I've been wondering about something for quite some time, and would like to get it figured out for sure before tax time rolls around. I live in MI, and my only income right now is from camming. I work for Streamate, which doesn't send 1099's. I deposit all my earnings in my bank account. Now, from what I understand, I don't have to claim that income unless I need to show that I've earned income for the year (like to buy a car, rent something, etc.). Since my husband works and we file taxes together, I haven't been concerned with it.
However, I'm wondering if it would be smarter to form a business and pay taxes on my income, just in case. I haven't really heard of people on here doing this, but I know from being self-employed before (as my husband is now) that, at least in MI, we get RAPED with taxes, we pay twice, and it adds up to about 33%. If I were to form a business and be able to pay 15-20%, I'd feel better about the whole thing.
Has anyone done this? What do you recommend?
Thanks for any advice, I really appreciate this forum so much.



Reply With Quote

Bookmarks