What happens if you don't attach your 1099s but you claim the income?
What happens if you don't attach your 1099s on your taxes but you claim all of the income you made? Does anything happen?
I have no idea how many 1099s I have coming, but they will be mailed to an old address anyway. My 1099s would be from both strip clubs and perhaps cam sites. The cam site ones I will attach though because they will be mailed to my current address.
Re: What happens if you don't attach your 1099s but you claim the income?
In general, if the total amount of taxable income reported exceeds the sum total of all of the 1099 income received by some reasonable margin, from a 'legal' standpoint there isn't any problem in regard to income having been reported and appropriate taxes having been paid. However, if 1099's start showing up in IRS computers that don't have matching line item entries on the taxpayer's tax return's Schedule C line item detail, it CAN increase the probability of an IRS audit. So can tax returns reporting the exact amount of 1099 income but zero additional non-1099 income.
Re: What happens if you don't attach your 1099s but you claim the income?
Quick question though, what do you do in case you are not sent a 1099? I've never been in this situation before. I have always held a regular job so I don't know what I should do. I just started camming in November on SM so should I just attached the paystubs? I'm not sure I want the tax preparer to see the name SM on there, if you get my meaning.
Re: What happens if you don't attach your 1099s but you claim the income?
^^^ SM probably isn't going to send you a 1099 in any case, since they are not a US based company. In this case you can give your tax preparer a total dollar figure based on the sum total of your SM check stubs. You don't need to send in actual check stubs. But you should keep them for your own records just in case you are audited.
Re: What happens if you don't attach your 1099s but you claim the income?
Thank you Melonie!!! You're a life saver ;)
Re: What happens if you don't attach your 1099s but you claim the income?
Call the IRS, and give them your ID data, they will tell you what was reported for you via 1099 for any calender year. You always want to account for all reported monies. If you are in a cash industry, you actually want your Gross to be higher than reported 1099, as the cash which is not declared by the vendor as 1099, still needs to be reported. It is up to the individual, to then declare the earnings, and to justify it in an audit. An auditor will usually request bank statements for the year in question.
I have had audits, almost all of us that are self employed get audited at one time or another......be prepared as they say.
Hope this helps.
Re: What happens if you don't attach your 1099s but you claim the income?
in the way of an update, I would point out that StreaMates was acquired earlier this year by a much larger adult industry company ( Manwin ) with US operations. Thus you can count on SM sending out 1099's for money paid out to US citizen camgirls during 2012 ... which are likely to arrive in your mailbox by late february or early march 2013. As such, you probably don't want to file your 2012 tax return until late march or early april ... because if you file it prior to receiving and including the 1099 from SM it can lead to IRS questions and increase your odds of an audit.
Unfortunately, waiting for 1099's to arrive before filing your annual tax return also causes a situation where you can no longer fall under the Jan 31st deadline for filing 4th quarter 2012 estimated taxes as an integral part of your annual tax return. As such, you will now need to make a separate 4th quarter 2012 estimated tax voucher filing ( and cut a separate check covering the amount of 4th quarter estimated taxes owed to go along with that filing ) by the January 15th deadline.
Re: What happens if you don't attach your 1099s but you claim the income?
I am just baffled. Normally my husband and I file jointly, and we want to do that again this year. There's a hitch, I made a fair chunk of money working with Streamate in the beginning of the year and Mygirlfund since august. I have all of my bank statements and have totalled up what I made with every day of payment recorded in a neat little document.
My husband works on a military base (we live overseas) and they have tax people there who help you do it, but i am unsure of what to bring with me besides my condesed document. Do i need to bring bank statements too, or paypal info from when i bought supplies (webcam, props etc)? This year my husband wants to do it early.
Now all this about the 1099... what should I do? I plan to claim all of my income from both sites (which is much more money than what i made on sm alone). So should I not worry about that document then? I think thats what you are saying Mel but i want to be certain. :)
Re: What happens if you don't attach your 1099s but you claim the income?
^^^ You've definitely got a complicated US tax situation there Minxnymph. If the info you provided to SM, MGF etc. showed that you were a US citizen, then odds are that they will send you and the IRS 1099's reflecting your 2012 income. You then have to ( have someone ) prepare a joint US 1040 tax return, which will include hubby's income but also must include a Schedule C ( profit or loss from a business ) for your SM, MGF income etc. Thus you will also need to provide records of 'business expenses' ( webcam purchase, props, internet service monthly bills etc. ) to minimize your taxable business income level. And you'll also need to bring documentation of any other forms of income such as bank account interest, investment income etc.
Once that is all put together into a joint tax return, you MAY be eligible for the IRS 'foreign income exclusion'. But then again you may not. It depends on whether or not your 'tax home' is actually in Germany or still in the USA ( which is complicated by the fact that hubby works for the US Military and the fact that you may be residing on a US Military base ). And depending on where your 'tax home' is located, the German gov't may attempt to tax your income as well. Plus there's a question as to whether you and hubby would be better off filing separate tax returns, with your 'tax home' in Germany and his 'tax home' in the USA. So if there is a professional tax prep service available on the cheap, that understands the details of the 'tax home' stuff, definitely take advantage of it.
Re: What happens if you don't attach your 1099s but you claim the income?
My hero! You're very knowledgeable about this stuff XD
My tax home is the US, (bank account is with a us bank) so hopefully the Germans won't know or care about it. I'll definitely get all those docs in order and have them organized before we head to the tax center on the base. Luckily on the base they are used to some unusual circumstances and they do it for us for free so I'll milk them for as much help as they can give me.
Just reading your response lifted a weight off my shoulders. It's not looking to be as complicated as I thought it would be ^__^
Thanks so much Mel <3
Re: What happens if you don't attach your 1099s but you claim the income?
Quote:
You're very knowledgeable about this stuff XD
... that's because my own 'tax home' is now way south of the border. Fortunately, unlike the US, my 'adopted' country does not levee an income tax on money earned outside the country's borders.
Re: What happens if you don't attach your 1099s but you claim the income?
Quote:
Originally Posted by
Melonie
... that's because my own 'tax home' is now way south of the border. Fortunately, unlike the US, my 'adopted' country does not levee an income tax on money earned outside the country's borders.
Random question, but what happens if you live "south of the border" for only 6 months? Do you just not pay taxes on that 6 months worth of income?
Re: What happens if you don't attach your 1099s but you claim the income?
^^^ in order to claim the IRS 'foreign income exclusion', which does not levee US income taxes on the first ~$106,000 of money earned by a US citizen from sources outside the USA, you must remain outside the USA for 330 days of the year. Any less than that, and your foreign income is fully taxable.
Re: What happens if you don't attach your 1099s but you claim the income?
Quote:
Originally Posted by
Minxnymph
My tax home is the US, (bank account is with a us bank) so hopefully the Germans won't know or care about it.
In your case, there are two significant agreements at work. First, the Status of Forces Agreement between the U.S. and the Federal Republic of Germany. If memory serves, the SOF says that U.S. military and dependents who do not have German jobs are not subject to German income taxation. The second is the U.S.- German tax treaty which has a set of income allocation rules. Because of the complexity of those two agreements, you should definitely consult the base tax people to get your return done correctly.
HTH
Z