I did MFC for about a month. All I got was a deposit into my account. Do they take taxes out before they deposit the money or do you owe at the end of the year? How does this work? Thanks, ladies!
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I did MFC for about a month. All I got was a deposit into my account. Do they take taxes out before they deposit the money or do you owe at the end of the year? How does this work? Thanks, ladies!
No, they do not withhold. In February or March you will receive a form 1099 telling what they paid you. You need to file your quarterly estimated tax returns and a final return next year for this year. You will report your camming income on Schedule C along with your ordinary and necessary business expenses. You will also have to pay your self employment taxes which you figure using form SE. For your first year, you will not face penalties for failing to file your quarterly reports, but next year you will. Still, it's better to get your quarterlies in this year, so you don't have a big tax bill next year.
HTH
Z
Thank you! I only got two paychecks and they weren't very high because I barely did it. It doesn't even amount to a net worth of 1K. I won't be filing next year with them at all. So, it's okay if I don't report that small amount or pay what I owe? Just because it's a small amount and I didn't keep doing it and don't plan on continuing to do it. I appreciate your info! I'll do whatever I have to, I just don't want to do a self employment form for two small paychecks I received ha.
if it is $400 or less for the whole year then u dont have to file it but if it is over then u do have to.
Actually its $600, my husband has subcontractors for his business, we claim it, but I am not required to send a 1099 unless they made over $600 :)
nope it is $400 now, it used to be $600 but they changed the tax law
I just called my accountants office on this one as it really would effect me in many ways, they never heard of it changing, waiting on the return call from the accountant that does mine every year... Okay spent 2 hrs on hold with the irs and got no where haha so here it is from their site... It does state $600 and the page was updated aug of 2012
http://www.irs.gov/Businesses/Small-...nt-Contractors
hmmm.... i have heard from many accountants plus many other camgirls that it is $400 now. perhaps i guess it is $600?
^^^ the $400 change is part of the new ObamaCare law.