View Full Version : Camming And Taxes
minniesoporno
11-04-2017, 01:56 PM
@minnie You may want to look into contacting a financial planner (maybe accountants do that too idk) but someone that helps you figure out how all those bits & pieces work together and set up your future.
I am good with my financial planner she has a huge network for people. That why I know I have to think of taxes as part of financial planning.
EvieG2017
11-12-2017, 09:20 AM
I do this and here in the U.K personal allowance before tax is £11,500, so even if I earn that, I still get 100% of that as my take-home pay.
I personally think that's not bad, sometimes it does work out better just to work for yourself...
anonamiss
01-16-2018, 08:22 PM
hi ladies. long time lurker here. first post. :)
i'm currently on streamate and have been for several years. i work independently, not for a studio. i'm very interested in taking advantage of the new 20% tax break for pass-through businesses, and am hoping to get some more insight from any knowledegable camgirls. my basic understanding is that we could be eligible to exclude 20% our total incomes for the 2018 tax year (that is, for taxes that would be due in 2019), provided certain requirements/limitations are met. is it as simple/straightforward as it seems? or are there any potential setbacks/complications i should be aware of? SM is about 95% of my income (clip sales/C4S takes up the rest), and i'm well below the individual taxable income limit of $157k.
here is an article that goes into detail about it. (open it in an incognito window if it says you need a subscription.) http://www.investmentnews.com/article/20180112/FREE/180119973/tax-law-everything-advisers-need-to-know-about-the-pass-through
i am currently not incorporated yet, but i plan to do that soon. i'm not sure if i'll do so as a sole proprietor or S-Corp or LLC. i need to do more research. could any tax savvy ladies here advise as to what is better/more advantageous/etc.?
another question I have is, would camming be considered a "service business"? i would think yes, since service businesses are defined on the article above as "those in which the primary asset is the reputation or expertise of its employees or owners."
my final question is in regards to streamate. if I were to incorporate and therefore get an EIN, does anyone know if I am allowed to keep my current account but simply get my tax ID information changed? or would I need to contact SM and go through the process of starting a new account with my new tax ID number (in which case, i'm also curious what stats from my current model account are transferable to a new one, such as favorites, tags, comments, ranking/placement stats, etc.)? has anyone had experience with changing tax ID info on their camsite?
thanks in advance!!!!! <3
KatyBoleyn
01-18-2018, 12:11 AM
We still don't know the final rules on this, but I did run some numbers from what I know working with my CPA.
A single person making $50,000 camming with no husband or kids would save about $1000 in taxes by incorporating. Depending on your state, it may cost you most of that in registration and legal fees. Some states its fast and easy.
Interestingly, being married and adding 2 kids to the mix doesn't change the difference in outcome - you'll get more money back in both cases, but its still about $1000 more to be incorporated.
If you go lower than 50,000, it eventually flips. As a single person making $30,000/year, having a company suddenly becomes a burden, costing you $600 a year more than if you had filed individually.
My recommendation so far is that if you and your spouse combined make less than $75,000 in "self-employment" income, its still simply not worth the hassle to turn yourself into a company - especially if you're already taking advantage of IRA contributions, child tax credits, and deductions for state/local taxes.
KatyBoleyn
01-18-2018, 01:51 AM
first of all, thank you katy! :D very helpful/interesting info.
i've averaged just about $60k gross (plus or minus a thousand dollars or so) from camming/clips the last two years. my goal is to increase that to $65-75k this year (75 is in the optimistic range, but 65 seems very doable... I take too much random time off and just need to work more, lol.)
i guess i still don't understand how i'd only save such a low amount in that instance... the 20% tax break with the pass through situation seems like a HUGE potential savings opportunity, from the math i calculated. what factors am i missing? i live in CA, i'm single/not married/no children or dependents. i always take the standard deduction, and plan to take it again next year since it will be higher and i don't have much to itemize. i will also note - i pay about $400/month in out of pocket health insurance... with that in mind, a friend of mine suggested that if i were to incorporate, i might be able to include my insurance as a business expense/deduction for the company? (or something to that degree; i'm not sure if i'm using the correct vocabulary here. does that sound feasible or totally wrong? definitely not trying to anything shady. just trying to find ways to potentially save me some money. i'd be ecstatic if i could find a way to pay less than 30% of my income which has been almost exactly what i've owed the last few years.)
I have no idea how you're paying 30%...worst case scenario if you take absolutely NO deductions or anything, filing as a single with no kids, you never should have paid more than ~25% in the past years with $60k - about $15000 in taxes.
Reducing that to $48k, you would owe $11,500.
However, taking common deductions from that original 60k would already have reduced your tax bracket, so knocking down 20% may not be as helpful...meaning your savings will likely be closer to the $1500 mark. At that point, it still may be useful to do the LLC thing. It isn't just about the money, there is a time and investment factor in setting up the LLC. Note that most of the people pushing you to set one up are getting paid by the hour to help you do that.
I don't think you need an LLC to deduct your health insurance, I'm pretty sure just being 100% self-employed allows you to do that. https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-self-employed/L6bRhLaVE
anonamiss
01-18-2018, 03:07 PM
I have no idea how you're paying 30%...worst case scenario if you take absolutely NO deductions or anything, filing as a single with no kids, you never should have paid more than ~25% in the past years with $60k - about $15000 in taxes.
Reducing that to $48k, you would owe $11,500.
However, taking common deductions from that original 60k would already have reduced your tax bracket, so knocking down 20% may not be as helpful...meaning your savings will likely be closer to the $1500 mark. At that point, it still may be useful to do the LLC thing. It isn't just about the money, there is a time and investment factor in setting up the LLC. Note that most of the people pushing you to set one up are getting paid by the hour to help you do that.
I don't think you need an LLC to deduct your health insurance, I'm pretty sure just being 100% self-employed allows you to do that. https://turbotax.intuit.com/tax-tips/home-ownership/deducting-health-insurance-premiums-if-youre-self-employed/L6bRhLaVE
sorry, I meant 30% total including state taxes, which is another couple thousand dollars. hopefully that makes more sense. i aim to set aside 30% of each paycheck as a flat percentage to cover all my taxes which seems to be sufficient (and also what a lot of people seem to recommend on this thread; i read pretty far back.)
i didn't know that about health insurance, thank you for that link. i didn't have health insurance for most of 2016 and got a ~$1k penalty for it last year, so that's good to know i should be able to deduct it this year.
i'm realizing i was a bit naive to jump to the conclusion that incorporating would be relatively simple and without-a-doubt worthwhile. i see now that might not be the case. i need to research and do some calculations to determine the cost differences/potential savings. i knew about the ~$800 franchise tax in CA but i wasn't taking into consideration potential legal and accounting fees or other related costs.
anyway i'll post back here if i have future questions after i read into it some more... thanks again xx
SapphireXO
01-25-2018, 03:39 PM
Hello all. I am setting aside my worst case scenario for taxes (12% federal tax rate up to about $38,000 then after $38,000 the federal tax rate goes up to 25%) + my state tax rate of 4.25% + self employment taxes of 15.3% = 31.55%. I put taxes in a separate self employment savings account ONLY for taxes. Obviously the amount I owe more than likely will be less than 31.55% due to the $10k personal deduction now plus all health insurance premiums are also 100% deductible thus reducing your overall taxable income amount. My best advice is to save as much as you can for taxes then pay yourself a bonus after tax season with anything extra you saved is no longer need :)
anonamiss
01-31-2018, 05:59 PM
bump. back with another question. :)
in my last post i was asking about the potential upsides & consequences of "incorporating," but what i've realized is that i wasn't differentiating between becoming an LLC or S-Corp (both of which seem expensive and unnecessary for most of us, as katy pointed out), from simply becoming a "sole proprietor."
my understanding is that as independent contractors, we technically already are "sole proprietors" ... but in order for us to benefit from the 20% pass through we would need to officially establish as such, and thus get an EIN. is that right?
all of the articles i've read about the new tax code make it pretty clear that sole proprietors could benefit from it, so i'm really interested in how to actually make that happen. it seems i (we) could save at least a couple thousand a year from doing so - which i realize isn't *that* much, but if it's not a huge hassle, it would be a nice little chunk of additional savings instead of giving it to the IRS.
i also wanted to reiterate one of my first questions here, which has to do with changing my tax info on streamate. if i were to get an EIN does anyone know what that means for my current SM account? i know i'm not able to change my tax info directly on the site, but do you think if i contacted liz or someone in the accounting department, they would allow me to keep my current account and just change my tax info from my SSN to a new EIN? or would i have to start completely over?
KatyBoleyn
01-31-2018, 07:12 PM
When we switched our corporate type to a different one, they did need to entirely change our account to a new one. Any earnings on the previous account went to the previous business for that year. This meant we had to issue 2 different 1099's to our models also for that year, one from each company.
Yes, you will likely have your account reset, but you would be able to port over your name and favorites. You would just lose your ratings, records you kept on clients, comments, and your financial history on the old account.
As for the sole proprietor thing, you are one by virtue of filing a Schedule C for self-employment. I have no idea if you also need to get an EIN to go with that. You can anyways in about 3-5 minutes, its not a big deal.
lLilly May
02-17-2018, 04:23 PM
sorry if this has already been asked,this will be the first time i have to do taxes,anyone use turbo tax? like...i don't even know where to begin but i wont bother y'all with that!!
Violethollywood
02-17-2018, 04:30 PM
i always use turbo tax. Depending on your tax situation, you can file for free. Me, i still have to pay to file bc Im self employed entirely and i always buy audit defense just in case. still cheaper than using some place like jackson hewitt. An old neighbor of mine, she had a couple of kids and she actually worked 2 jobs as cashiers at different locations, so 2 different w2's which is fine, that's easy to file, but jackson hewitt fucked her over hard-- they ended up charging her like 400 -500 just to file! Be careful if you go thru a company, they like to fuck over women especially when it comes to taxes. It's just like going to get your oil changed SMH gotta watch out lol
SuperPookie
03-26-2018, 11:56 AM
I did TurboTax and owe a small fortune :(. Daughter used it for her vanilla business and they said she owed 3500, HR Block 3300, Accountant 1300
Girly_Girl
04-05-2018, 02:30 PM
I usually go to H & R block to have my taxes done but I can't afford to this year cause they charged me $350 last year. So I found a place thats going to file my taxes for free. I have my 1099 from daily pay but I also have my income that I made from phrendly and Niteflirt that was not included in with my 1099 from daily pay. When I give them the income from phrendly and Niteflirt (or any of it as far as that goes) what can I tell them that I do for work ? I do not want to tell them that it was for Niteflirt, phrendly, or adult services? So what do I tell them when they ask what I do?
SapphireXO
04-05-2018, 03:08 PM
I usually go to H & R block to have my taxes done but I can't afford to this year cause they charged me $350 last year. So I found a place thats going to file my taxes for free. I have my 1099 from daily pay but I also have my income that I made from phrendly and Niteflirt that was not included in with my 1099 from daily pay. When I give them the income from phrendly and Niteflirt (or any of it as far as that goes) what can I tell them that I do for work ? I do not want to tell them that it was for Niteflirt, phrendly, or adult services? So what do I tell them when they ask what I do?
I specifically contacted several accountants in my area and I asked them for help. I was up front as a new client and mentioned I provide adult online services to request no biases. No issues and I received great, prompt service. However I am curious how many performers are not paying quarterly taxes?!?! Even without a "business", being self employed you still have to pay quarterly taxes to avoid penalties at the end of the year. I have to pay my first one for 2018 in less than 2 weeks. Either way I save the most I possibly would have to pay which is 31.55% state tax + federal tax + self employment taxes.) However I do pay for my health insurance out of that pool as it is 100% tax deductible.
Regardless of what you pay an accountant and taxes, I still make way more per hour than I would at a vanilla job but I have no commute and work much less than full time. Just no 401K, paid time off, or other employer benefits :(
anonamiss
04-05-2018, 05:08 PM
I use the tax code for "internet publishing and broadcasting". There are lots of descriptors that accurately describe what we do under the list of examples (web/video broadcasting, entertainment sites, etc.) with no need to specifically mention the "adult" aspect. https://siccode.com/en/naicscodes/519130/internet-publishing-and-broadcasting-and-web-search-portals-2
kendallkushxo
04-24-2018, 09:14 AM
I owed like 2k state and federal combined but I wasn’t insured for some time so I had a hefty penalty, my refund was literally the penalty fine tho so I was very happy about that!
I thought it was worth it considering my day job pays me an extremely unliveable wage and it’s been hard for me to find something better.
I got my taxes done for 190$ Not too Shabs
CynPai
05-07-2018, 03:22 PM
I did a lot of research and went to a professional who I heard a lot of good things about. I told him what I did for work and he did not judge me and helped me so much...I'd suggest the company but it's only in Florida. (its called Taxology) If you're worried about owing a huge chunk of money, you can claim a high number of expenses and losses so that your profit margin is low. But doing that can backfire on you....if it looks like you have a poor amount of income then you can't get approved for a car loan/mortgage/or other personal loans.
When I first started camming I tried doing the taxes myself....I realized that claiming a huge loss made me not owe the IRS anything. I was proud of myself because I thought I was being smart. I have been struggling trying to get approved for a mortgage because of this. I have to wait an extra year and a half and file my taxes better so I can get approved now. So there's pros and cons....
Either way, even though the IRS can take a huge chunk of your income like (20-30%), I still think camming is defiantly worth it. If you feel that you'll lose a ton of money, then I'd suggest to put more hours in and work more. Set a higher goal weekly.
Hope this helps.
sovereignv
05-11-2018, 08:06 AM
Hey! Any German or German-resident camgirls here who can point me to advice about doing the Steuererklärung? It doesn't have to be in English, my German is OK. I don't even know which forms I'm supposed to fill in.
Girly_Girl
05-11-2018, 08:43 AM
I did a lot of research and went to a professional who I heard a lot of good things about. I told him what I did for work and he did not judge me and helped me so much...I'd suggest the company but it's only in Florida. (its called Taxology) If you're worried about owing a huge chunk of money, you can claim a high number of expenses and losses so that your profit margin is low. But doing that can backfire on you....if it looks like you have a poor amount of income then you can't get approved for a car loan/mortgage/or other personal loans.
When I first started camming I tried doing the taxes myself....I realized that claiming a huge loss made me not owe the IRS anything. I was proud of myself because I thought I was being smart. I have been struggling trying to get approved for a mortgage because of this. I have to wait an extra year and a half and file my taxes better so I can get approved now. So there's pros and cons....
Either way, even though the IRS can take a huge chunk of your income like (20-30%), I still think camming is defiantly worth it. If you feel that you'll lose a ton of money, then I'd suggest to put more hours in and work more. Set a higher goal weekly.
Hope this helps.
Wouldnt doing something like that also make it more likely to get audited tho? I've thought about doing this myself but didnt want to raise suspicions and then get audited ;(
Magical_Hoohah
05-11-2018, 05:26 PM
Wouldnt doing something like that also make it more likely to get audited tho? I've thought about doing this myself but didnt want to raise suspicions and then get audited ;(
It probably depends on how overworked they are and how suspicious your return is. But if you get caught randomly claiming expenses that aren't legitimate and documented, and you did it for multiple years, you are going to feel some pain!
I would think you could get tripped up for a bunch of small things: Your interest and tax on your home could indicate a large mortgage that shouldn't be affordable at your claimed income level. You might be paying high premiums for ACA insurance, but according to your taxes, you shouldn't be able to afford it, your kids might even qualify for Medicaid/CHIP. Your bank might report your earnings from interest, and based on your income, you shouldn't be able to put away enough savings to generate that much interest. Your charitable giving could be unreasonable for your supposed income. Your DMV record might show cars you shouldn't be able to afford. The person reviewing your return might know about camming, recognize ICF on your 1099, and be aware that cam girls really don't have many expenses we're allowed to claim. Etc.
Girly_Girl
05-15-2018, 08:39 AM
It probably depends on how overworked they are and how suspicious your return is. But if you get caught randomly claiming expenses that aren't legitimate and documented, and you did it for multiple years, you are going to feel some pain!
I would think you could get tripped up for a bunch of small things: Your interest and tax on your home could indicate a large mortgage that shouldn't be affordable at your claimed income level. You might be paying high premiums for ACA insurance, but according to your taxes, you shouldn't be able to afford it, your kids might even qualify for Medicaid/CHIP. Your bank might report your earnings from interest, and based on your income, you shouldn't be able to put away enough savings to generate that much interest. Your charitable giving could be unreasonable for your supposed income. Your DMV record might show cars you shouldn't be able to afford. The person reviewing your return might know about camming, recognize ICF on your 1099, and be aware that cam girls really don't have many expenses we're allowed to claim. Etc.
Some very good points! H & R block did my taxes for years and told me that certain things would throw up a red flag that could get u audited, but I can't remember exactly what it was ;( I've also heard of accountants that would somehow find u so much exemptions or what not to where you wouldn't have to pay much on taxes but then again, if u ever get audited and don't have the receipts, u would be screwed.
As far as mortgages, I dont have a huge one ( only $267 a month and its almost paid off) My car is also paid off but needing a new one but can't afford it right now thanks to huge credit card debt!! Kids are grown and not a lot of money in savings either.
I am pretty much screwed anyways tho cause I owe them $12,000 over a period of 3 years because I am not making enough with camming to set back the amount that I should be putting back!!! ;( So I've got to figure out something, either raise my rates or something.....
SapphireXO
05-15-2018, 09:16 AM
I specifically contacted several accountants in my area and I asked them for help. I was up front as a new client and mentioned I provide adult online services to request no biases. No issues and I received great, prompt service. However I am curious how many performers are not paying quarterly taxes?!?! Even without a "business", being self employed you still have to pay quarterly taxes to avoid penalties at the end of the year. I have to pay my first one for 2018 in less than 2 weeks. Either way I save the most I possibly would have to pay which is 31.55% state tax + federal tax + self employment taxes.) However I do pay for my health insurance out of that pool as it is 100% tax deductible.
Regardless of what you pay an accountant and taxes, I still make way more per hour than I would at a vanilla job but I have no commute and work much less than full time. Just no 401K, paid time off, or other employer benefits :(
I thought I'd update. My tax professional and I estimate that I have to pay 26% taxes between State and Federal after my deductions and health insurance. I pay my taxes quarterly. I still make more money camming than any other reasonable career opportunity only working part time and when I want. However I advise you save your maximum amount that you can possibly owe which in my case is 31.55%..
ChelseaB
05-30-2018, 10:49 AM
Hello :) I'm interested in starting paid cam shows but I've seen some people here making some fairly significant money from it so I was curious - is the money you make taxable? Do you have to do a tax return on it? I've looked at sites like which calculate tax on income, but I don't do enough work for it to be taxable (personal allowance) but I am very close so anything I make from this would be taxable. How many of you actually pay tax on this kind of income? I'm curious, just want to know all the ins and outs if I do ever start :P
KatyBoleyn
09-14-2018, 11:42 PM
Question for those of you who are in Canada and earning more than 35,000/year. CRA states you have to charge clients GST/HST. How can you possibly do that on Streamate?
You're a contractor with a single US client, Streamate, so I'm not sure how you can apply any kind of sales tax to a foreign client.
SuperPookie
09-26-2018, 11:18 AM
I'm going to use Wave to track my income & expenses but I'm unsure if where I'm supposed to put my business name I use my stage name or my real name as I'm an independent contactor?
Has anyone used Wave?
They do seem to have very good reviews especially considering it's free.
queenelayliah
09-28-2018, 08:42 AM
Hii!!
So i have a quick question. On Niteflirt, I oay for bidding and i wanted to know does that count as advertising therefore is it a deductible expense ?
SuperPookie
09-28-2018, 09:29 AM
Hii!!
So i have a quick question. On Niteflirt, I oay for bidding and i wanted to know does that count as advertising therefore is it a deductible expense ?
Oh, I've wanted to know this to so thanks for asking.
If so how do you total it up? Does NF keep track of it somehow to give you a yearly/monthly total?
anouk.oui
10-01-2018, 11:24 PM
Anyone cams outside us/Canada?
I live in Australia and most camsites are US based so not sure how to go about taxes
SapphireXO
10-09-2018, 06:15 AM
Oh, I've wanted to know this to so thanks for asking.
If so how do you total it up? Does NF keep track of it somehow to give you a yearly/monthly total?
Hello NF does give you their fee structure which is fantastic for deductions. I'd advise doing it monthly. Download their payment file 1. Log in 2. Go to transaction details under snapshot in the top right corner 3. Export to CSV 4. You can see the differences in debits and credits. However remember the sites fee structure is not listed. **Do the math and make sure you also deduct the difference between bidding fees + the site fees against what you made vs what you got paid.
minniesoporno
10-09-2018, 08:25 AM
Anyone cams outside us/Canada?
I live in Australia and most camsites are US based so not sure how to go about taxes
Simple you need an accountant to help you organize the tax laws in your country for being self employed and earning commissions. Once you have an accountant that is happy to read and explain the tax laws in your country all you need to do is bring them your income and expenses and also figure out the benefits of being self employed or organizing your income under a business where you can take advantage of any benefits you get for being a business owner in your country.
Chica
11-12-2018, 09:56 AM
Hi Ladies! Can someone recommend a good accountant in Florida? Thanks!!
PennyJ
11-12-2018, 01:09 PM
How much is anyone in the UK paying for an accountant? Mine is around £300, wondering if that's expensive or not, and if there's any other option for me to do that won't result in a higher chance of being audited etc
minniesoporno
11-28-2018, 11:40 AM
How much is anyone in the UK paying for an accountant? Mine is around £300, wondering if that's expensive or not, and if there's any other option for me to do that won't result in a higher chance of being audited etc
$300 is about the same price here in Canada for an accountant even HR block wants to charge that much to do a file. but you can claim the cost of hiring people as a business expenses.
SapphireXO
12-19-2018, 07:34 AM
I'm reposting this here since it's about the end of the year...
OMFG. Please. You absolutely do not ever cheat the IRS. Report your income. An LLC won't cover your ass (get an S-CORP anyways...) You are always responsible for your personal tax liabilities even if your LLC going bankrupt. This thread makes me cringe.
For US models:
1) look up your state's individual income state tax requirements. Write offs rarely change your state tax liabilities.
2) google federal IRS income tax brackets and save that % (15-30% generally.) ALWAYS save on the high end in a separate account and pay quarterly or yearly.
3) add your state income tax requirement + your federal tax requirement = total amount you need to save for estimated taxes % wise
4) I end up around 22-31% after write offs and self employment taxes personally but you NEVER want to be behind on taxes or have your EIN/SSN be alerted for misreporting/under reporting income.
5) If you over pay/over save - give yourself a BIG $$$ yearly bonus check. Never a negative thing.
There are fees and penalties assessed if you owe but can't pay. Bad situation to be in. Payment plans are never fun either.
Chica
01-26-2019, 05:02 PM
Ladies, do normally companies like SM, Niteflirt, Phrendly etc send 1099? Thank you!
grneyesnfl
01-27-2019, 12:27 AM
Ladies, do normally companies like SM, Niteflirt, Phrendly etc send 1099? Thank you!
I use Niteflirt. They send out a 1099-K but ONLY if you’ve made at least $20,000. Regardless if you get one or not, you STILL have to include those earnings on your taxes just like any other money you earn.
Chica
01-28-2019, 09:45 AM
Thank you so much!
anonamiss
01-30-2019, 01:22 AM
Ladies, do normally companies like SM, Niteflirt, Phrendly etc send 1099? Thank you!
The companies I've worked for (SM, Clips4Sale, DreamLover) all send out 1099 MISCs if you make $600 or more.
I got my SM 1099 in the mail a few days ago. Clips4Sale sent theirs via email.
SapphireXO
02-04-2019, 02:13 PM
So I had my first tax conference for 2018. Just to fill you in, my CPA said:
Regarding writing off %'s from sites like MFC/SP/CMD for their portion as transactional fees/processing fees etc - if they give you a 1099 with JUST your earnings after their cut you CANNOT write off your percentage for their processing/transaction fees. If your 1099 has what you actually got paid + their transaction/processing fee on the 1099, you can write off their fees.
Hope that helps.
MissMoore
02-24-2019, 03:02 PM
Hey ladies! Can anyone recommend an adult entertainment friendly cpa? I’m in the DMV area.
GirlWithAPlan
03-09-2019, 12:13 AM
I thought I'd update. My tax professional and I estimate that I have to pay 26% taxes between State and Federal after my deductions and health insurance. I pay my taxes quarterly. I still make more money camming than any other reasonable career opportunity only working part time and when I want. However I advise you save your maximum amount that you can possibly owe which in my case is 31.55%..
One thing I learned from being a PSO is that paying quarterly is EASY and no, you don't want to have to pay back taxes. I got audited one year and owed about a grand. They make you pay a couple hundred just to get INTO the repayment plan. It's taken me forever to pay them off. I don't think the IRS cared, but now, when I do any contract work, I send the IRS about 20% of my earnings. I have a day job and I claim low dependents to help offset the rest. I don't mind not getting a refund, but forget owing ever again.
GirlWithAPlan
03-09-2019, 12:15 AM
I'm sorry but most CPA's don't care where you work as long as what they are doing is legal. Their job is to help you with taxes. I've yet to meet a CPA who judged me. Used to, I filed my own taxes, but after a while of being a PSO I just went back to a CPA. I said, yeah, that's a phone sex company. The two I used thought it was fascinating.
I'd just call and ask. But most don't care at all.
GirlWithAPlan
03-14-2019, 04:05 AM
Keeping all my receipts. Can I use receipts for my equipment, nails, lingerie, sex toys, sheets, lighting, etc as part of my deductions? I am having a CPA do it next year, but just wondering because I keep paying for my cam stuff with a separate receipt so it's just cam stuff. Also, what about tanning or teeth whitening...anything like that??
SuperPookie
03-14-2019, 12:22 PM
After adding in the CPA fees I'm paying about 7k this year and that's after deducting everything down to paperclips. I'm just in shock.
anonamiss
03-14-2019, 12:36 PM
Keeping all my receipts. Can I use receipts for my equipment, nails, lingerie, sex toys, sheets, lighting, etc as part of my deductions? I am having a CPA do it next year, but just wondering because I keep paying for my cam stuff with a separate receipt so it's just cam stuff. Also, what about tanning or teeth whitening...anything like that??
KatyBoleyn often has great tax-related advice throughout this thread and forum in general. I believe it was her who explained the "housewife test" regarding cam tax write-offs, so I googled it, and came up with this blog/article from her site: https://boleynmodels.com/blog/cammodel-tax-guide2015/
According to this, you generally can't write off sex toys, lingerie, lube, etc. (though many girls still do anyway... doesn't mean it's the right thing to do. My general thought is it's way better to play it safe and be conservative with your deductions.) I would imagine teeth whitening would fall under the "not deductible" category, just like other beauty treatments. You can write off hardware/equipment like your webcam, computer, and lighting, assuming it was purchased in the appropriate calendar year.
I did notice the job category code listed on that article is not current anymore. The tax code for "internet publishing and broadcasting" (https://siccode.com/naics-code/519130/internet-publishing-broadcasting-web-search-portals) is now 519130 and that's what I've used for several years. There's no reason to specifically list that you're doing adult work, or to list yourself as an "entertainer/artist/model/etc."
SapphireXO
03-15-2019, 11:05 AM
KatyBoleyn often has great tax-related advice throughout this thread and forum in general. I believe it was her who explained the "housewife test" regarding cam tax write-offs, so I googled it, and came up with this blog/article from her site: https://boleynmodels.com/blog/cammodel-tax-guide2015/
According to this, you generally can't write off sex toys, lingerie, lube, etc. (though many girls still do anyway... doesn't mean it's the right thing to do. My general thought is it's way better to play it safe and be conservative with your deductions.) I would imagine teeth whitening would fall under the "not deductible" category, just like other beauty treatments. You can write off hardware/equipment like your webcam, computer, and lighting, assuming it was purchased in the appropriate calendar year.
I did notice the job category code listed on that article is not current anymore. The tax code for "internet publishing and broadcasting" (https://siccode.com/naics-code/519130/internet-publishing-broadcasting-web-search-portals) is now 519130 and that's what I've used for several years. There's no reason to specifically list that you're doing adult work, or to list yourself as an "entertainer/artist/model/etc."
I write off everything including my stage make up, wigs, eyelashes etc. I don't wear make up outside of camming and my vanity is in my cam room. Plus I take pictures in all my outfits. Im not wearing stripper outfits any other time then camming.
I've done my taxes that way for 2 years.
SapphireXO
03-15-2019, 11:09 AM
After adding in the CPA fees I'm paying about 7k this year and that's after deducting everything down to paperclips. I'm just in shock.
You are surprised? I did a home office deduction, healthcare, accident insurance, and everything in between. Looking at the 2018/2019 tax brackets are high. Instead of the 24% I was supposed to pay, with deductions I only paid 15% and used my self employment 401k to lower my taxable income.
Taxes are a necessary evil for social and civil services. All I know is I paid LESS being self employed then I did as a W2 employee by at least 5%.
anonamiss
03-15-2019, 05:14 PM
You are surprised? I did a home office deduction, healthcare, accident insurance, and everything in between. Looking at the 2018/2019 tax brackets are high. Instead of the 24% I was supposed to pay, with deductions I only paid 15% and used my self employment 401k to lower my taxable income.
Taxes are a necessary evil for social and civil services. All I know is I paid LESS being self employed then I did as a W2 employee by at least 5%.
Yeah, I actually got a refund because of the new 20% pass through deduction for sole proprietors this year. I made about the same as I did in 2017, paid my quarterlies according to that, and then ended up getting about $800 back. My main deduction was ~5k in health insurance premiums and about 1k in business expenses.
With state tax, federal tax, and self employment tax, I was paying around 30% of my income in 2017, but for 2018 it ended up being about 22%, so that's what I've been taking out and saving from every pay check for this year.
anonamiss
03-15-2019, 05:22 PM
I write off everything including my stage make up, wigs, eyelashes etc. I don't wear make up outside of camming and my vanity is in my cam room. Plus I take pictures in all my outfits. Im not wearing stripper outfits any other time then camming.
I've done my taxes that way for 2 years.
Everyone's taxes are going to be super personal. It really boils down to if you get audited and whether or not the IRS will side with your personal justifications for your write offs. Like I said, I prefer to keep it conservative and safe. But you do you.
Another thing for me - I don't write off anything cam related that isn't hardware/equipment/technical, but that is mainly because I live and rent alone, and potential landlords always want to see my tax returns because I'm self employed. So I don't want a bunch of makeup, sex toys, etc. listed on official paperwork. Lighting, cameras, etc. is potentially fine because I can explain that in a way that isn't suspicious. I like to keep it vague and generalized so I don't have to explain what I do and be discriminated against. And also to potentially avoid more audit risk.
SuperPookie
03-16-2019, 11:18 AM
You are surprised? I did a home office deduction, healthcare, accident insurance, and everything in between. Looking at the 2018/2019 tax brackets are high. Instead of the 24% I was supposed to pay, with deductions I only paid 15% and used my self employment 401k to lower my taxable income.
Taxes are a necessary evil for social and civil services. All I know is I paid LESS being self employed then I did as a W2 employee by at least 5%.
I am definitely paying more in taxes than I was before, though as it's been about 4-5 years since I've worked a regular job it's possible that's do to changes in tax laws. Still 7k when I made under 30k seems excessive regardless.