All the information in this thread is really helpful! thank you to everyone! :D
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All the information in this thread is really helpful! thank you to everyone! :D
Are there any european girl who pay taxes?
^^I sure hope so ;)
U.S. ladies: remember your 3rd quarter estimated tax payment is due on MONDAY (the 16th). Because I'm a glutton for punishment... feel free to PM me if you get stuck & I will try to help. I'm not a CPA though, so be forewarned :)
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The reason I'm asking is because I think it's really more complicated in my country. From what I read on the previous page it says:
But what happens in Europe? I don't think the US based sites are sending any reports to all the countries... I still have no idea if I can and how to pay taxes on webcam earnings. So if there are european girls who do it it'll be helpful to know how they do it.
As covered in many other threads, this is not a 'free choice'. Besides the FAFSA / IRS edict regarding age 24 for college students, there is also an issue of the 51% support test. If you already lived with your parents or in college housing for several months this year, if you are living with a 'roommate' for the rest of this year, and if your 2014 income level will be far lower than your parents' 2014 income level, your parents will be 'forced' to claim you as a dependent and you will be 'forced' to file your own tax return without being able to claim a personal exemption for yourself. This will indeed increase the effective tax rate that applies to your own 2014 income.Quote:
I do my own taxes and my parents claim me as a dependent. They would not have a problem with me claiming myself
If you also have W2 'employee' income, your effective tax rate will be even higher since the combined amount of your 'employee' income and your camgirl 'business' income will be higher. This will probably mean that the estimated taxes withheld from paychecks by your W2 'employer' will be insufficient to cover the actual taxes due on that income.
Edited
No either your parents can report your income on their joint tax return with you not filing a separate tax return ( I think this is limited to $8,000 in 'dependent' earnings max ), or your parents do NOT report your income on their joint tax return and you file your own independent tax return ( I think this is required for >$8,000 in 'dependent' earnings ). In the second case your parents must still claim you as their dependent on their joint tax return ( which gives them ~$4,000 worth of exemptions ) and you cannot claim yourself on your own independent tax return ( which denies you ~$4,000 worth of exemptions ).
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I don't think there are other people from my country here and I don't want to share it. It's not the UK. If someone knows or wants to talk about can send me a pm.
I missed who had the issue with this but as my vanilla life requires I remain very up to date about tax law, here is your solution.....if you are still a dependent on your parent's taxes and DON'T want to tell them about camming and your 1099. You will "allow" your parent's to claim you AND file your own personal return (1040 + Sch C) for your 1099 and any other vanilla jobs you may have had over the year. When you file you WILL NOT claim your own exemption. As your parent's already have claimed that. Your parent's really don't need to actually know your income to file their taxes and claim you as long as you are a full time student and that the income is earned and not "interest" or trust based. Your taxable income will be slightly higher bc you will not get a personal exemption but this is a small price to pay to ensure your privacy from your parents. Plus you can make up for that in business deductions, cuz there are actually a TON for camming/dancing/modeling.
Anyone that ever needs more specific advice can PM me
However, I don't recommend doing this if you have a FAFSA based on your parent's taxes.(too messy) And an audit is highly unlikely as long as you are paying the taxes on all the income reported to them! IRS does not have time to audit student dependency's unless it comes up with another issue.
^^^ there is a big exception to your assertion in cases where the girl is a college student and filing for FAFSA grant / loan money. In that case, the parents must report 'total household income' ... which must include ALL of the student camgirl's income in addition to the parents' income. Since FAFSA and the IRS share information, there is no way to 'back door' this issue. If a college student camgirl fails to inform her parents of her total income, and the parents file a FAFSA student grant / loan application that does not include the camgirl's total income, an IRS cross-check against tax returns will quickly turn up the discrepancy. This in turn is likely to result in both the parents and the college student camgirl being audited, as well as potential 'clawback' of student grant money that was previously paid out based on a 'fraudulently' low figure being provided for 'total household income'.
sigh....i know. I realized after i posted that it wouldn't be a good idea with FAFSA (i forget how young a lot of girls here are). I tried to edit right away but my internet quit and it took me freaking 20 minutes to get it going again. But thanks for typing out the reason...I was too lazy to explain LOL
going back to the house wives rule do wigs count as a tax wright off or no? i would think so since not everyone buys wigs but some do for fashion / cosplays etc. but i wanted to be sure im not fucking myself over before i drop a few 100 on them and colored contacts ? do fake eyelahses count as a "vanity" item meaning not tax deductible ?
also computer parts normally computer upgrades are wright offs but i got a PSU and case with cold cathode lights in them i wouldnt think i could because theyre kindy "flashy" (pun intended lol) i do have a spare computer that i could say is for personal use and i could say i got the light up stuff because my niche is I'm a geek goddess (witch is true) and i got them to display on cam if i do get audited. like i could say i have it set up so u can see the lights inside from behind me and i have my 25 foot HDMI (witch i also wrote off) so i can set it up to do that -(case behind me monitor in the front )
i know i asked this already but bill deduction- should i wright off 1/2 or 1/4 of the total bills for internet and elec? because my roommate and i split things and im the only that works at home. to me it would make sense if i wright off 1/4 because i use the internet and the cable half the time im home for camming and the other half for personal stuff but if i can get away with half of course i'd like too but i dont want to be audited...
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About the 'housewife test', the IRS doctrine is that anything purchased for supposed business reasons, that is also purchased by 'housewives' who have absolutely no business reason for doing so, is subject to potentially being disallowed as a business expense tax deduction. Thus department store wigs and cosmetics may attract audit attention.
As to writing off a fraction of ISP costs as a business expense, by sharing an internet connection with a 'civilian' roommate, you are automatically creating a 50% business use restriction. Claiming half of that half as a business expense is logical, but the IRS may disagree with that logic given that the vast majority of ISP use is personal. This gets even muddier if cable TV and/or phone service is bundled with cable modem ISP service under a single bill.
Computer hardware more or less follows similar logic. A camera is essentially a no-brainer as a business expense deduction. So is a dedicated computer.
Should we be taking 40% out instead of 30% my roommates taxes got raised a few months ago and he gets more taxes out of his paycheck taken out now compared to when I first moved in and i read in another thread that another camgirl takes out 40%.
This depends on what your total 2013 annual income will be, your filing status ( single vs married, kids ? ), whether or not you are a 'dependent' college student, the state and local income tax rates that apply where you live, whether or not you are going to have to pay the new ObamaCare tax penalty for failure to buy 'qualified' health insurance etc.Quote:
Should we be taking 40% out instead of 30% my roommates taxes got raised a few months ago and he gets more taxes out of his paycheck taken out now compared to when I first moved in and i read in another thread that another camgirl takes out 40%.
There were certain bills made a few years ago to lessen the tax burden and create "more disposable income" to get us out of the recession. A lot of those provisions expired at different times throughout this year and last year. He's paying more, but he's actually paying what he would have been paying if the provisions weren't put into place. If that makes any sense. Example, I believe that an employee contributes around 8% to social security. When the provision was in place, they paid 6%. (Not sure those numbers are completely accurate, it's been a while since I was an employee) Once the provision expired they went back to paying 8%.
Since we don't have employers, we take the entire tax burden ourselves. So we didn't get that extra 2% during the 4 or 5 years the provision was good for.
I would assume your taxes didn't go up unless your state taxes changed or you moved up a tax bracket. Though it never hurts to put aside extra.
The Social Security tax rate change applies to independent contractors as well as 'employees'. Where the 'employee' SSI tax rate went from 5.65% to 7.65%, the independent contractor SSI tax rate ( a.k.a. 'self-employment' tax ) went from 13.3% to 15.3% on the first of January 2013. In either case this is a 2% tax increase.
For both 'employees' and independent contractors, a new ObamaCare IRS tax penalty will kick in ... payable by April 15th 2014 ... if the person does not receive 'qualified' health insurance coverage through an employer and does not choose to purchase 'qualified' health insurance through the just opening Public Health Insurance exchanges. Generally speaking, if you do not have 'qualified' health insurance coverage by this coming January, a 1% additional ObamaCare tax penalty rate will be added to the tax bill due next April 15th. I emphasize 'qualified' because the 'catastrophic only' high deductible low monthly premium health insurance that has traditionally been popular with young, single dancers and camgirls does not 'qualify' ... thus even if you have / continue to purchase this sort of low cost limited coverage health insurance you will still be required to pay the new 1% ObamaCare tax penalty.
There are a bunch of other tax changes which apply to 2013 income and also to 2013 deductions. However, most of these don't apply to average dancers or camgirls who don't have a bunch of 'unearned' investment income, who don't have enough mortgage interest or out-of-pocket health care expenses to itemize deductions, etc.
Also note that the 3% worth of known tax increases above means 3% of adjusted gross income, not 3% of last year's tax bill.
Are you sure about that? The IRS says:
Quote:
The individual shared responsibility provision goes into effect in 2014. You will not have to account for coverage or exemptions or to make any payments until you file your 2014 federal income tax return in 2015.
^^^ the so-called 'shared responsibility provision' was redefined by the US Supreme Court to be a 'tax penalty'.
However, in regard to your specific question, the Washington Post answers it as follows ...
(snip)"When will the penalties apply? For the 2013 tax year or 2014?
This is probably the easiest question to answer: The tax penalty for not carrying insurance begins with the 2014 tax year. Not carrying any insurance in 2013? No problem, there won't be any fine. But come 2014, most Americans will have to carry health insurance coverage or pay a $95 tax penalty [ or 1% of 2014 adjusted gross income, whichever is greater - sic ]. This tax penalty would be assessed in 2015, likely deducted from a tax refund.
Let's say things get hectic at the start of the year and, due to one reason or another, someone like Frioli forgets to buy insurance right away. Shee gets around to it later in January, or maybe in February.
Even in a situation like that, she would most likely not pay a fine. The health law's mandate makes an exception for short lapses in coverage, which are defined as a period of less than three months. "Thus, the penalty does not apply until a taxpayer goes three consecutive months without adequate coverage," the CCH guide to the Affordable Care Act explains."(snip)
Thus for independent contractor dancers and camgirls, the tax penalty for failure to purchase 'qualifying' health insurance coverage becomes due when 3 months worth of 2014 have passed without having such coverage i.e. April 1st. As such, the first quarter 2014 estimated tax payment due April 15th needs to include the additional amount of estimated taxes due to pay the new Obamacare tax penalty, on top of the amount of estimated taxes due to cover SSI and federal income taxes on their Jan 1 2014 through April 1 2014 dancing or camming income.
For 'employees' the estimated tax issue does not exist, thus actual payment of the tax penalty would finally become 'real' when their 2014 annual tax return must be filed in the spring of 2015. It is assumed that, due to 'standard' employer tax withholding from employee paychecks throughout 2014, that the additional amount due for the Obamacare tax penalty will have already been covered, thus the practical effect for 'employees' will merely be a smaller tax refund in the spring of 2015.
Sorry that I wasn't crystal clear about the different 'real world' implications for independent contractors versus 'employees' in my earlier post. In point of fact, both will 'owe' the Obamacare tax penalty by April 1st 2014 if they have not purchased 'qualified' health insurance coverage by March 31st . However, actual out of pocket payment timing for the Obamacare tax penalty is different due to the different methods of estimated tax withholding.
For what it's worth I would also point out that the new Obamacare tax penalty applying to the first quarter estimated tax payments for self-employed independent contractor dancers and camgirls can potentially provide a new means for the IRS to assess 'under-withholding' penalties. Such penalties can apply when non-first year in business dancers and camgirls' estimated tax payments fall more than 10% below the actual amount of estimated taxes due. Since the entire year's new Obamacare tax penalty must be paid along with first quarter 2014 estimated taxes by April 15th 2014, this increases the probability that an individual independent contractor self-employed dancer's or camgirl's first quarter estimated tax payment will fall short of the minus 10% 'under-withholding' penalty threshold. With some 16,000 new IRS agents having recently been brought on-board for the specific purpose of enforcing Obamacare tax provisions, it would not be at all surprising to find that a great deal of additional IRS scrutiny will be devoted to first quarter 2014 estimated tax payments ( and especially to the lack thereof ) by self-employed persons.
For me, there's such a huge benefit of being a single mom with absolutely no support--financially or otherwise--so I have a job that I can do while he sleeps, is in school, etc. I don't have to take the crap I got from a large paying corporate job when my kid was sick, had a holiday show, etc. I don't have to force myself in when I genuinely don't feel good. I have no commute. On and on. Every job has it's big downsides--that's why it's work. There are good days and bad, but overall, I find that my clients are so much less demanding than even the "mainstream" clients I have/had once I left corporate to open my own "mainstream" agency, where I was literally on-call all the time, and never could take vacations at any time (vs. getting flack for trying to be gone for a few days)...
So, is it the highest paying job I can get? Are there corporate health benefits (although those have seemed to evaporate with the current political situation)? Is there a stigma, and do I have to "hide" stuff? Yep. But for now, it's the job for me, and I DO have a "five year" plan for when my son is old enough for me to work a little more mainstream if I want, and if our crazy economy supports that. It is a personal decision for each of us, and I have respect for EACH opinion posted!