View Full Version : Camming And Taxes
Melonie
06-22-2012, 02:53 AM
I wouldn't mind setting aside so much money for taxes if it weren't for the political aspects of where that money eventually goes. >.
Obviously, discussing matters such as tax policy and gov't spending policy are a whole 'nuther story ... and an unacceptable topic for discussion in the Camming forum.
Anywho... just to be safe, I'm going to start setting aside 40% of each paycheck (50% if I can afford it), to pay what I owe for the two quarters that I've missed.
Good thinking ! There's nothing worse than an exotic dancer / camgirl 'suddenly' discovering around April 15th that she needs to come up with $10-20-30,000 to cover last year's tax obligations. Well yes there is something worse ... not being able to come up with that tax money, having to accept a time payment arrangement from the IRS, and then having to pay interest charges and potential under-withholding penalty charges on top of the taxes themselves !!!
FlirtyFiona
06-30-2012, 12:21 PM
This is my first time posting. I have not started camming yet (tonight if things go as planned!) but I am curious. Sorry if this has been asked already, I have not been able to find the answer. How do taxes work when camming as a couple? I will be camming as a couple with my fiance on LJ. Since we have not started yet I am not sure how payments work. Are our earnings split equally between us or sent just to me since I set up the account? I don't know that it will matter as we are getting married in September so we will most likely be filing jointly next year and we have kids together, but I am kind of clueless when it comes to taxes!
Edit : Forgot to mention we also own a home together...not sure if that makes a difference.
Melonie
06-30-2012, 10:27 PM
Are our earnings split equally between us or sent just to me since I set up the account? I don't know that it will matter as we are getting married in September so we will most likely be filing jointly next year and we have kids together
From the point of view of the US IRS, when a webcam host issues a 1099 automatic report of cam account payments at the end of the year, those payments are considered to be the income of whatever person whose name and SS# appear on the 1099 form. So if the account is in your name, 100% of the money paid into that account will be considered to be your income and your tax responsibility. If you will actually be married to your camming 'partner' by the end of the year, then indeed that fact simplifies potential tax repurcussions between you and your camming 'partner'.
However, if you are NOT married to your camming 'partner' and must file an individual tax return, you yourself must claim 100% of the income the webcam host pays into your camming account and reports via the 1099 ... and you must pay whatever income tax rate will apply as if you indeed did earn and kept all of that money ... UNLESS you yourself generate a 1099 year end report to the IRS reporting the money you paid to your camming 'partner'. If you do file the 1099 form for the money you 'shared' with your camming 'partner', then you can deduct this abount as a business expense when filing your own year end tax return ( and thus avoid having to pay taxes on your partner's 'share' )
MissSeraphim
07-23-2012, 08:55 PM
I have some questions in regards to taxes..
I didn't make a whole lot last year so I didn't file... But this year I have a day job so taxes will be done.
Right now they're taken the minimum amount out of my paychecks. If I had them increase this so I "overpay" every paycheck, would that help me cover my taxes from camming income?
Also, I'll be starting my own business of doing adult novelty parties, could I actually combine the two? (the parties and camming income) So that it looks like all my income and such came from the business? Kind of like using it as a front. I figure they're along the same lines and if they poked their noses around I could say I sold them via webcam.
Plus, I'm thinking this way I could write off buying toys easier as well...while also having legitimate business expenses to write off. I do plan to get a separate business account at my bank to keep a better record of income/expenses, would it be wise to have the camming income go to that bank account?
Melonie
07-24-2012, 01:11 PM
I didn't make a whole lot last year so I didn't file...
As an independent contractor camgirl, you were required to file a tax return even if you earned as little as $600 total during 2011. If your webcam host submitted a 1099-misc report of 2011 income with your name on it to the IRS last spring, and you didn't file a 2011 tax return listing that 1099 business income, odds are that the IRS computers will pick that up and the IRS will 'come looking' eventually.
But this year I have a day job so taxes will be done.
Right now they're taken the minimum amount out of my paychecks. If I had them increase this so I "overpay" every paycheck, would that help me cover my taxes from camming income?
The answer is a definite yes. Having a 'straight job' employer automatically withhold higher than necessary estimated taxes from every paycheck essentially takes the place of separately filing quarterly estimated tax vouchers and making separate quarterly estimated tax payments. The trick though is to know how much to overwithhold ... which depends on a ton of variables. The first of these variables is how your total 2012 'straight job' earnings will compare to your probable 2012 camming earnings on a relative percentage basis ( since camming income is subject to different SSI / medicare tax rate ). The second is how high the total combination of your 'straight job' earnings plus your camming earnings will be for 2012 ( which affects percentage bracket for federal and state imcome taxes due on BOTH incomes ).
Also, I'll be starting my own business of doing adult novelty parties, could I actually combine the two? (the parties and camming income) So that it looks like all my income and such came from the business?
technically, yes. However businesses operating via self-declared earnings, i.e. lacking complete 'third party' backup of 1099 income reports to the IRS for payments made to that business, carry a much higher risk of IRS audit.
would it be wise to have the camming income go to that ( separate business only ) bank account?
yes, absolutely !
lifetravelergirl
08-20-2012, 03:50 PM
I think some of the girls who are saying they will never take a vanilla job or a 9-5 job are forgetting that humans frequently get older and loose their sex appeal.
sweetgapeach
08-20-2012, 05:33 PM
I think some of the girls who are saying they will never take a vanilla job or a 9-5 job are forgetting that humans frequently get older and loose their sex appeal.
I think that we just have to try harder to be the sexxxxy grandmas in our old age...lol!!!
Fridays
08-20-2012, 08:11 PM
I think that we just have to try harder to be the sexxxxy grandmas in our old age...lol!!!
we'll look amazing with bright red lipstick :D
~Carmen~
08-21-2012, 01:07 PM
I'm 52 and still sexy as hell}:D Bright red lipstick looks horrible on me.lmao
justanothercamgirl
08-21-2012, 08:35 PM
I think some of the girls who are saying they will never take a vanilla job or a 9-5 job are forgetting that humans frequently get older and loose their sex appeal.
Camming isn't like 'every day life' where being youthful and thin is the standard of beauty. You never 'lose your sex appeal' you just age into a different category. :D
Melonie
08-23-2012, 01:21 PM
I think some of the girls who are saying they will never take a vanilla job or a 9-5 job are forgetting that humans frequently get older and loose their sex appeal.
Those girls are also referring to the possibility that, if they make a 'serious, professional' effort at camming while they are 'young', and if they avoid spending their earnings like water and instead save their money and invest wisely, by the time they are in their 40's they may have built up a sufficient 'nest egg' where the interest / dividends / capital gains earned from their investments is large enough to allow them to retire without ever having to worry about working again in any form for the rest of their lives !!!
It worked for me, even though I got a 'late' start !
Alyce
08-26-2012, 03:47 PM
From a tax standpoint, you're absolutely correct. If you are a US resident, you're going to wind up paying a 15% Social Security + Medicare tax on every dollar of your income, plus a sliding scale US federal income tax of something on the order of another 15% ( for a single camgirl with a $50,000 annual income who does not own a home etc. ) Additionally, some US states will nail you with another 2-4-6% in state income taxes.
So yes there is clearly a cost / benefit equation to be considered for 'marginal' camgirls who are only generating $1000 in 'pre-tax' camming income for 40 hours worth of effort, or as you point out, $16.66 an hour net of taxes. The first major issue is the fact that camming, or any other self-employed business activity, provides zero 'free' employee benefits i.e. 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 a $12 an hour job with employee benefits these days isn't as easy as it once was either !
The second major issue is the fact that working as a camgirl will indeed create a 'paper trail' of previous work history in the 'adult industry'. This in turn may have negative future consequences regarding the types, and pay rates, of straight jobs that a retired camgirl may be able to land in the future. 5-10 years ago, the negative effects were more or less confined to a 'gap' in the retired camgirl's resume. However, today, between 1099's sent to the IRS by webcam hosts, cross-border financial transaction monitoring etc., it's increasingly likely that past adult webcam work will show up in a background check. And when image recognition technology starts being routinely applied in the future, i.e. a state or some private database starting with high school yearbook / driver's license photos and running blanket automatic match searches against pictures posted on the internet, there won't be any way to 'hide' an 'adult industry' work history. As to what sort of dollar figure to associate with this future risk of lower paying jobs I have no idea ... but it definitely won't be zero.
I was reading through the cam posts because I'm considering doing cam as well, and I got REALLY parannoyed once someone brought up the facial recognition software. So I've been researching and researching to see exactly how much it can affect you. I found quite a few articles to be somewhat helpful, but at the very least, very interesting:
This article describes facial recognition software and how exact it is expected to get, which appears to already be a little invasive on peoples' privacy...
http://www.slate.com/blogs/future_tense/2012/06/19/facebook_buys_face_com_will_mobile_facial_recognit ion_kill_privacy_.html
This article questions how far facebook and technology is going with FRS and the future use of it in human resources....
http://workplacediva.blogspot.com/2012/07/why-employees-should-fear-future-of.html
Yahoo question answered by users on questioning whether his previous experience in porn will affect his chances of becoming a surgeon. This one helped ease my mind a little- especially when i read the article at the bottom about the porn star-gone-lawyer guy.....
http://answers.yahoo.com/question/index?qid=20110626162746AA4THUs
This case is of a gay porn star who is studying hard to be a lawyer. The only reason he is having hardship is because a professor found out. How he found out remains a mystery ;)...
http://www.urbanswirl.com/entertainment/gossip/2075-gay-pornstar-turned-paralegal.html
Melonie
08-26-2012, 04:29 PM
^^^ again the unknown risk factor in regard to camming being outed in the future is a combination of A. internet images / postings remaining available in somebody's database forever, and B. steadily improving technologies making possible tomorrow things which aren't widespread or common today.
As to facial recognition technology, it is an unpublicized but reputable fact that certain gov't agencies already possess very advanced facial recognition software ... which is reportedly already being used in conjunction with 'municipal' camera images to aid anti-terrorism efforts. Thus there is no question in my mind regarding the ultimate ability of facial recognition software to analyze images and search databases to come up with a plethora of info regarding the person whose face was analyzed. The actual questions involve how quickly this advanced software capability will exit the present high security gov't sphere and find its way into the private sector. From a 'safety' standpoint, one must therefore assume that facial recognition technology will be much more widely available / widely used 10 years from now ... plus one must assume that 'adult' internet images being created today will still be floating around 10 years from now.
Perhaps an even more important question will be how a history of 'adult' industry work will affect people's lives / opportunities 10 years from now versus today. If high unemployment rates have indeed become the 'new normal', prospective employers with lots of qualified job applicants to choose from are more likely to cover their asses against potential 'surprises' by avoiding the hiring of job applicants with a work history involving the 'adult' industry. If political history repeats itself i.e. 4 years of presidential liberalism being replaced by 8 years worth of conservatism ( i.e. Jimmy Carter followed by Ronald Reagan ), a work history involving the 'adult' industry could become a more serious negative than it currently is. All of this is, of course, a 'crap shoot'. But unlike placing a gambling bet, once 'adult' internet content has been created, there is no way to take a short term winning bet off the table to avoid repeated losses in the future.
Alyce
08-26-2012, 05:30 PM
I'm sure before they make any privacy laws in regards to omitting personal life choices which are not illegal from a hiring procceas, many people are first going to have to take the fall and be subject to such embarrassment as being turned down for those reasons. Frs in my opinion should be used for just the purpose of determining of you are dangerous. Otherwise, omitting you because of your previous choice of work should be considered a prejudism. Using frs to also determine where you've been and whaT you've done ahould also be considered as a breach in privacy if an employer is going to think it will affect your work ethic. If you are qualified for a job and are in good standing with those qualifications, it shouldn't matter.
Melonie
08-28-2012, 11:24 PM
^^^ agreed in principle ^^^ But 'shouldn't' versus 'won't' is a major unknown risk factor. All that I can add in the way of real world commentary is that many prospective straight job employers are now requesting the signing of IRS release forms by job applicants - for the purported reason of wanting to ascertain the 'fiscal responsibility' of the applicant. And while one could never prove that a cause and effect relationship existed between an applicant's refusal to sign the IRS release form and no job being offered, or the applicant's signing of the IRS release form returning 1099 based previous 'employers' like StreaMates or Hustler and no job being offered, in a real world situation your 'shouldn't make a difference' may not actually be the case.
However, unless and until that potential cause and effect situation in regard to prospective straight job employers can be 'flogged through the courts' ( which is a tall order to start with ), and also results in a favorable ruling that a work history in the 'adult' industry cannot be held against a prospective straight job applicant ( which is an even taller order ), the risk factor remains in play. The underlying problem is that official legal 'disdain' for 'adult' businesses already exists in US law, and serves as the basis for such things as anti-'adult' business zoning laws, for 'pole taxes' on strip club customer entry fees, etc. Thus any court ruling that established that a history of 'adult' industry work cannot be used as a negative against a prospective straight job applicant would also, by definition, potentially challenge the validity of other 'adult' industry related laws and taxes. For this reason IMHO the 'odds' of such an official court ruling coming down any time in the forseeable future is slim to none.
To illustrate the legal point further, I'll relate a very real incident which occurred in this regard in Germany a few years ago. It begins with that country legalizing prostitution ... which essentially removed the official legal 'disdain' for girls working in the 'adult' industry in a manner similar to your proposed US court ruling. As a result, some German 'red light' clubs sent requests to the local gov't unemployment office listing job openings for young, attractive females. Based on those job listings, young attractive unemployed females were sent on job interviews at the 'red light' clubs. When those girls discovered that what the job actually involved i.e. providing sex for money, they refused the job offers. In return, the gov't unemployment office had no choice but to stop their unemployment benefit checks based on the girls' refusal to accept the 'legal' job offers made to them. In the end, based on a whole lot of public 'screaming' in German news media, this wound up requiring special legislation to be passed that officially (re)established that work in the 'adult' industry officially carries negative connotations in order to prevent unemployed German waitresses, teachers etc. from being 'forced' to work as prostitutes. See
Back to the original thread topic of 'is camming still worth it' ... one thing does appear to be true. It is that whatever potential 'negative fallout' in regard to future straight jobs / professional work that may result from a history of camming will theoretically be the same whether a girl performs camming work sporadically or works 'full time'. Therefore, in the way of personal opinion, girls who only plan to 'dabble' at camming may want to think twice before they start. On the flip side, girls who have already established a camming presence ( via internet images and 1099's ) might as well maximize their earnings because no additional 'damage' is likely to occur as the result of spending more hours on cam / creating more internet images / receiving 1099's from more webcam hosts.
Alyce
08-29-2012, 12:58 AM
Time to flip the coin!!!
Fridays
08-29-2012, 01:22 PM
Back to the original thread topic of 'is camming still worth it' ... one thing does appear to be true. It is that whatever potential 'negative fallout' in regard to future straight jobs / professional work that may result from a history of camming will theoretically be the same whether a girl performs camming work sporadically or works 'full time'. Therefore, in the way of personal opinion, girls who only plan to 'dabble' at camming may want to think twice before they start. On the flip side, girls who have already established a camming presence ( via internet images and 1099's ) might as well maximize their earnings because no additional 'damage' is likely to occur as the result of spending more hours on cam / creating more internet images / receiving 1099's from more webcam hosts.
Melonie, I always appreciate your posts.
I would like to know what you think about this "raise your rates-challenge" issue that so many of us face.
maybe you could post your thoughts there?
Melonie
08-29-2012, 03:00 PM
^^^ I have to be somewhat careful in drawing general conclusions about camgirl economic conditions since my 'huge boob' niche market ( and customers ) doesn't always share similar situations.
At any rate, one immutable law of economics is supply versus demand. If supply increases while paid customer demand does not, earnings go down. If the 'supply' of camgirls in general, or the supply of 'product' that is available for free or at comparatively low prices is increased, average earnings per camgirl goes down.
Beyond that, in any oversupplied market, suppliers are sometimes successful in maintaining / increasing market share by differentiating their own product as being 'higher quality' than competitors' product. In a niche market like my own 'huge boobs' niche, it's fairly easy to differentiate your product offering ( by getting bigger breast implants, for example ). Outside of a 'niche' market, differentiation is more difficult.
In a 'commodity' based market, customers are typically seeking maximum 'bang for the buck' and are not particularly interest in paying extra for supposed 'higher quality'. 'Commodity' based markets become highly competitive, with the most successful suppliers typically having to provide 'blue light specials', and low unit prices in order to maintain sales volumes. This also usually involves 'margin compression' i.e. having to sell more 'units' of product in order to achieve the same 'profit'. Arguably this applies to big box retailers as well as average camgirls !
Superwoman1989
09-05-2012, 08:53 AM
isn't 30 percent a bit high? I'm no expert, but was curious........
if any tax professionals are reading this, please PM me because I've been keeping all my receipts and records and wondering how much of any of my expenses I can deduct and how much I should be setting aside. I may have to find a accountant for all this, so I'm wondering if anyone could steer me in the right direction for information.
if I don't get a response on this thread, I'll make another post pertaining to it. thought I'd start here first.
Thanks!
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 :)
pixiepower329
09-06-2012, 04:23 PM
Most girls who are taking this business serious enough to actually be working a legitimate 40 hours a week are making WAY more than $1,000 per week. Heck, judging by my income from working about 15-20 hours per week, if I upped myself to full time I'd be closer to $3000 per week. Well worth the tax drawbacks.
Avi Hale
09-07-2012, 05:09 PM
So do most girls tend to take 30 percent of every check or is there some leeway to go buck wild one a few checks?
Melonie
09-08-2012, 03:34 AM
^^^ ultimately, US camgirls and dancers owe estimated tax payment money to the IRS every three months ... with the due dates being April 15, June 15, Sept 15 and Jan 15th ( or nearest business day ). If estimated taxes are not paid as required on these dates, the IRS starts charging interest on the unpaid amount. And if estimated taxes are not paid for extended periods, the IRS can add 'under-withholding' penalty charges on top of the interest charges. Thus deciding NOT to self-withhold enough money to make the quarterly estimated tax payments can potentially result in a steeper tax bill later.
As to the actual effective tax rate for US camgirls and dancers, this is a function of both total annual income and a whole lot of personal variables ( like being married, owning a home, having kids etc.) as well as what state / city you live in ( i.e. additional state and local income taxes over and above federal taxes ). One constant is that federal Social Security / Medicare tax ( a.k.a. self-employment tax ) will want 13% of your total income up to $106,000 per year, and 3% of your total income above that amount. US federal income tax works on a sliding scale, where a girl earning $50k per year might owe 10% while a girl earning $150k per year might owe 25%. In states ( and a few cities ) which impose their own income tax, a girl earning $50k per year might owe 3% while a girl earning $150k per year might owe 8% ( plus another 1% to 3% in city income tax ). Again there are a ton of personal variables, but my point is that the 30% figure is not cast in stone. A part time camgirl living in a state with no income tax might actually wind up only needing to pay 20% total tax, whereas a serious full time camgirl living in NY City might wind up needing to pay close to 50% total tax.
I would also point out that, thanks to the Social Security tax cap at $106,000 in annual earnings, meaning that additional Social Security tax is NOT owed on income above the $106,000 amount, there is a major incentive for serious professional camgirls and dancers to maximize their annual earnings because they get to 'keep' far more of the money they earn from $106,000 upward. Well that's true until their annual earnings reach $200,000 - at which point new 'tax the rich' provisions start kicking in. Or stated in a different way, dancers and camgirls earning $50k per year or less will wind up paying comparatively low total tax rates ( and yes 20-25% is low in terms of US business tax rates ). As their annual earnings increase from $50k to $100k per year their total tax rate rises rapidly. Once they exceed the $106,000 Social Security tax cap their total tax rate drops significantly. As their annual earnings increase from $106,000 to $200,000 their total tax rate begins rising again. And once their earnings exceed the officially 'rich' level of $200,000 per year, their total tax rate rises sharply !
As a caveat, I would also point out that ... under current US tax laws ... Social Security tax rates are set to increase by 2%, and federal income tax rates are set to increase by significant amounts, once January 2013 arrives. While it's still possible that these tax increases will be rescinded by new legislation, at the moment they are on 'auto-pilot'. Thus going into 2013 with a 'back tax bill' to pay on top of paying current tax liability will NOT be a pleasant situation.
NewCamGirl1
09-08-2012, 02:30 PM
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 :)
The median annual income for my county is 18 thousand dollars per year. I am in the two percent of people who hold higher than a high school diploma. So, yes, if you live in a place like mine, you can make it on one thousand a week, for sure.
You do remember that as a home business owner you can do these things to alleviate your taxes,
Calculate the size of your home, then calculate the size of your cam room, turn that into a percentage. So if your cam room is 15 percent of your home, then you claim 15 percent of your rent/mortgage as a business expense.
You claim a portion of your water, gas and electric bill each month. This is for your business.
You claim a portion of your internet charge each month
You also save all the receipts for your cam materials. Those are a write off.
If you have a phone, you claim a portion of that for your business.
And, self employed individuals also get to claim an amount for your vehicle. I have read on the IRS site that this is usually pre determined by the IRS.
Then, you go check the IRS website every year, because they always offer credits and such for things that they didn't the year prior. One year I got a credit because I had a cell phone and not a land line. Little things like that come out every year.
I would budget 35% for taxes. Open a savings account, put it in there, along with your real savings if you have any. That way, at the end when you get all said in done you will have the money to cover your taxes and probably it won't take all of it. Then, you just leave it alone in your savings account and it's savings!
Melonie
09-09-2012, 06:56 AM
^^^ I would only point out that the 'home office' business expense tax deduction is already included on the IRS list of 'high risk of abuse' tax deductions ... and as such is MUCH more likely to trigger an IRS audit of tax returns that claim this deduction. On a different note, in some cities, claiming the 'home office' tax deduction for camming can also lead to potential NEW problems because claiming this deduction puts you on record as conducting a business ( adult business, actually ) from a residential address ... which may violate local zoning laws, which may violate apartment lease provisions etc. I'm just trying to say that the potential tax dollar savings resulting from claiming the 'home office' business expense tax deduction should be weighed against potential negative consequences that could result from claiming that deduction.
In regard to budgeting for estimated taxes, 35% will almost certainly cover it for all but the most successful full time camgirls. Similarly, if you live in a state that does not levee it's own state income tax, you can probably cover it with 30%. After working for a full year, and filing a tax return for that full year, you'll be able to determine the percentage figure for the following year much more accurately. Well, again, that assumes that you take into account rising Social Security tax rates, rising federal and state income tax rates etc. which could apply in the following year.
Fridays
09-09-2012, 09:58 AM
Melonie, our trusted financial expert... we bow to you...:worship:
Melonie
09-19-2012, 10:50 PM
^^^ it's inevitable that one will learn lots of details about dancer / camgirl tax rules if one has been audited repeatedly over the years !!! Also, a lot can be learned by sitting on the laps of businessmen, attorneys and accountants in VIP over those same years as well !!! And it also helps that one particular lawyer who also happens to specialize in tax law has been a friend of mine since childhood ( and happens to love huge boobs LOL ).
sexysadie7
09-20-2012, 04:15 PM
Wait, so my history as a camgirl could show up if a future employer did a background check and looked through my 1099 forms? Um, forget that!
I'm trying to think of ways I could make side-money off of this. I have a full-time job (I earn $38k/year from my 9-to-5), but I'd like to cam for spending money.
I'm pretty confident about my anonymity, as people--even friends that see me every day--never recognize me in my photos. I don't know what it is, maybe I just carry myself differently, and if I'm wearing make-up and dressed to show off, I look completely different than I do in real life.
Are there sites that aren't super-porn-y-sounding, so it wouldn't be a huge deal if they showed up in a background check? Or ways I could make the spending money without being tracked? Maybe if I encouraged men to buy me things from an amazon wishlist (set up under a fake name, of course...) instead of getting on a cam site...
Paypal seems pretty decent, because you could always tell an employer that you earned money cutting hair or something. It doesn't seem like there would be a way to prove that you were running an adult business. But of course there's the risk that it could get shut down if someone reports you, or you could deal with charge-backs.
twistedprincess
09-20-2012, 04:57 PM
.....
annabellz
09-20-2012, 05:20 PM
^ agreed. Paypal is a big no no. Im not really sure how you would go about getting guys to buy you things from an amazon wish list either. I mean where would these guys come from? how would they find you?
Youre best bet would be to join Princess Jennys Daily Pay studio. She works with SM, MFC and Adultwork. She currently doesnt issue 1099s- but you still are responsible for filing taxes (you file as an independent contractor -report the amounts with a schedule C etc etc, just with no 1099 attached)
Jinja
09-21-2012, 06:47 AM
Streamate told me they send 1099s to performers, even if you're signed up through a studio.
annabellz
09-21-2012, 10:47 AM
^that doesnt quite sound right. I mean it does and it doesnt. It sounds like a canned response that could be right with further clarification. SM does report 1099 on all performers, even those in studios. No one is exempt from receiving one directly or indirectly. Any one who works for them gets one and has their info reported to the IRS. If youre a work at home model and you work under your own SS # your income is reported under that number. The 1099 is mailed directly to your home address or whatever address you have on file with them and a matching copy is mailed to the IRS.
If your with a studio one 1099 form is mailed to the studio at the end of the year covering all the performers who worked for the studio throughout the year and their earnings.(and the matching one to the IRS) A studio is a business so it has its own tax id number. A US studio will then issue its own 1099 forms to its models with its own companies name on it with the models respective earnings. (Models that work for studios do not receive 2 1099s one from SM and one from the studio, just one from the studio- if its in the US and the studio chooses to issue it- and if for some odd reason you were to receive 2 you shouldnt report both!)
But regardless PJs studio is based in the UK, so she is under no obligation to issue 1099 forms to the US models detailing the earnings they received, so she doesnt.
So techincally SM does issue 1099 for all performers but they dont 'send' them to all performers. They either go directly to the performer if your independent- or to the studio if youre a studio model.
Jinja
09-21-2012, 02:01 PM
I don't know if it is correct or not, but they told me "The 1099 form is sent to the studio as well as models". That's a direct quote from their email response.
Rosannaxox
09-21-2012, 02:59 PM
On the background check what exactly would come up?
Rosannaxox
09-21-2012, 03:00 PM
And are current employers told about this? *freakijg out*
twistedprincess
09-22-2012, 10:28 AM
.....
CurvyWinona
09-22-2012, 11:29 AM
Let me understand clearly.. SM sends 1099 to Jenny's studio, not to models? So models don't report to IRS their earnings?
annabellz
09-22-2012, 11:46 AM
^^If youre a US model and part of PJs daily pay studio on SM she will not send you a 1099 form at the end of the year. As a Us citizen/resident whatever you are- you are responsible for reporting any income you earn regardless of whether or not you receive a 1099 form. If you fail to report your income you are committing tax fraud and if caught you will be prosecuted.
The advantage to not having a 1099 with a cam site name attached to your taxes would be for models who are trying to keep their records 'clean' for future background checks.
CurvyWinona
09-22-2012, 11:51 AM
Got it. :) I would like to have less 1099s on my name that is tied to camming. I'll have to research on how to report my earnings without having to use camming info. Is that possible with MFC and C4S?
CurvyWinona
09-22-2012, 11:55 AM
Nevermind. I see she works with MFC too. Um I'll talk to her
annabellz
09-22-2012, 12:02 PM
PJ offers daily pay for SM adultwork and MFC. You can find sign up links for Daily pay in this thread or search the forum for info and reviews about her and dailypay- http://www.stripperweb.com/forum/showthread.php?177068-Daily-Weekly-Pay-*princessjenny*
For something like C4s the only way to distance yourself from it for tax purposes would be to research starting a LLC (which depending on how much you actually earn on C4S may not be worth it)
twistedprincess
09-22-2012, 12:04 PM
She's pretty awesome from what I've seen. As for filing without a 1099 Melonie is the tax guru around here. You just claim it as other income, but I' not tax expert. I <3 Turbo Tax.
CurvyWinona
09-22-2012, 12:14 PM
Haha. Yeah. Thanks for tips! I would claim it as an other income if its possible. I want to file without 1099. Can I just keep 1099 to myself and file the earnings as other income? If there's an audit, I can show 1099 or whatever.. Would that be okay? Gosh, I need to be prepared. Haha
Melonie
09-22-2012, 02:21 PM
^^^ technically speaking you're supposed to report business income via Schedule C. You can do so without providing detailed 1099 backup information, but that can increase the chances of an audit if 1099's are sent to the IRS by your webcam host and there's no line item detail available which allows the IRS to 'connect the dots' that the 1099 income has indeed been reported and taxed.
CurvyWinona
09-22-2012, 02:37 PM
That is true.. It makes sense for them to do that. I am definitely gonna research all when I have some time, during my period days... haha. Are you, by any chance, a tax bookkeeper? I'd like to have one with experience on dealing with webcam girls.
annabellz
09-22-2012, 03:42 PM
If you were issued a 1099 the best thing to do is report it the proper way. Sure you can keep it to yourself and claim the income as 'other income' but like Melonie mentioned it might trigger an audit. If you received a 1099 form it means the IRS received a corresponding one. It might not be right away, but at some point, maybe even years later, when the IRS computer gets to it- it will look to match them up and when a match isnt found- the audit is triggered.
Audits are not free so to speak. Its not the like the IRS sends you a notice that says - oh we see you filed something wrong so we corrected it and all is forgiven. There are penalties and fines and interest. Once you are audited they will continue to watch you and examine everything you file like a hawk for years looking for errors.
So if you are going to file with out attaching your 1099s make sure you do so properly. You would probably need to hire a tax professional. That would be a CPA who specializes in taxes and not one of those tax preparation services places that pop up around tax season. So shop around. Find yourself a local accountant and explain your situation, tell them why you dont want the 1099s attached, if theyre experienced, they should be able to guide you properly.
CurvyWinona
09-22-2012, 03:48 PM
Thank you for your input!! Yes, I understand. I am also dealing with my husband getting a green card to move here... so I am not sure if I need do full honest and attach 1099. I just do not want USCIS to find out i am a webcam girl.... I am trying to think what is right thing to do.
annabellz
09-22-2012, 07:08 PM
^If you are a US citizen and applying for a visa for your husband to move here USCIS has little concern about your job, all they care about is the amount you earned this year and the years prior. They are looking to see that if they allow your husband entry he wont become a burden to the state and that you will be able to support both of you. If you dont earn enough, or your earnings havent been consistent over the past few years, or they dont consider the job 'steady and reliable income' (I mean theres a difference between providing them with returns showing youve worked in retail the last 5 years and have consistently earned 20k each year and working on cam the last 5 years where your earnings have fluctuated anywhere from 5k one year to 25k the next) They may ask you for a co-sponsor- which is simply someone you know who meets the income guidelines filling out a form (and providing the UCIS with their financial info) promising to step in and financially 'take care of' your husband if or when it ever became necessary. Immigrants that are granted entry with a co-sponsor are barred from receiving public assistance- because thats what the co-sponsor is- insurance that someone is financially responsible for them.
CurvyWinona
09-22-2012, 07:17 PM
Thank you!! I feel much better now. haha. I have collected co sponsor's tax info just in case I may need him. I only started camming this year, because I lost one of my income sources and I am trying hard to afloat. My job is allowing me leave for 3 months, of course with resignation, to take a break and be with my husband. But I will return to work and they will try and have my husband work with them too once he moves here and has a work permit. So, I am trying to collect all info I can show I can support him. I am seeing a lawyer with my co sponsor and have him write up letter that this house is gonna be my husband's home too once he lives here and will have no burden. *pulls my hair out* its too mess to figure out. haha
CurvyWinona
09-22-2012, 07:30 PM
And one question, should I say I am a webcam girl to USCIS? Or I can say something else? I will file taxes in spring and I am still not sure what to say what I do. haha
twistedprincess
09-23-2012, 03:01 PM
Depends on your 1099, If its not too specific you could list it as modelling