-01-2014, 01:28 PM
lucky you...

JessaBelle
11-21-2014, 02:43 PM
Hi there,

I'm kind of a new cam girl, well kind of starting over again after a very long hiatus, and am wanting to cam full time.

In my job that I've had for the last 7 years, I have been cash only, and don't really understand 1099's, so I am hoping someone can help me understand this.

I have been reading threads about setting goals for yourself, or understanding what goals you need to meet daily in order to make your bills every month.

So, I got a little curious to see exactly what I needed to make.

Please bear with me as math is NOT my strong suit.

I was hoping someone could help me and see if my calculations and understanding are correct.

----

• My daily goal needed to make my bills is $120 a day or $3600 a month (my cut).
• I work on streamate, so they take 65% off the original total, leaving me 35%.
• I also am signed up with a daily pay site, and they take 5% off the original total, leaving me 30%.
• Plus, I want to save money from my daily pay for the IRS, which would make it 10% each day, taken off the original total too.

My understanding is that I would need to figure out what the original streamate amount is per day to figure out exactly what I need per month to pay my bills, so I started guesstimating with a spreadsheet to see.

• It looks like my original total needed would be $600 per day.
• Then I would deduct streamate's cut of 65% off the original total.
• Then I would deduct my daily pay site's cut of 5% off the original total.
• Then I would deduct the IRS's cut of 10% off the original total.

$600 x 65% = $390 (what streamate makes) - I make $210
$600 x 5% = $30 (what my daily pay site makes ) - I make $180
$600 x 10% = $60 (what the IRS makes) - at the end of the day I make $120

Does that look right to you?

If that is the case, am I also understanding that in essence that is $18K per month ($600 per day x 6 days per week = $3600 per week) or $216K per year (the IRS 1099 will say $216K per year, so my income for the year will be based off that and not close to $48k which is what I will actually be making)?

My brain is so frazzled thinking of how this all works, but that sure seems like a lot for a new cam girl to make in a year after all fees, just to make ends meet.

I am probably so wrong.. like I said, math is not my strong suit. Thanks for reading and I hope someone can help.

KatyBoleyn
11-21-2014, 03:20 PM
Percentages when it comes to sites are pretty irrelevant in the long run. A lot of people ooh and ahhh over higher or low percents, but at the end of the day it comes down to how much money you make vs. how much you actually worked. If a site takes 70% but your total earnings are $40-50/hour when you're online and you don't spend prep time, its good compared to a site that gives you 90% but you have to spend hours getting your own traffic off-line and risk a CB every time you sneeze, as well as lowering your total rate to compete with the .99/minute girls.

The best way to figure it all out is to work on a site, then go [total money that hit your bank account] / ([hours spent preparing/marketing] + [hours spent logged in and working]). This will give you an earning average for that activity, then you can adjust your time spent on various ones to maximize your income. Everyone will have different results from this, so you need to try different things (I'd say putting at least 20 hours into each site you want to try) to get a feel for your averages. This will also let you set your schedule so you hit your goals.

As for taxable earnings, the IRS only cares about the money that hits your bank account (or your hands). They could care less about anything higher up the food chain when it comes to you. In your example, your take-home is $180, so saving 10% is $18, not $60. Your taxes also heavily depend on your amount of kids and your partner's income, so its very hard to say if you would owe taxes at all in that income bracket.

JessaBelle
11-21-2014, 03:27 PM
Ah ok. That makes sense. I was way overthinking everything. I was really freaking out about the 1099 that would come at the end of 2015 saying $216K lol I'd be much happier to be able to report the $48K or whatever it will be. Thanks so much, Kate. You have been a tremendous help to me. I was thinking 10% of the $600 (original amount) for the IRS. Thanks again. :)

Melonie
11-22-2014, 05:52 AM
^^^ your math is correct, but your assumption about the IRS percentage is wrong. Every 'self-employed' US camgirl must pay 15.3% Social Security tax on every dollar of camming income earned. Beyond that, US camgirls must pay an additional amount of federal taxes on income, plus state taxes on income ( unless they live in one of the handful of states that doesn't levee its own income tax ). The income tax rates are progressive versus rising income. Based on your goal of ~$120 per day in 'after tax' annual income, it's probable that federal and state income taxes would be somewhere in the 10% ballpark as you already estimated ( maybe more in high tax rate states like CA, NY, NJ, IL etc. ).

So back to the need for $120 per day of 'after tax' income. This translates into $120 * ( 100 + 15.3 + 10 ) / 100 = $150 per day in 'pre tax' income. So to get paid $150 per day by DailyPay, you need $150 *100/95= $158 to be paid out by StreaMates. To have $158 paid out, you need to earn $158 * 100/35 = $ 429 per day on StreaMates.

In terms of 1099 and income tax reporting, SM will send a 1099 to the IRS showing $158 * 5 days * 52 weeks = $41,080 of total annual income. From that you can deduct the 5% = $ 2,054 in 'professional services' paid to DailyPay. You can also probably deduct another couple of thousand dollars worth of other business expenses, from the cost of a camera to 50% of your home internet service to tax prep fees to cam costumes, leaving you with somewhere around $37,000 in 'business income', minus a $3950 personal exemption, thus $33,000 in 'taxable income'.

Thus somewhere around $33,000 * 25% = $ 8,250 in taxes will need to be paid toward social security and income taxes - which corresponds to ~$ 32 per day. And if you don't have qualified health insurance coverage, you'll also owe an additional $33000 * 2% = $660 per year = $2 per day in new ACA 'penalty' tax ( 1% for 2014, 2% for 2015, 2.5% for 2016 on ). Since we had originally allowed only $30 per day for all taxes, you'll need to earn a bit more than $429 per day on SM ( like ~$445 ) to wind up being able to actually 'keep' the $120 per day you are shooting for.

chickchick8182
11-22-2014, 06:44 AM
Melonie...I officially love your brain. BEYOND helpful post. I was worried about taxes, I currently PSO and am starting camming soon, your post answered a great deal of my questions. Thank you :)

Melonie
11-22-2014, 07:21 AM
^^^ thanks ... but undeserved. Most of my knowledge came from listening to inebriated Manhattan bankers, brokers, attorneys, accountants, corp execs etc. talk among themselves in the VIP room ... while assuming that the 'full chested' blonde on their lap was also 'empty headed' !!!

chickchick8182
11-22-2014, 07:32 AM
Awww don't you love that? ;) Most men ( some I should say), assume we're all sex workers because we're an empty headed set of breasts that aren't smart enough for anything else. Lol to that, meanwhile we'll keep taking their money, AND the nice little tid bits of knowledge along the way.

JessaBelle
11-22-2014, 03:30 PM
Melonie, OMG thank you so much for doing all that for me. You totally helped me with understanding what goal I need for each day. You are a lifesaver.