when you live in tax free income usa state do you get to keep all money?
Hi guys! am thinking of moving to Vegas or somewhere else where is no income tax zone but I am not sure how it works exactly...am a camgirl - does that mean I get to keep all my earnings? How does that work? Can enyone enlighten me thank you
Re: when you live in tax free income usa state do you get to keep all money?
I can only find info about tax-free zones on certain business start ups and the military. I doubt any state or country exempts cam girls from paying income tax.
EDIT: oh, interesting. There are such states, but they mostly add a higher sales tax to everything you buy and higher tax on your savings etc in order to get that money from you anyway. (that was just what I gathered from a brief scour of the first couple of pages of google)
Re: when you live in tax free income usa state do you get to keep all money?
ok but I have no clue how this works....anyone in tax free state can tell me more please? thank you
Re: when you live in tax free income usa state do you get to keep all money?
Yes, there are states with no income tax.
No, it does not mean you get to keep all your money.
Federal income taxes and state income taxes are two very different things. On the federal side, you'll pay income tax on a sliding scale (10-28% for most camgirls; look up 2016 federal income tax rates to get an idea of what you'd be paying) and, because you're self-employed, social security/medicare tax (~15%, even allowing for special deductions for self-employed people). I personally must withhold 40% of my income to be 'safe' as I have very few deductions (no kids, no tuition, etc). Camgirls, regardless of state income tax, are not exempt from these.
State income taxes are extra percentages paid on top of the federal taxes + social security + medicare, obviously. States (and even individual cities!) that do not charge income tax make up for this by having a higher sales tax on goods, raising their property taxes through the roof (hello Oregon!), or lobbying for other methods of making up for lost income.
Sure, you may get out of paying state income tax, but that doesn't mean you're necessarily coming out ahead. No such thing as a free lunch when it comes to the government getting their money out of you. They could take blood from a stone...
Re: when you live in tax free income usa state do you get to keep all money?
You'll still need to take 30% (unless you make a lot). I live in Texas.
Re: when you live in tax free income usa state do you get to keep all money?
Thank you girls! But I still don't understand...
lets say i live in las vegas and make for example a thousand a month (just an example )does that mean out of it I need to put aside something - and how much -and then by the end of year I have to pay? even in incometax free state? then what does incometaxfree mean anyway? nothing?
Re: when you live in tax free income usa state do you get to keep all money?
You should set aside something when it comes to the possibility of being taxed, which you would take 30%/35% to be safe. By not paying taxes living expenses go up resulting in paying more anyways..
"There are seven U.S. states with no income tax, while another two states have no income tax on wages but do tax interest and dividends an important consideration for retirees. The grass isn't always greener on the other side of the state line, though. These states still need money for government services, and they raise it through other means, namely sales taxes, property taxes, and other fees."
Re: when you live in tax free income usa state do you get to keep all money?
ok thank you
so 30 % wow that is a lot
Re: when you live in tax free income usa state do you get to keep all money?
Quote:
Originally Posted by
Dorothea
Thank you girls! But I still don't understand...
lets say i live in las vegas and make for example a thousand a month (just an example )does that mean out of it I need to put aside something - and how much -and then by the end of year I have to pay? even in incometax free state? then what does incometaxfree mean anyway? nothing?
You still pay FEDERAL income tax, you just don't pay state income tax.
Its a nice perk, but overall the savings aren't huge as its usually made up in other ways (excise taxes, sales taxes, property taxes, capital gains, higher fees on standard registrations and services). Don't skip your federal taxes, that will end badly. Depending on the state laws, some (or all) of your camming income as a self-employed business may be taxed as well, and you still may have some liability - employer witholding is exempt.