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sexysusie
02-15-2017, 06:55 PM
This is so basic and something i really, really ought to have all figured out by now *shame* but how do you ladies put aside for taxes? Like, do you take out a certain amount after every shift/ week/ month etc and put it into a separate account? I am always caught out by how ridiculous my bill is then have to work like mad to make enough to cover it when the bill comes out. When I have tried to be more organised i haven't saved enough cause i put aside like 20% but it came out to way more with my student loan, NI as well etc.

Bridgetxo
02-15-2017, 07:43 PM
^Whenever I get paid from a site, I automatically take 30% out and transfer it to my savings account. I got myself in trouble a few years back by not taking out the money and then I owed a ton. So now I just take it out every time I get paid.

Stacey-F
02-16-2017, 03:14 PM
So i've been camming for no longer than a month. I've made about 1,500 so far. I recently learned that if you make over 600 you need to pay payroll taxes.

I'm in college living away from home and receiving checks in the mail from MFC. I want to be very private about camming, and don't want them knowing. However, I am a dependent and my parents do my taxes.

I was thinking of discontinuing camming anyway because it makes me a bit nervous anyway, especially for future job searches. Thus, I would probably delete my account soon.

So say next january when I need to file taxes, is there a way I can just pay for these camming taxes completely independant of my other jobs/taxes/parents? If I delete my account and only made about 1k and never filed my taxes for this next year, what is the likehood something would happen? Like IRS reaching out?

And one more question: I don't want to directly deposit my cam money or relate it to my banking account because that is connected to my parent too, which is why I chose checks. However, MFC seems to really encourage depositing the check RIGHT into my account. My parents would be so confused about a sudden 1k in my savings. I've heard it's safe to take an MFC check to walmart and cash it, but I wanted to confirm with y'all and see what you thought.

Thanks guys!

KatyBoleyn
02-16-2017, 03:40 PM
The only way to do that is to file taxes without being a dependent on your parents. This could cost them $10,000's depending on the situation. Failure to make use of the 1099 they send out (either you filing or them filing) will also have some major consequences though, so weigh your options.

Its safe to cash payroll checks just about anywhere, just make sure not to sign anything or fill anything out on the check until you get there to do it. You can get a pre-paid payroll card (NetSpend or Greendot, for example) or your own bank account on the side pretty easily though, which is definitely a better option.

Stacey-F
02-16-2017, 03:51 PM
Thanks!!

Do you have any idea what the 1099 form looks like? What information needs to be filled out?

If I just sent a snapshot of the form to my parent after I filled it out and explained that it was freelance work or digital online stuff/advertising (something vague) do you think that would work? Or does the form blatantly say "MFC" or something easily trackable back?

Stacey-F
02-16-2017, 04:07 PM
Questions for all cam girls who are dependents and have their parents do their taxes:

When you get taxed or a 1099 form in the mail, how to you approach your parents about it? Is it easy to explain that this tax form is from some other type of online work or freelance? I already have a job that requires online work and social media and get tax forms through that. I'm thinking maybe I could pass off the MFC tax form as some kind of online digital work...? Or is the form blatantly like "MFC WEBCAMS"

KatyBoleyn
02-16-2017, 04:17 PM
The MFC one has an alphabet soup bunch of letters for their LLC if I remember. Its easy enough to look up if they want, but just seeing it doesn't show anything obvious.

heyho
02-22-2017, 03:09 AM
Are there any NZ cam models here who use Payoneer/FirstChoicePay? This is my first year filing income tax and I wanna know how I'm supposed to do it! Like, does FirstChoice report your income to the NZ IRD for you, or do you have to give them access to your FirstChoice account to see proof your income, or take screenshots of your transaction history? We don't get payslips so I'm not sure how to do this income tax thing. I know US camgirls get 1099's/tax forms sent to them, but I can't find any NZ-specific info and the customer service is super unhelpful about this beyond saying "we are not fluent in tax laws for all countries outside the US, taxes are your responsibility".

Thanks!

KatyBoleyn
02-22-2017, 11:41 PM
No, its still income...its just counted for next year. Those services do report to the IRS.

Nothing you receive from a client is legally counted as a "gift". The IRS does not care if its your birthday, or even if you did nothing specific for it. There are 2 or 3 landmark cases on the subject (https://julianblocktaxexpert.com/articles/man-woman-money-taxes/) that I've posted further back in the thread. Another is the IRS whitepaper regarding gift cards, which are fully taxable income if received from clients or employers.

There's nothing wrong with getting clients to pay this year's tax bill, but the money they give does count as income for next year's taxes.

anonymous camgirl
03-06-2017, 07:54 AM
So what kind of software do you guys use for expenses? I am looking to update and simplify my life some.. I am just doing it old school and it's a pain at tax time.. going through every receipt and credit card statement and bank statement... HELP!

KatyBoleyn
03-06-2017, 10:41 AM
Since my first year camming I used a separate checking account strictly for business expenses. Some banks allow you to easily open up a second account with its own card. At the end of the year, I'd print out the statement and then note each transaction with the category from what I could remember. To pay for anything, you'd just do an internal transfer of the funds you need between your personal and the separate checking account. For the most part, it does not need to be a "business account" in any way.

The caveat is that you still need to know exactly what is and isn't a deductible business expense...just because you say its so (and you used it in your business) doesn't make it a valid deduction.

Things to charge to the new account:
Anything computer software or hardware related, or any web services or hosting fees.
Any completely separate phone or internet lines used only for business.
Any purchases from theatrical or costume shops for outfits and makeup.
Partial deduction for any expenses incurred while traveling exclusively for work - hotels, gas, and meals (for conventions, photo shoots, etc)
Any payments to other people for services for your job (web designers, photographers, etc)
Your tax preparation fees/expenses
Materials and shipping costs for anything physical you mail out (but in turn you need to count any shipping they pay as income).
"Client activated" sex toys and extensions
Rent and utilities or fees for any facility you cam/work from separate than your home (Home-Office is calculated separately)

Things not deductible:
Makeup purchased over-the-counter, beauty treatments, hair/nail styling, most lingerie, most sex toys, toiletries/lube, utilities and rent for your home (this is partially calculated later).

Non-US models generally have a few more options without the American "housewife test" for what they can deduct.

cat1989
03-14-2017, 05:51 AM
Silly question maybe, but how does it work with paying. I get the money from the website, copy all the checks, and then once the tax year has ended i go to a professional accountant with all my stuff, they work it all out and afterwards I'll get a letter with how much taxes I have to pay, yes?

space_cowgirl
03-14-2017, 09:38 AM
It isn't necessary to go to an accountant, especially if you've done taxes as a self-employed person before. Tax Hawk and Turbo Tax both have business software options. Yes, if you owe money once you file, the software will let you know, and the IRS will contact you. Ideally though, you will pay quarterly estimated payments.

cat1989
03-14-2017, 10:54 PM
It isn't necessary to go to an accountant, especially if you've done taxes as a self-employed person before. Tax Hawk and Turbo Tax both have business software options. Yes, if you owe money once you file, the software will let you know, and the IRS will contact you. Ideally though, you will pay quarterly estimated payments.

I'm not from the US, but thanks anyway! :)

cupcakex13
03-23-2017, 09:28 PM
i work to offset ..part time helps.
i always think about the tax. and put 30$ every 100$ i make. so in order to really make 1000 a week, you'd have to make 1450.

to me.. it is worth it because the most i could make a week with a vanilla job ends up being a little less than 400 because of tax. plus, as a camgirl, im not actually working 40 hours per week. the freedom i get with this job is excellent.... working 2-10 every day is aweful... i hated life!! but now theres more earning potential.

you know whats been on my mind is... whenever i do graduate and end up making a bit of money... i dont know if i'll be able to handle working for someone and dealing with the work hours. i dont know if i could do a 9-5 job! but not only that, my friend has a masters degree in business and i dont think she makes 1000 a week. a lot of grad's do, but a lot dont.

xxxGothBarbie
03-28-2017, 02:17 AM
Can someone please explain to me how to file for quarterlies & how that works. Do you have to make a certain amount to file quarterly?

KatyBoleyn
03-28-2017, 11:36 AM
Can someone please explain to me how to file for quarterlies & how that works. Do you have to make a certain amount to file quarterly?

The first year you are self-employed and do your taxes, any decent software (like Turbotax) or your tax preparation people (HR Block, for example) will ask if you need vouchers for your quarterly taxes next year. They'll then do a worksheet to estimate your taxes next year and give you 4 quarterly vouchers to pay them.

The government generally gives you a free pass on your first year of self-employment. The next year, you will need to pay quarterly tax estimates or you'll have penalties. You can pre-pay all of them to get them out of the way if you wish.

Rispy_Girl
03-28-2017, 03:25 PM
The first year you are self-employed and do your taxes, any decent software (like Turbotax) or your tax preparation people (HR Block, for example) will ask if you need vouchers for your quarterly taxes next year. They'll then do a worksheet to estimate your taxes next year and give you 4 quarterly vouchers to pay them.

The government generally gives you a free pass on your first year of self-employment. The next year, you will need to pay quarterly tax estimates or you'll have penalties. You can pre-pay all of them to get them out of the way if you wish.

This only applies if you make over a certain amount the previous year though right? And if you are really balling you have to file weekly right?

KatyBoleyn
03-28-2017, 08:23 PM
This only applies if you make over a certain amount the previous year though right? And if you are really balling you have to file weekly right?

If you owed on this year's taxes and you had more than $1000 in self-employment income, you will need to file quarterly. I actually didn't when I was camming because I had child tax credits, healthcare credits, and some regular employment income in the mix, so got money back at the end of every year. Balling or not, if you had to pay a tax bill for last year, you need to file quarterly this year.

There's no "weekly filing", at least in the U.S.

xxxGothBarbie
03-28-2017, 08:51 PM
Ya I still need to file for last year's which was under 9,000 thankfully but I've already started doing pretty good on this year's income so I am just trying to figure out what to do next bc I dont have quite enough put away to pay it all upfront by the 15th plus be able to move (which is really important to me). I estimate that I'll be making around 1000 every two weeks so far this year so I'm just trying to not get hit with a huge lump sum for next year.

Rispy_Girl
03-28-2017, 11:00 PM
If you owed on this year's taxes and you had more than $1000 in self-employment income, you will need to file quarterly. I actually didn't when I was camming because I had child tax credits, healthcare credits, and some regular employment income in the mix, so got money back at the end of every year. Balling or not, if you had to pay a tax bill for last year, you need to file quarterly this year.

There's no "weekly filing", at least in the U.S.

Excellent. Due to my school stuff I got money back, so I can hold off on that for another year.

KatyBoleyn
03-29-2017, 04:21 PM
Excellent. Due to my school stuff I got money back, so I can hold off on that for another year.

Before you get too excited, take your time to run it through this: https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Rispy_Girl
03-30-2017, 02:03 PM
Before you get too excited, take your time to run it through this: https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Thanks! Luckily I'm still good. I got married, was in school all of last year, and didn't make that much camming last year because I kept taking breaks during school. I'm still good. That's a good document to have on hand as reference material though.

KatyBoleyn
04-04-2017, 10:41 AM
Its standard earnings included in your 1099. You don't need to do anything special. If you're a contractor, a payment is a payment regardless of what they want to call it.

Just like if you're a contractor, a gift is not a gift...its a standard payment.

Rispy_Girl
04-06-2017, 07:17 AM
If a person does special shows or records videos in a hotel room can it be tax deductible?

Would photography laws apply to porn producers?
https://www.google.com/amp/s/mcpactions.com/2012/02/06/special-tax-advice-how-photographers-can-get-the-right-look-from-the-i-r-s/amp/

KatyBoleyn
04-06-2017, 09:51 AM
If you rented that hotel room solely for the purposes of working there (not "incidental"), its a deduction the same as any rent for a business property.

3 situations and you can figure out which one suits the situation:

1) Your shooting called for a hotel room setting, so you booked a room and shot your video or live streamed from there. This is a 100% business expense/deduction.

2) You went on a trip to an adult convention for professional reasons, and you happened to make a video or live stream from it. This is a travel expense and a partial deduction (file it under business travel expenses and go from there).

3) You and your hubby took a vacation, and you live-streamed or shot a video in the hotel room. This is incidental and not a deduction.

-----

Someone also sent a private question about a 1099-K they received from Payoneer/Firstchoice.

1099-K is just to inform you that the IRS knows about your income. It is simply for your own records and you do nothing directly with the 1099-K insofar as filing your taxes.

What you DO need to ensure is that your tax filings include at least the amount on your 1099-K totals or the IRS will be looking for that extra income.

Example: Your 1099-K says $9000 and you have 2 1099-MISC's for $3000 and $4000. This means you need to still account for at least $2000 in income or the IRS will be sending you a bill for dodged taxes.

Example: Your 1099-K says $9000 and you have 2 1099-MISC's for $4000 and $6000. The IRS may still know about other income you have, but at least it won't be looking for the income posted on the 1099-K. This does not mean you forget about anything over $9000...you still need to account for all your income.

Rispy_Girl
04-06-2017, 10:27 AM
Excellent, thank you. I actually thought it would be fun to go to 5 star hotels just to shoot in new places.

Mistress Anika
04-09-2017, 12:29 PM
This is so basic and something i really, really ought to have all figured out by now *shame* but how do you ladies put aside for taxes? Like, do you take out a certain amount after every shift/ week/ month etc and put it into a separate account? I am always caught out by how ridiculous my bill is then have to work like mad to make enough to cover it when the bill comes out. When I have tried to be more organized i haven't saved enough cause i put aside like 20% but it came out to way more with my student loan, NI as well etc.

Last year I got serious about my finances. I opened a secondary personal bank account (both checking and savings) Updated all of my business information to move my cam/clip/ect money into said new checking account. When each payment (now once or twice a month) I move 30-35% in to savings. Leave 10% in my 'business' checking and transfer the remaining 55% into my secondary/other bank checking account. Once moved to the second bank account I pull 10% in to my 'personal' savings and try to pay all bills & extra with the remaining 45%.
Breakdown - 35% taxes, 10% business expenses (outfits, website ect), 10%Personal Savings, 45% Personal Expenses

For the "business" account, I use a bank that is hard to access & for the first 6mo, I destroyed my debit-card so I couldn't access the money without waiting for it it to transfer into my "personal" account. Cant spend what you can't access

By pulling taxes & personal savings out first (or as my dad say "pay yourself first") You're more likely save that money, than trying to save what's left over at the end of the month. Which in my case, there never was.

I also invested in Quicken, because I'm the worlds laziest budgeted. Now, I know exactly where my money is going. Quicken reminds me regularly that I've gone over my pizza budget lol.

SuperPookie
04-10-2017, 06:56 AM
I'm going to be very lucky if I can replace the amount in savings that I had to take out for taxes by next tax season :/.

xxxGothBarbie
04-10-2017, 03:27 PM
So I am filing an extension for last years taxes that I owe for camming, if I do that can I pay it off before the due date in oct by making regular monthly payments? Anyone have any experience with this yet?

mishimishi
04-10-2017, 04:31 PM
Hi everyone


im about to file my taxes tomorrow as a fulltime camgirl and I have one question (probably a stupid question but i need to make sure) and hopefully this makes sense...ill try my best.

If I worked and got paid from Dec 16-31st 2016 but didnt get my paycheck for it to deposit until January 9th 2017
Do I still include that paycheck from Dec 16-31st in how much I made for 2016? even though I deposited it and got it in my bank account Jan 9th 2017?


im not sure whether to include that in my 2016 pay or not since I got it deposited in my bank Jan 9th 2017


im so sorry if this is a dumb question...but taxes...I dont want to get in trouble lol

please let me know ide really appreciate it!

EllieGold
04-10-2017, 04:51 PM
Clips4Sale did this for me, but I'm not sure about others. They pay out from the previous month's sales but Decembers sales were paid in January if that makes any sense?

xxxGothBarbie
04-10-2017, 04:54 PM
That is counted as 2016 income. Anything you made before Jan 1st, 2017 is for last years taxes. Hope that helps. This is my first year filing as a cam girl & I'm scared as shit of taxes LoL but am gonna file really soon.

Scorpio Girl
04-10-2017, 04:59 PM
It goes by the date the check was issued, not when the work was done.

mishimishi
04-10-2017, 07:27 PM
Hi everyone


I tried looking in the "tax" section on here and couldnt find the answer I was looking for, so I thought I would make a post



Im filing my taxes tomorrow, as a fulltime camgirl. I work on Myfreecams, I wantclips, Manyvids and Mygirlfund. (Im also from Canada btw, so I dont get the tax 1099 form or whatever it is that USA camgirls get?)

Ive printed out all my deposits from all these places from my online banking, and was wondering if I need to print out all my payout history from each website I work on aswell? (For example, logging into Manyvids or MFC and printing out all my history payouts from them) or is showing my deposits into my bank from the places I work on enough?

Sorry if this is a stupid question, I want to make sure. I tried looking around on here and couldnt find the answer ><

Thanks so much!

PhatGirlDynomite!!!
04-10-2017, 07:40 PM
Hi everyone


I tried looking in the "tax" section on here and couldnt find the answer I was looking for, so I thought I would make a post



Im filing my taxes tomorrow, as a fulltime camgirl. I work on Myfreecams, I wantclips, Manyvids and Mygirlfund. (Im also from Canada btw, so I dont get the tax 1099 form or whatever it is that USA camgirls get?)

Ive printed out all my deposits from all these places from my online banking, and was wondering if I need to print out all my payout history from each website I work on aswell? (For example, logging into Manyvids or MFC and printing out all my history payouts from them) or is showing my deposits into my bank from the places I work on enough?

Sorry if this is a stupid question, I want to make sure. I tried looking around on here and couldnt find the answer ><

Thanks so much!

I used google and came up with a thread regarding Canadian Taxes.

https://www.stripperweb.com/forum/showthread.php?185891-Canadian-Camgirl-Questions

Im sure someone will come along shortly to help you out :)

Bridgetxo
04-10-2017, 11:49 PM
So I am filing an extension for last years taxes that I owe for camming, if I do that can I pay it off before the due date in oct by making regular monthly payments? Anyone have any experience with this yet?

Even though you are filing for an extension, you are still supposed to pay the full amount you owe by April 18th. You will owe interest on any amount not paid by April 18th plus you may owe penalties. If you are able to complete your return by April 18th and this is the first year you owe money, you can call the IRS and ask for an installment payment agreement. Or you can pay as much as you can by the 18th and then wait to receive a bill from the IRS for the remaining balance. It usually takes them about 30 days to send you a bill. I'm not sure if that would be enough time for you to have the rest of the money.

If you don't owe that much, the interest and penalties probably won't be too bad. No idea how much it is though.

KatyBoleyn
04-11-2017, 12:29 AM
Hi everyone


im about to file my taxes tomorrow as a fulltime camgirl and I have one question (probably a stupid question but i need to make sure) and hopefully this makes sense...ill try my best.

If I worked and got paid from Dec 16-31st 2016 but didnt get my paycheck for it to deposit until January 9th 2017
Do I still include that paycheck from Dec 16-31st in how much I made for 2016? even though I deposited it and got it in my bank account Jan 9th 2017?


im not sure whether to include that in my 2016 pay or not since I got it deposited in my bank Jan 9th 2017


im so sorry if this is a dumb question...but taxes...I dont want to get in trouble lol

please let me know ide really appreciate it!

You can do it either way. Just make sure you ALWAYS do it that way going forward. In the US, you can count receivables up to the April 14th deadline and beyond for earnings from the previous year. You can also not count them. You just need to make sure you do it the same way year after year so money doesn't fall through the cracks...an audit will get you on that.

grneyesnfl
04-11-2017, 02:05 AM
Someone also sent a private question about a 1099-K they received from Payoneer/Firstchoice.

1099-K is just to inform you that the IRS knows about your income. It is simply for your own records and you do nothing directly with the 1099-K insofar as filing your taxes.

What you DO need to ensure is that your tax filings include at least the amount on your 1099-K totals or the IRS will be looking for that extra income.

Example: Your 1099-K says $9000 and you have 2 1099-MISC's for $3000 and $4000. This means you need to still account for at least $2000 in income or the IRS will be sending you a bill for dodged taxes.

Example: Your 1099-K says $9000 and you have 2 1099-MISC's for $4000 and $6000. The IRS may still know about other income you have, but at least it won't be looking for the income posted on the 1099-K. This does not mean you forget about anything over $9000...you still need to account for all your income.

Question:

A 1099-K isn't issued unless you make at least $20,000 (and 200 transactions or more). So in the examples you gave, the person would not have received a 1099-K (because they didn't make at least $20k) and the IRS would not have been notified. Or, are you saying that any place that issues 1099-K's notifies the IRS of ANY money you make whether or not it meets the $20k threshold? Thanks.

LolaInParadise
04-11-2017, 01:45 PM
Question:

A 1099-K isn't issued unless you make at least $20,000 (and 200 transactions or more). So in the examples you gave, the person would not have received a 1099-K (because they didn't make at least $20k) and the IRS would not have been notified. Or, are you saying that any place that issues 1099-K's notifies the IRS of ANY money you make whether or not it meets the $20k threshold? Thanks.

Correct, with a 1099-K you have to meet both requirements, over 20K and over 200 loading transactions. I think the figures she was using was just to show an example of how it needs to be accounted for. Not actual numbers.

xxxGothBarbie
04-11-2017, 09:05 PM
Is there somewhere I can file for free online bc I'm not about to pay $300 at H&R block for this crap. I owe enough as it is.



Nevermind my roommate is gonna help me file it for free, she works at a tax place, thanks.

maddiebabe
04-16-2017, 04:42 PM
Does adult work send 1099s? And if they don't how do I go about reporting the income?

KatyBoleyn
04-16-2017, 07:03 PM
No they don't. On your Schedule-C or Schedule-C EZ form you have a place to put "other income". List it as a line item and list the amount you earned for the year. If you can't remember, generally you can do a search on your Payoneer/FirstChoice or bank account and add it up.

xxxGothBarbie
04-17-2017, 04:01 PM
Quick question. So can I just go ahead & file an SE instead of a C form since I have no deductions for this year or have any dependents, own a home , or have any sort of business expenses. I didn't have health insurance. I just basically probably only owe self employment tax since I made under 7,000 for last year. Mine seems very basic. I'm gonna file it on the irs website & pay what I owe.

maddiebabe
04-18-2017, 05:09 AM
Ok so as I understand I am not incorporated or LLC, so do I still have to religiously make quarterly payments or no? I still make estimated payments and all that so I won't owe the IRS, but I don't necessarily do it in a timely manner.

If i was a corporation or LLC would I then have to religiously make quarter estimated payments on time?

Excuse my ignorance!

KatyBoleyn
04-18-2017, 08:21 AM
Ok so as I understand I am not incorporated or LLC, so do I still have to religiously make quarterly payments or no? I still make estimated payments and all that so I won't owe the IRS, but I don't necessarily do it in a timely manner.

If i was a corporation or LLC would I then have to religiously make quarter estimated payments on time?

Excuse my ignorance!

If you were an LLC (and actively in business) then you would need to make quarterly payments - sometimes to your state and social security admin as well. If doing it personally, it depends...you'll need to do the worksheet/form (posted above) to see if you need to be making quarterly payments.

maddiebabe
04-18-2017, 01:36 PM
Ok I apologize if I come off really dumb, but which form would let me know if I need to be making quarterly payments as an individual rather than LLC etc?

Also my concern is that it takes me a while to actually receive payment much of the time and it is from many sources as well- so I would really be worried if I absolutely had to make quarterly payments on time.. As it is now I just do estimated payments of savings for taxes whenever I feel like it, and wondering if I will pay for this later.

mishimishi
04-18-2017, 02:52 PM
Hi everyone,

im from canada (B.C) working as a camgirl fulltime and as my only income.
My question is, when your filing taxes as self-employed as a camgirl....would I be making quarterly payments this year for my taxes for 2016 or be paying ALL my 2016 taxes in one whole payment?

im still waiting to hear back from my tax guy whos in the middle of doing my taxes (he told me to wait a week for him to get back to me and I havent been able to get ahold of him to ask this), but I thought I heard him say to me when I saw him that I would have to pay ALL my 2016 taxes by April 30th here coming up AND make quartlery payments ontop of that this year for 2016



why would I have to pay my entire 2016 taxes by april 30th here AND make quarterly payments this year?

or did I misunderstand and hear him wrong?


** I remember for when I filed my taxes for 2015 I paid entirely what was due on the tax deadline of april 30th, I paid $21000 in one payment on the april 30th the deadline and that was that and then never receieved anything throughout the year to make any quartlery payments**. (mind you I was with a different accountant then)

so im wondering why I would need to make quartlery payments this year now?

thanks!

KatyBoleyn
04-18-2017, 03:40 PM
Ok I apologize if I come off really dumb, but which form would let me know if I need to be making quarterly payments as an individual rather than LLC etc?

Also my concern is that it takes me a while to actually receive payment much of the time and it is from many sources as well- so I would really be worried if I absolutely had to make quarterly payments on time.. As it is now I just do estimated payments of savings for taxes whenever I feel like it, and wondering if I will pay for this later.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Aurora_Sunset
04-18-2017, 04:26 PM
Hi everyone,

im from canada (B.C) working as a camgirl fulltime and as my only income.
My question is, when your filing taxes as self-employed as a camgirl....would I be making quarterly payments this year for my taxes for 2016 or be paying ALL my 2016 taxes in one whole payment?

im still waiting to hear back from my tax guy whos in the middle of doing my taxes (he told me to wait a week for him to get back to me and I havent been able to get ahold of him to ask this), but I thought I heard him say to me when I saw him that I would have to pay ALL my 2016 taxes by April 30th here coming up AND make quartlery payments ontop of that this year for 2016



why would I have to pay my entire 2016 taxes by april 30th here AND make quarterly payments this year?

or did I misunderstand and hear him wrong?

thanks!

If it works the same way in Canada as in the US, he is correct. If you weren't making quarterly payments throughout 2016 on your 2016 income, you now owe ALL of that by the tax deadline this month. And now, going forward, you will have to start making quarterly payments on your 2017 (this year's) income.

April is when "1st quarter" is due for 2017 income. This first quarter payment is basically your taxes on what you made between January and now.

Quarterly payments are payments you make for the current year, as you go along - Normally, this money would be taken out of a paycheck each week/month if you were at a normal job, but since you are an independent contractor, you are not paying taxes "as you go" from each paycheck. Therefore, you have to pay a lump sum quarterly to stay on top of what would normally have been coming out of a paycheck. Technically speaking, since you were an independent contractor in 2016, you should have been making quarterly payments on your 2016 income back in 2016, but since you didn't, you now owe the entirety of 2016's payments. They generally give you a pass for the first year as an independent contractor - you have to pay all the taxes you owed from 2016, but they won't penalize you for not paying quarterly last year, but going forward, they now expect you to - hence the payment due for this year's first quarter. It just sucks that both those payments are due at the same time.

If you don't make the quarterly payments this year, next year, not only will you owe the entirely of 2017's taxes by April 2018, but you'll get fined for "underpayment" from not paying the quarterly estimates as you go along this year. Does that make sense?