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Thread: How do I do my taxes for January?

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    Default How do I do my taxes for January?

    I just started webcamming this month, and I've made a little over $300 due to the fact that I haven't been working much. I'm estimating that I won't make over $2,000 before the year is out. I've never filed taxes before, and definitely have never done them on my own. Can someone please tell me everything that I need to do, what I should expect to pay, and when they'll be due.

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    Banned Melonie's Avatar
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    Default Re: How do I do my taxes for January?

    Sometime in February or early March you will receive a copy of the 1099-misc form that your webcam host is required to send to the IRS. If the total 2008 earnings reported on this form exceed $700 you must file a tax return. After you receive the 1099-misc form from your webcam host you then need to file form 1040 plus Schedule C (profit or loss from a business) with the IRS by April 15th 2009. Technically you are also required to send the IRS a check for estimated taxes due on income earned from whenever you started webcamming in November through December 31st by January 15th 2009 along with a 1040-ES voucher form. The tax rate will be 15.3% Social Security plus medicare tax (a.k.a. self-employment tax) plus perhaps an additional 5% in income tax ( totalling something like $400 based on $2000 in webcam income ) . After the IRS receives your 1040 plus Schedule C and processes your tax return, you'll probably wind up getting $100 of that $400 refunded to you some time in June - but this check will come too late to help you make the next estimated tax payment on webcam income earned in January, February and March, which is also due on April 15th. If you estimated $2000 for six weeks worth of webcam earnings, then your first quarter 2009 earnings are probably in the ballpark of $4000 ... with the same 15.3% Social Security + medicaid tax applying but with the income tax rate rising to perhaps 8-10% i.e. a total of $900 or so being due on April 15th.

    If your state levees a separate income tax you will also need to fill out and send in the equivalent state tax forms and estimated state tax checks. Some states (and even some cities within those states) have substantial income tax rates ... where other states don't levee an income tax at all.
    Last edited by Melonie; 11-26-2008 at 01:22 PM.

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    Senior Member Butrcup98's Avatar
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    Default Re: How do I do my taxes for January?

    I pay an accountant. It costs me about $275 (filing joint with my husband), but it saves me many hours and headaches.

    You could always take your taxes to H&R Block. That will cost a lot less, but they are not as knowledgeable as an accountant.

    Or you could buy a tax program like taxcut. I can't remeber which version you should buy, but I'm sure it'll list the criteria on the back.

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    Default Re: How do I do my taxes for January?

    You may wish to wait a bit before filing your 2008 taxes. Normally getting them done as early as possible is desirable, but it looks like there will be more tax credits available to most Americans in the next stimulus package.

    We will definately know more the closer we get to inauguration day.


    Promote yourself and earn more money! This is a business that is owned by strippers for strippers. Let's make that money!


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    Default Re: How do I do my taxes for January?

    ^^^ she has to wait for the 1099 to arrive in any case ... which will typically be late February if not early March.

    As to enacting new 'low income' tax credits after the first of January 2009, and making them retroactive for 2008 tax returns, this isn't impossible but it will certainly be problematic. I suspect that this will be handled in a different way because the gov't cannot afford to 'wait' very long in regard to delayed receipts of tax money (as would be the case if all 2008 tax forms were ordered to be changed on January 21st 2009).

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    God/dess britneyireland's Avatar
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    Default Re: How do I do my taxes for January?

    Nooooo! HnR block doesn't understand our business and will not allow certain deductions!
    Rebecca Avalon







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