Taxes (for Sunshyn and other new dancers)
Sunshyne, IRS reporting works differently in each state. It's the most strict in CA. At The Hustler Club in SF, the bouncers would count how many dances I did each night. At the end of the night, both the manager and I would sign a receipt stating how much I made minus my stage fees. Also, the cash I received from funny money was documented and I will receive a IRS form 1099 at the end of the year.
Now, if you work at an all cash club, or a club that doesn't report anything, it is your responsibility to record the amount of money you make each night and pay taxes on it. I use the monthly calendar in my day-planner to record how much money I make, and the weekly planner pages to record how much I tip out. That way, at the end of the year, I have all my records in one spot....(and the receipts stashed in a box just in case I get audited)
You need to use a Schedule C and file as an independent contractor. I would hire an accountant if it's your first time. I DO NOT recommend just not paying anything. Taxes affect your credit score and credit companies use your debt-to-income ratio to determine the APR of your credit cards.
I found that out the hard way: if you have a lot of credit card debt, and a low income (determined by your yearly tax filings) the credit card companies will increase your APR. It was a shock to me that the 14% APR card I had for years suddenly became 29.99%!!!
Britney
Re: Taxes (for Sunshyn and other new dancers)
How much of a percentage of your money goes to the IRS for taxes?
Re: Taxes (for Sunshyn and other new dancers)
Generally, if a dancer is 'grossing' $2000 a week in an upscale club or chain club which is reporting amounts they have paid out to the dancer for cashed in funny money tips and for the dancer's share of private dances she did, and if she's working as a "private contractor", and she doesn't have major write-offs such as home mortgage interest or property taxes or plastic surgery deductions it breaks down something like this in New York at least
total annual gross income $100,000
less federal income tax at 25%
less state income tax at 7%less self employment tax at 15%
credit back part of self employment tax as deduction -7%
= total tax rate 40% and total taxes due $40,000
Re: Taxes (for Sunshyn and other new dancers)
My gross pay $75,000
Paid back 27%, FLorida. (last year.) We have no state income tax in florida, so thats federal. Pamela