Results 1 to 22 of 22

Thread: Receiving a 1099

  1. #1
    Featured Member paintgoddess's Avatar
    Joined
    Feb 2005
    Location
    Atlanta, GA
    Posts
    1,164
    Thanks
    0
    Thanked 46 Times in 27 Posts

    Default Receiving a 1099

    My club just recently handed out 1099's to all dancers. The amount shown is only about 15% of what I actually made last year. The housemom, when asked questions like "does this mean I have to file taxes??" just says a canned answer: "yes, but it's real easy. Most girls get money back because they don't make enough to pay taxes." I'm betting that the "bogus" number on my 1099 was generated simply from credit card VIP room sales attributed to my stage name since all cash sales will remain unregistered on the books.

    Will it raise IRS suspicion of the club or other dancers if I claim all of my income? We're talking about a HUGE gap between what is on my 1099 and what I actually netted after tips and fees.

    Is anyone familiar with this scenario? My last club chose to leave us on our own to do the right thing. The 1099's handed out this particular club force every dancer to make a choice: Ignore the piece of paper, file and claim only what is on the paper, or file the 1099 as well as additional income. I'll fall into the third category. I wouldn't be surprised in the least if I'm the only one out of about 200.

    BTW, I plan on claiming every dollar as I have done for the last two years. I want to buy a home one day without fear of the IRS wondering where I got all of my money.
    Quote Originally Posted by Lysondra View Post
    Strippers are like ninjas. You never know how many there are or if the person next to you is one.
    Quote Originally Posted by Emily View Post
    ...I assume you probably don't want to deal with pervs, and the guys that just don't give a fuck about money are like unicorns...
    Quote Originally Posted by Sinder View Post
    I know I have said it before, and I'll say it again.... THE VAGINA IS NOT A CLOWN CAR!


  2. #2
    Banned
    Joined
    Feb 2007
    Location
    ATX
    Posts
    3,502
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Receiving a 1099

    Screw them if they're going to cheat. Look out for #1!

  3. #3
    buffie06
    Guest

    Default Re: Receiving a 1099

    yep, who cares if they get put on the radar? You take care of yourself, and it sounds as if your doing fine.

  4. #4
    God/dess
    Joined
    Sep 2002
    Posts
    8,031
    Thanks
    0
    Thanked 143 Times in 42 Posts

    Default Re: Receiving a 1099

    It's not going to get the club in trouble. They are doing what they are supposed to and reporting the cash they pay you from customers' credit card charges. They're giving you a 1099, not a W-2, which is what you'd get if you were an employee. If other dancers are only reporting the income that's on the 1099s, that's their problem, not the club's.

    I have 1099s from several different clubs that issue them for credit card charges, etc, and it just goes in with the other income I am reporting. No big deal.

  5. #5
    Banned
    Joined
    Nov 2006
    Location
    in the middle of a cornfield
    Posts
    5,119
    Thanks
    2,693
    Thanked 2,988 Times in 1,098 Posts
    My Mood
    Fine

    Default Re: Receiving a 1099

    This is my second year as an independent contractor. We get 1099's also. I just did my taxes yesterday and it turns out that since I don't get a paycheck, the IRS is unable to take out taxes. So, they took out over $1000 from my refund to cover the taxes. My boss told us all that not giving us paychecks and making us independent contractors, would make it better come tax time. Um, no.

  6. #6
    God/dess britneyireland's Avatar
    Joined
    Jan 2002
    Location
    Dallas
    Posts
    2,568
    Thanks
    283
    Thanked 602 Times in 340 Posts
    Blog Entries
    1
    My Mood
    Inspired

    Default Re: Receiving a 1099

    It does because you can deduct things that an employee cannot (mileage on your car, tax on vehicle registration, costs of travel, costumes, makeup, nails, tanning, computer, internet access, office space) if you were an employee you would not be able to deduct these things.
    Rebecca Avalon







  7. #7
    Banned
    Joined
    Nov 2006
    Location
    in the middle of a cornfield
    Posts
    5,119
    Thanks
    2,693
    Thanked 2,988 Times in 1,098 Posts
    My Mood
    Fine

    Default Re: Receiving a 1099

    Quote Originally Posted by britneyireland View Post
    It does because you can deduct things that an employee cannot (mileage on your car, tax on vehicle registration, costs of travel, costumes, makeup, nails, tanning, computer, internet access, office space) if you were an employee you would not be able to deduct these things.

    That's true. I just don't like that they take all those taxes out at years end, ya know? My mom told me to pay taxes throughout the year. Like send the IRS money every month so that by the time I file taxes, they won't take from my refund. Thing is, they're still getting that money just not all at once. I just really needed a big refund this year. I should be getting like $2400 back but I'm greedy! I want like $3500
    Yes, I know I'm ridiculous!

  8. #8
    God/dess britneyireland's Avatar
    Joined
    Jan 2002
    Location
    Dallas
    Posts
    2,568
    Thanks
    283
    Thanked 602 Times in 340 Posts
    Blog Entries
    1
    My Mood
    Inspired

    Default Re: Receiving a 1099

    Yes, but you could invest that money during the year and earn interest on it rather than giving it to the govt to so THEY can earn interest on it.
    Rebecca Avalon







  9. #9
    PhillyDancer1982
    Guest

    Default Re: Receiving a 1099

    Britneyireland, you stole the words out of my mouth BOTH times you posted lol. I agree with you completely. One of the things that I LOVED about being an independent contractor, was being able to write off so many expenses...healthcare, gas, outfits, etc. Now that I have a full-time "real" job and I receive a W-2 as a cocktail waitress, I can't take so many deductions.

    I also agree with you about it being better to pay the money all at once at the end of the year, instead of paying it throughout the year. That way, you can invest the money. And if you don't want to worry about having to save up a big lump sum come tax time, you can always put aside tips from each night's earnings throughout the year. It all comes down to self-discipline/budgeting, I believe.

  10. #10
    Banned
    Joined
    Nov 2006
    Location
    in the middle of a cornfield
    Posts
    5,119
    Thanks
    2,693
    Thanked 2,988 Times in 1,098 Posts
    My Mood
    Fine

    Default Re: Receiving a 1099

    Quote Originally Posted by PhillyDancer1982 View Post
    Britneyireland, you stole the words out of my mouth BOTH times you posted lol. I agree with you completely. One of the things that I LOVED about being an independent contractor, was being able to write off so many expenses...healthcare, gas, outfits, etc. Now that I have a full-time "real" job and I receive a W-2 as a cocktail waitress, I can't take so many deductions.

    I also agree with you about it being better to pay the money all at once at the end of the year, instead of paying it throughout the year. That way, you can invest the money. And if you don't want to worry about having to save up a big lump sum come tax time, you can always put aside tips from each night's earnings throughout the year. It all comes down to self-discipline/budgeting, I believe.




    Unfortunately I have none of that! I can't even save money now! Not like I make any lately to save anyways. I guess I just have to deal with having them take out the chunk at the end of the year.

  11. #11
    God/dess
    Joined
    Jul 2005
    Posts
    4,704
    Thanks
    3
    Thanked 8 Times in 8 Posts

    Default Re: Receiving a 1099

    I'm off the radar at my club. No one gets W-2s or 1099s or anything. None of the staff, management, dancers, no one. Everyone gets paid in cash.

  12. #12
    Featured Member paintgoddess's Avatar
    Joined
    Feb 2005
    Location
    Atlanta, GA
    Posts
    1,164
    Thanks
    0
    Thanked 46 Times in 27 Posts

    Default Re: Receiving a 1099

    Quote Originally Posted by kaiarose View Post
    My boss told us all that not giving us paychecks and making us independent contractors, would make it better come tax time. Um, no.
    He didn't say you wouldn't owe on your taxes! However, if you claim every dollar, you will have more deductions than an actual employee. So yes, it is better. Just keep track of your receipts this year and let an accountant deal with it next year. It helps immensely. Not every one gets money back. People are trained to think that because not many people know how it works. Hell, I PAY money four times a year!

    Susan--thanks for your reply. I didn't know how common the 1099 scenario was, nor was I sure that it was from credit card sales.
    Quote Originally Posted by Lysondra View Post
    Strippers are like ninjas. You never know how many there are or if the person next to you is one.
    Quote Originally Posted by Emily View Post
    ...I assume you probably don't want to deal with pervs, and the guys that just don't give a fuck about money are like unicorns...
    Quote Originally Posted by Sinder View Post
    I know I have said it before, and I'll say it again.... THE VAGINA IS NOT A CLOWN CAR!


  13. #13
    God/dess
    Joined
    Sep 2002
    Posts
    8,031
    Thanks
    0
    Thanked 143 Times in 42 Posts

    Default Re: Receiving a 1099

    I think it's pretty common in clubs that use credit cards. I am not sure what the tax advantage is to them -- perhaps those CC advances have to be reported as club income. My 1099s are a combination of VIP sales and lump sum paychecks from booking clubs that give you base pay for a week. I also get them from other, nonstripping work where I'm also an IC. The vast majority of what I made was still in cash directly from customers, though.

  14. #14
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: Receiving a 1099

    Quote Originally Posted by kaiarose View Post
    [/b]

    Unfortunately I have none of that! I can't even save money now! Not like I make any lately to save anyways. I guess I just have to deal with having them take out the chunk at the end of the year.
    You cannot save money but you can afford to over-pay the IRS?

    I mean a refund means you over-paid your taxes. It's not a rebate or anything - you just gave them to much money.

  15. #15
    PhillyDancer1982
    Guest

    Default Re: Receiving a 1099

    Quote Originally Posted by Deogol View Post
    You cannot save money but you can afford to over-pay the IRS?

    I mean a refund means you over-paid your taxes. It's not a rebate or anything - you just gave them to much money.
    Yeah that is why I do not care if I don't get a tax refund. I'd rather claim more allowances on my W-4 and get no refund at the end of the year, than claim 0 allowances, have a bigger % of money taken out of each week's paycheck, and get a refund.

  16. #16
    buffie06
    Guest

    Default Re: Receiving a 1099

    exactly^^ I don't get why so many people think the government just gives people these "refunds" and they didn't have to do anything for it. That is YOUR money! Regardless of owing or getting a refund you still pay the same amount.

  17. #17
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Receiving a 1099

    I don't get why so many people think the government just gives people these "refunds" and they didn't have to do anything for it. That is YOUR money!
    Well, this isn't exactly true. Things like low income tax credits, child care tax credits, hybrid vehicle tax credits, production tax credits (from windpower, ethanol etc.) all allow the IRS to pay more money back to a particular taxpayer than was withheld in the first place ! This of course means that the source of the tax """refund""" money to this individual taxpayer was actually some other taxpayer.

  18. #18
    Banned
    Joined
    Nov 2006
    Location
    in the middle of a cornfield
    Posts
    5,119
    Thanks
    2,693
    Thanked 2,988 Times in 1,098 Posts
    My Mood
    Fine

    Default Re: Receiving a 1099

    Quote Originally Posted by Deogol View Post
    You cannot save money but you can afford to over-pay the IRS?

    I mean a refund means you over-paid your taxes. It's not a rebate or anything - you just gave them to much money.

    There was no over-paying to the IRS. Here's how it works with me, at the beginning of the year the boss makes us fill out our 1099's. I claim my daughter on it and I claim 0 wherever need be. We still pay house fees and claim our funny money. At the beginning of the next year we get that paperwork that says how much I made in tips etc...Apparently this year I made $9000 and some odd cents. When I went to file my taxes, I took all my receipts, etc...The accountant told me that because I am technically my own business, I have to pay some sort of fee. Which amounted to $1000. I never overpaid anyone.

  19. #19
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Receiving a 1099

    ^^^ the 'fee' you refer to is self-employment tax i.e. the equivalent of both the employer's and employee's share of Social Security / Medicare tax.


    I would also point out that, as part of their recent computer upgrade, IRS computers now typically run comparisons of tax returns from different taxpayers who have all been paid by the same 'source'. Thus it's distinctly possible that the IRS computers may decide to run a comparison of all of the dancers that received 1099's from a particular club. Obviously the first thing the comparison will attempt to do is FIND tax returns from all of the girls who received 1099's from that particular club. The next thing the comparison will attempt to do is to compare reported 1099 amounts, to compare total reported incomes etc.

    Thus it is distinctly possible that if a particular club has sent out 1099's to 50 different dancers, and if 49 of those dancers have reported incomes in the $20k ballpark, but the 50th dancer has reported a far higher income level, the it is probable that it will in fact be the 50th dancer's tax return that will attract additional IRS attention i.e. a possible audit. Now if the 50th dancer has reported her total income correctly, and if the 50th dancer's lifestyle, bank account balances, spending habits etc. all seem to jive with the amount of total income that she has reported on her tax return, then an IRS audit will probably go relatively smoothly for the 50th dancer.

    However, once the 50th dancer's tax return has been reviewed and appears legitimate, the IRS is then going to start to wonder what's going on with the tax returns from the other 49 dancers who reported vastly lower income levels while essentially doing the same work as the 50th dancer. This could possibly lead to a much wider IRS investigation. And this year the possibility is higher than ever, because the IRS has established a new special tax enforcement unit that is targeted towards adult businesses (and yes the IRS considers strip clubs to be adult businesses in the same category as adult bookstores, adult websites, escort services etc.)
    ~
    Last edited by Melonie; 02-07-2008 at 04:16 AM.

  20. #20
    Banned Katrine's Avatar
    Joined
    Nov 2003
    Posts
    13,855
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Receiving a 1099

    You can still get a good estimated idea of what you have access to in terms of credits and deductions at the beginning of the year. IRS publishes the info.

    As an IC, this is where quarterly est. taxes come in handy. If you track your income expenses by quarter, it is a lot less overwhelming. Plus, you can factor in 1/4 year worth of above credits and deductions. Thus, you can estimate with a fair amount of accuracy how much to give them without giving too much. Opportunity cost is for you and the interest you receive on the money you keep.

    However, its not an exact science. Even the IRS understands this and doesn't penalize you unless you really withhold too little. $1,000 is the threshold I estimate. I am not a CPA though, and have no professional training on if this is accurate or not.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

    Quote Originally Posted by Mia M
    If a cupcake was tossed at me... well, I'd only be upset if it missed my mouth

  21. #21
    Newbie
    Joined
    Feb 2005
    Posts
    6
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Receiving a 1099

    My club did not give us 1099's b/c they said that since they do not give us any money (we pay them) that we were not eligible for them. I have no idea what I made in 2007. This is the first year I have been an independent contractor. I am dreading going to an accountant especially since I have no money saved for taxes.

  22. #22
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Re: Receiving a 1099

    Quote Originally Posted by Maria1984 View Post
    My club did not give us 1099's b/c they said that since they do not give us any money (we pay them) that we were not eligible for them. I have no idea what I made in 2007. This is the first year I have been an independent contractor. I am dreading going to an accountant especially since I have no money saved for taxes.
    Prepare to become a republican in context to being a business owner. First you will discover you are considered "rich" and then they are going to take your money away by the nickel and the dime. You will hear of government agencies you never knew existed and they will have their hands out.

Similar Threads

  1. Replies: 18
    Last Post: 11-19-2011, 08:41 PM
  2. paypal receiving limit maxed out HELP
    By starrgirl81 in forum Other Work
    Replies: 6
    Last Post: 03-17-2011, 02:08 PM
  3. stimulus check, receiving?
    By anomar in forum Dollar Den
    Replies: 19
    Last Post: 04-18-2008, 01:07 PM
  4. Receiving stage tips
    By Lolita86 in forum Newbie Board
    Replies: 7
    Last Post: 10-16-2006, 05:18 PM
  5. are any dancers receiving 1099's ?
    By Melonie in forum Dollar Den
    Replies: 15
    Last Post: 01-26-2004, 11:04 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •