View Full Version : SM Issuing 1099
DiamondCupcakes
02-25-2012, 09:35 PM
Thanks for the positive feedback. I wound up learning a lot while sitting on the laps of bankers, brokers, corp. execs, politicians etc. in Manhattan VIP rooms for all those years ! I also wound up learning a few things 'the hard way' via IRS auditors, courtrooms etc. Here's my chance to 'share' some of that knowledge.
Where this particular topic is concerned, all I can say is that recent IRS / US State Dep't actions involving 'offshore' banking institutions, recently enacted new laws ( and even more so proposed laws that are now on the table ), etc. are painting a clear picture that the incomes and investment profits thus tax liabilities of US citizens will be an increasingly 'open book'. And this is true if the source of that income is inside or outside the USA, if the US citizen is residing inside or outside the USA, if the saved / invested money by that US citizen is inside or outside the USA. Setting aside issues of whether this change is 'good' or 'bad', where the adult entertainment industry is concerned it is definitely a change ... at least a change versus the way 'things used to be' 10 years ago.
Today, camming and exotic dancing are truly treated as business activities by the IRS. This means expectations of 'professional' business book-keeping, timely and complete tax filings etc. If you conduct your camming or exotic dancing business 'professionally', and do your estimated tax payments and annual tax returns in a timely and complete manner, there's absolutely no cause for concern. But if you don't, the probability has never been higher that the IRS will be paying you a 'personal' visit !
I find it amusing that camming is seen as a legitimate professional business in this sense and the US is more than willing to accept out tax money. This is probably the only time the US and its citizens consider us business professionals. Le sigh
I'm planning on using excel or outlook from now on to keep records of my earnings and taxes.
And yes thanks Melonie! We wuv you!
Blovely
03-05-2012, 10:05 AM
just in case anyone's still wondering about daily pay, i got an email from princess jenny saying that daily pay girls in the u.s. won't receive 1099s (but still report your income!).
I'm on DP an in the U.S an I just received my 1099 today from SM. Anyways the amount on my 1099 is less then what I actually made. Does anyone now if that will be a problem when I file my taxes? An does anyone know why the amount would be less then what I actually made?
Cam_Model_Jess
03-05-2012, 10:14 AM
They are only figuring in the checks that were issued in 2011 and not your actual earnings. Calculate the amounts issued for 2011 and see if it matches.
I just checked mine and it's off too. After adding up my checks, I figured out it's fees that I forgot to add to my earnings (I was only adding the paycheck totals).
Blovely
03-05-2012, 10:22 AM
Thks Jess, they sent the 1099 for my old SM account. It was the earnings before I switched to DP.
Cam_Model_Jess
03-05-2012, 10:35 AM
Oh yeah, that would be a big difference. I heard that DP people weren't getting a 1099, so I was kind of surprised you got one.
Cam_Model_Jess
03-05-2012, 11:52 AM
They are only figuring in the checks that were issued in 2011 and not your actual earnings. Calculate the amounts issued for 2011 and see if it matches.
I just checked mine and it's off too. After adding up my checks, I figured out it's fees that I forgot to add to my earnings (I was only adding the paycheck totals).
Hmmm... I went back and looked again. I actually DID add in the fees when I was figuring it out. It looks like SM has only reported my income minus fees though. I'm not sure if that's the "right" way to do it, but it looks like I have to decrease my income by the amount of the fees because that's what they're reporting.
Anyone else pay any fees that they're not reporting?
SarahTime
03-05-2012, 12:02 PM
Okay wait... so they are reporting your check amounts MINUS the fees? Because I was planning on reporting my income INCLUDING the fees, and deducting the fees as an expense... Good thing my spread sheets keep track of the amount with and without fees... Interesting they would not include the fees since we are the ones that have to pay the fee...
Laurisa
03-05-2012, 12:02 PM
My SO and I quit camming about 2 1/2 months ago.
We had them deactivate our account. Will we be getting a 1099?
SarahTime
03-05-2012, 12:03 PM
My SO and I quit camming about 2 1/2 months ago.
We had them deactivate our account. Will we be getting a 1099?
Yes, if you earned anything at all with SM in 2011 you will be getting a 1099. You will get one for 2012 also, when the time comes, if you worked any time at all during 2012
Laurisa
03-05-2012, 12:08 PM
Well we haven't gotten a 1099 yet, and our account was closed a while ago.
We didn't make much money and barely made anything. The payments were in my SOs name so he'd get the 1099, not me. We'd only owe the IRS $200-300 tops anyway, and he hasn't filed his taxes to my knowledge so it should be fine.
I'll check the mail but I also didn't receive an E-Mail from them.
bubblegumbitch
03-05-2012, 12:13 PM
you only have to file ur taxes if you made $400 and up in a single year. if you made less than that then you don't need to worry about filing at all. if you don't receive a 1099 from them then go back through ur statements and records to track ur income, i personally wouldn't just depend on them to issue a 1099. they may only issue 1099's for 2011 and up, who knows with them.
Laurisa
03-05-2012, 12:19 PM
We'd only owe like $200 with no deductions. It might push my SO into a higher tax bracket because of his other jobs, so worst case scenario we owe them $300.
I can pay them $200-300, but we haven't gotten anything yet and our account is closed. I just tried logging into it and they said they didn't recognize my email address or password. I really don't think the IRS is going to come a knockin over $200, waste of gas for them. Its not in my name because it's a couples account, it's in his name. And he's a federal employee and has another job where he reports income so they are giving him a return.
Cam_Model_Jess
03-05-2012, 01:15 PM
Okay wait... so they are reporting your check amounts MINUS the fees? Because I was planning on reporting my income INCLUDING the fees, and deducting the fees as an expense... Good thing my spread sheets keep track of the amount with and without fees... Interesting they would not include the fees since we are the ones that have to pay the fee...
Yeah, that's what I was thinking. I included the fees in my income because it's still income. I still made it, it was still mine. I then CHOSE to pay certain fees a couple times when I changed my payment method. So, as I understand it, I should be paying taxes on those fees. But I've asked my tax person, because maybe I'm missing something...
Cam_Model_Jess
03-05-2012, 01:18 PM
I don't know... I'm not tax expert, but I'm pretty sure you have to report all self-employment income if your spouse is filing. I think people get confused on this, because SM will not be issuing you a 1099 unless you made $600 or more. They came right out and said that, so that's confirmed. I know models who made less than that and did not get a 1099. However, that doesn't mean you aren't "supposed" to pay taxes on it. Your husband deposited those checks, there's a papertrail, and I wouldn't risk avoiding it. How much would you really owe anyway? Probably a couple hundred. Why not just pay it? It's not really any of my business, but purposeful tax evasion (or evasion of any kind) is serious.
Cam_Model_Jess
03-05-2012, 01:21 PM
Alright, I looked it up again. So here's what the IRS says...
What are My Self-Employed Tax Obligations?
As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.
Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).
Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.
You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions.
As I understand the instructions, if you're "Married Filing Jointly," you must file a return, regardless of self-employment income, if your total income is at least $19,000 (yours & your spouse's total). If you're "Married Filing Separately," and your income (alone) is less than $3,700 you don't have to file, so you don't have to claim SE income.
However, your spouse gets deductions for you if you file jointly, and not taking those deductions could push him into a higher tax bracket or otherwise affect the amount you owe, this making it worth it to file jointly and claim your income.
Also, if you chose one filing status last year and are changing that for this year, you'll need to file another form to change your status.
SarahTime
03-05-2012, 02:46 PM
I just got my 1099 today too. They did report my income AFTER the fed ex fees. Which, is weird since I paid the fees, not them. Hmm...
Laurisa
03-05-2012, 03:47 PM
I checked our mail today, no 1099.
I'll keep checking through this week but no sign of it so far.
bubblegumbitch
03-05-2012, 06:06 PM
i just got mine today as well. this is the last 1099 that i expect to come for me, so i will be filing mine asap.
Nikki_Fox
03-05-2012, 06:33 PM
I havent received mine either - I just filed off my check totals
sammii
03-06-2012, 12:07 AM
So do I need to amend my return if I reported the SM income before the Fed-Ex fees? It would be kind of silly, because I only used Fed-Ex once or twice, but I'm trying not to raise IRS eyebrows. The 1099 form went to my old address so I just used the payment history.
HollyJayde
03-06-2012, 02:10 AM
1) I just received my 1099 today and it says 'Streamate Limited' 2) If they were to consider you an 'employee' they would be putting themselves liable for a)income variations b)unemployment c)workers compensation and it would also entitle them to 'schedule' you and control your minute rates. Being an employee is NOT GOOD. Being an independent contractor or sole proprietor means you get to write off everything you use for business. Wardrobe, lube, toys, office space (bedroom..yes you can write off your bedroom as an office space) etc. As far as Streamate&background checks... I personally don't care who knows. I mean, I chose to get naked on camera. We all know Streamate records our shows and guests always can take screenshots and pictures. Once you start camming its obvious that eventually someone you don't want to find out, will find out. In the past when I would cash checks or someone would see my checks or paystubs, I told them I was a model recruiter. Who cares. I'd rather be a 'slut' in other peoples eyes than many other things in my own.
Melonie
03-06-2012, 04:24 AM
I just got my 1099 today too. They did report my income AFTER the fed ex fees. Which, is weird since I paid the fees, not them. Hmm...
Apparently StreaMates applied the assumption that the fed ex fees are a fully deductible business expense, and 'netted out' the amount reported on the 1099. As long as your Schedule C entry for SM income and SM business expense deductions is consistent with this assumption, there shouldn't be any problems.
do I need to amend my return if I reported the SM income before the Fed-Ex fees? It would be kind of silly, because I only used Fed-Ex once or twice, but I'm trying not to raise IRS eyebrows
If you reported your 'total' SM income based on your own payment records ( which is greater than the 1099 amount reported ), and then deducted Fed-Ex fees as a separately listed business expense, you wind up at the same 'place' technically speaking. What you DON'T want to do is report the 'net' amount of SM 1099 income as total income, and then attempt to deduct Fed-Ex fees ( a second time ! ).
miss1dancypants
03-06-2012, 10:55 AM
ok i am not a cam girl yet but i want to work for streamate, however i graduate from college in may and my degree calls for me to work for the government. town and city level government. will this show up if they do a background/employment check? :/ if so its not worth it to me to TRY camming with a huge possibility of not succeeding (since it is a hard job) and risk not being able to get a "real" job ever... thanks for the info ladies xoxo
SarahTime
03-06-2012, 11:05 AM
Being an independent contractor or sole proprietor means you get to write off everything you use for business. Wardrobe, lube, toys, office space (bedroom..yes you can write off your bedroom as an office space) etc.
This is not entirely true, it's a good idea to read more on the taxes threads and some things in the dollar den. Just search for the "housewife test". Also, it's very tricky to write off parts of your house for your business... you should look up the specific requirements (they are very specific) on what circumstance you can write off a part of your home.
I just don't want anyone to see this statement and then think they can carelessly go writing off clothes, makeup, toys, lube, their entire bedroom, etc. and then find themselves in a bind when they get flagged.
EDIT: From the irs.gov website "You must regularly use part of your home exclusively for conducting business. For example, if you use an extra bedroom to run your online business, you can take a home office deduction for the extra bedroom."
So, you could not write off your bedroom as a business office space because you also sleep in there and use it as your, well, bedroom. It would have to be EXCLUSIVELY used for business. So, my extra room in my home that I cam from, I use exclusively for camming. That qualifies, but a personal bedroom does not. Just a heads up!
SarahTime
03-06-2012, 11:07 AM
ok i am not a cam girl yet but i want to work for streamate, however i graduate from college in may and my degree calls for me to work for the government. town and city level government. will this show up if they do a background/employment check? :/ if so its not worth it to me to TRY camming with a huge possibility of not succeeding (since it is a hard job) and risk not being able to get a "real" job ever... thanks for the info ladies xoxo
I would not risk it at all if I were you...
bluexxxtasy
03-06-2012, 01:30 PM
i just got my 1099 from them today in the mail and let me just say HELL NO! i always do my taxes in january and they are sent off and received by usually then end of january beginning of feb at latest... i just can't imagine waiting until like now to do my taxes....and this was the only mail i got today lol man i just can't...thats the point of getting paid in cash or being independent contractor once dec 31st hits i can start doing taxes... *end of mini rant*
SarahTime
03-06-2012, 02:22 PM
Yah it's a pain...
sammii
03-06-2012, 02:51 PM
If you reported your 'total' SM income based on your own payment records ( which is greater than the 1099 amount reported ), and then deducted Fed-Ex fees as a separately listed business expense, you wind up at the same 'place' technically speaking. What you DON'T want to do is report the 'net' amount of SM 1099 income as total income, and then attempt to deduct Fed-Ex fees ( a second time ! ).
Thanks!! I forgot to deduct the Fed-Ex fees, but I didn't include the Fed-Ex fees in my "total." I'm not really worried about it, because even though it might not be the exact same number that SM reported, my records should only be $25 or $50 more than they reported. I only used Fed-Ex once or twice when I needed my check sooner.
sammii
03-06-2012, 02:57 PM
If you keep records of how much you earned, you don't need to wait for the 1099.
bluexxxtasy
03-06-2012, 04:47 PM
yeah i thought that thread went from hysteria over them sending them out to more of a educate on 1099s type of thing..and since i was mostly just venting i fig that mite take away from it.. they can move it or delete this one no worries
Yah it's a pain... you can read all about it here: http://www.stripperweb.com/forum/showthread.php?170079-SM-Issuing-1099 :) Just a few threads down. Lots of good info in that thread as well.
Melonie
03-07-2012, 03:03 AM
that thread went from hysteria over them sending them out to more of a educate on 1099s type of thing
Well, undoubtedly, where some camgirls were concerned, receiving a 1099 from SM was indeed grounds for hysteria ... given that some camgirls assumed that their 'foreign' earnings would ( again ) escape IRS attention. Legalities aside, going from a 0% effective tax rate to a 25-30% tax rate can come as quite a shock ... and especially so when no provision for estimated tax payments was made last year such that they must now find a way to 'cough up' 25-30% of last year's total earnings to pay the IRS before the upcoming April 17th tax return filing deadline !
h0ttie
03-07-2012, 10:29 AM
so what if we are with a studio? (daily pay)
are we still going to get a 1099?
Cam_Model_Jess
03-07-2012, 11:12 AM
This is not entirely true, it's a good idea to read more on the taxes threads and some things in the dollar den. Just search for the "housewife test". Also, it's very tricky to write off parts of your house for your business... you should look up the specific requirements (they are very specific) on what circumstance you can write off a part of your home.
I just don't want anyone to see this statement and then think they can carelessly go writing off clothes, makeup, toys, lube, their entire bedroom, etc. and then find themselves in a bind when they get flagged.
EDIT: From the irs.gov website "You must regularly use part of your home exclusively for conducting business. For example, if you use an extra bedroom to run your online business, you can take a home office deduction for the extra bedroom."
So, you could not write off your bedroom as a business office space because you also sleep in there and use it as your, well, bedroom. It would have to be EXCLUSIVELY used for business. So, my extra room in my home that I cam from, I use exclusively for camming. That qualifies, but a personal bedroom does not. Just a heads up!
Right, Sarah. I think sometimes it's hard to understand what the IRS means. The website is very specific though. I really think their website is useful. When I had two bedrooms, I deducted one as camming space. But now that I only have one bedroom, I do not deduct it as camming space. Also, you can only claim partial bills. Ex: If your "camming" bedroom is 10% of your total square footage, then you can only claim 10% of your rent. You can claim up to 50% of your cable bill (only the internet portion) or if you had to "up" your internet speed, you can claim the difference in the bill. You can claim more than 10% of your electric bill if you know that you're using more than 10% of it for camming (if you have old and new bills and can PROVE the difference). You can claim portions of your other bills too.
But it is good to be very cautious with all of this. If you just go claiming all your bills, or even 50% of your bills, that's gonna be an issue because a "home office deduction" is a pretty big red flag. Also, there's a difference depending on who you're working for. So if you also have a job with another company and you work from home but working from home is for your convenience and not your employer's convenience, then you can't claim the office in the same fashion. I'm only mentioning this because some people have more than one job.
This is discussed at length in other threads. So if you haven't yet done your taxes and don't have a firm grip on what you can/cannot claim and are thinking that you can just deduct it all, I encourage you to read up. Read the threads here, ask questions, and most of all, read the government's website. It really is a good resource.
Cam_Model_Jess
03-07-2012, 11:21 AM
so what if we are with a studio? (daily pay)
are we still going to get a 1099?
PJ said no 1099 from DP for U.S. girls. So you would just use your paystubs/deposit info.
You don't need a 1099 to file of course. But I found out I was getting one and chose to wait on submitting my taxes and re-do them when I got the 1099, just in case. And I'm glad I did. I will be reducing my income by the Fed Ex fees. I never claimed them as an expense when I did my taxes the first time, so things don't add up and I have to re-do the numbers anyway. But I'd rather have the "earnings" figure match the figure on the 1099.
By the way, we only got the "keep for your records" copy of the 1099. This is the first 1099 I've ever gotten, so I don't know for sure. But doesn't that mean SM submitted a physical copy of each 1099 to the government? If so, I for sure want to decrease my income amount the reflect the fees.
Laurisa
03-07-2012, 05:04 PM
My 1099 amount was so low that I don't owe any money from that to the IRS.
sweetsam
03-19-2012, 06:16 PM
Well I haven't been on my SM account in a while, I filed my taxes way before the IRS was even open to file them this year....
I also just amended my tax return for a form that I didn't have at the time I filed for my school.
I logged on yesterday, and it said if I did not update my account before February something, I wouldn't be able to stream. Well I logged on yesterday, and was able to update my information and still stream if I wanted too.
A 1099 doesn't really mean anything to me, I am used to it, I have been filing 1099's for MFC for 4 years now.
When I did my taxes I had already included the income I made from SM...
It's interesting that they are doing a 1099 though, I prefer 1099's.