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Last edited by sammii; 03-11-2014 at 01:57 PM.
ur not even going to owe taxes for that
but it doesn't matter if u delete ur profile..the site will still always have a record of your earnings.
"Achieving success is a challenge but so is struggling so you may as well choose success."





In point of fact, the cam site is going to send a 1099 for any amount that you earned over $400 to the IRS independently. The IRS computers will then try and match up that 1099 amount and the SS# of the person it was paid to with a line item entry for the same amount on the Schedule C attached to the tax return filed by the person with that SS#. This is one of the unfortunate bits of being an independent contractor business i.e. that the 'payers' don't have to send out 1099's until the end of february, such that the filers are at risk of attracting IRS attention if their tax returns don't include corresponding entries.
From a legal standpoint, you're fine by reporting this income on your Schedule C in any way you want. But if you don't include supporting detail showing 1099 payer names matching 1099 paid amounts, it may lead to IRS attention / questions.





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Last edited by sammii; 01-09-2014 at 05:05 PM.





^^^ yes via the 'supporting detail' function of TurboTax's Schedule C. However, if you report a lesser amount than the webcam host reports on its 1099, it will still raise IRS eyebrows.





Do cam sites that are run outside the US have to send 1099s to the IRS for their business? I know they don't send them to models. I always report my income anyway because I'm paranoid, but I am curious if sites like streamate that are outside the US have to do this? And if they do, why don't they send 1099s to US models? I know MFC sends them to us but I believe that's because they operate inside the US.
xoxo ~ Sarah





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Last edited by sammii; 01-09-2014 at 05:05 PM.





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Last edited by sammii; 01-09-2014 at 05:06 PM.



Wait so SM doesn't send 1099? I just started tracking my income last week (because I was lazy) and have no idea what y income has been over the last 4 months. I know you can go back through the weeks on the "my income" section but I thought businesses were required to send 1099. Should I just go back per week and add them up or is there a way to find the total?





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Last edited by sammii; 01-09-2014 at 05:06 PM.



Yeah me either. I went to go check and it doesn't let you go past the current month. They must have some kind of procedure for it because I'm sure a lot of girls file their taxes. I'll message them and let you know what they say =)





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Last edited by sammii; 01-09-2014 at 05:06 PM.



I have daily pay so it doesnt show payment history =/





You may not owe taxes (as it is under the minimum earning limit) but you still have to declare it so that they can confirm this. Otherwise you will have to pay penalties for not declaring income.
Like the OP said in a follow up post -totally not worth the risk to not declare it.
OP - if it helps, think of it like a vanilla job. If you were working at a restaurant and quit, you would still be able to file taxes on your income, even though your employee file at the restaurant would have been closed when you left.
I take cash, debit or credit. I just don't take shit.
OnlyFans.com/ScarlettMoore
Follow me on twitter! @MissScarlettM
Hear me ramble about random things:



"Revenue generated on streamate is your responsibility - we are not a US
company so we do not report your earnings to the IRS. However, we are
also not tax advisors, We would recommend you speak to a tax
professional to see what should be done with earnings from a NON US company."
Umm...ok there's still no reason why they can't tell me my annual earnings. I know they have it recorded I doubt they cant just pull it up. I'm not asking for a tax form just how much I made in 2011.
I was looking into this myself and found this info from the IRS, on page 7 they have info on how much you have to make before you're required to file.
http://www.irs.gov/pub/irs-pdf/i1040.pdf





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Last edited by sammii; 01-09-2014 at 05:07 PM.





Note that webcam girls are considered to be self-employed sole proprietor businesses, not 'employees', thus IRS rules are different ...info from the IRS, on page 7 they have info on how much you have to make before you're required to file
(snip)"If a business pays you $600.00 or more in a year for your consulting [ i.e. webcam ] fees, they have to report it to the IRS on form 1099-MISC. You'll receive a copy of the 1099-MISC too. Don't throw it away; you'll need to report that income on your return.
Since this is likely your first time filing a tax return that includes your income from self employment, you'll need to get a Schedule C (or C-EZ) and Schedule SE to file with your 1040. You will use the Schedule C to report all the gross receipts from your side business. You need to report all of the income you received from your consulting [ webcam ], not just those amounts for which you received a 1099-MISC. Even though a business needs to pay you a minimum of $600 before they are required to submit a 1099-MISC, you are required to report all the income you receive from all sources, even if it is less than $600.
You'll also report your deductible business expenses on the Schedule C. Examples of deductible business expenses include advertising, insurance, legal and professional services, office expenses, and rent or lease expenses. You'll subtract your expenses from your gross receipts and the net profit or net loss will be shown on your 1040. If you had a net profit, that amount will also be shown on the Schedule SE. You use Schedule SE to figure the amount of self-employment tax that you owe on your business income."(snip)
Basically Self-Employment Tax ( a.k.a. Social Security + Medicare tax ) claims 15.3% of EVERY dollar earned by a self-employed person ... even if that amount is only $400 over the course of the entire year. This is the reason that TurboTax is showing a $700 tax liability on 'only' $4,500 worth of total annual income.
Also, for any webcam girls who are receiving payments from offshore webcam hosts ...
(snip)"Income from Abroad is Taxable
Many United States (U.S.) citizens and resident aliens receive income from foreign sources. There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with accounts in Liechtenstein. The interest of the IRS, however, extends beyond accounts in Liechtenstein to accounts anywhere in the world. Consequently, the IRS reminds you to report your worldwide income on your U.S. tax return.
If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents. See Publication 525, Taxable and Nontaxable Income for more information.
Additionally, if you are a U.S. citizen or resident alien, the rules for filing income, estate and gift tax returns and for paying estimated tax are generally the same whether you are living in the U.S. or abroad.
Hiding Income Offshore
Not reporting income from foreign sources may be a crime. The IRS and its international partners are pursuing those who hide income or assets offshore to evade taxes. Specially trained IRS examiners focus on aggressive international tax planning, including the abusive use of entities and structures established in foreign jurisdictions. The goal is to ensure U.S. citizens and residents are accurately reporting their income and paying the correct tax. "(snip)
^^^ in other words, the IRS is presently focusing greater attention than ever before on the offshore income sources of US citizens / residents ( thanks to Switzerland / Lichtenstein banks being caught red-handed keeping US citizen accounts and earnings a secret from the IRS ). Arguably, a pattern of regular interbank payment transfers taking place between the US bank account of a US citizen / resident, and an offshore business bank account handling payouts for an offshore webcam host, is automatically going to wave a yellow flag at the IRS ( because ALL cross-border bank transfers are monitored by the gov't these days thanks to terrorist anti-money laundering laws).
Or put another way, due to increased IRS scrutiny re offshore tax evasion, US webcam girls who work for offshore webcam hosts are probably increasing their chances of an IRS audit simply due to the fact that they have offshore income ... a higher risk IRS category. Add to that working in an 'adult' business ... also a higher risk IRS category. Add to that being self-employed ... yet another higher risk IRS category. While a small percentage of IRS audits do occur at random, a much larger percentage of audits occur because IRS computers identify certain people as representing a higher risk of tax evasion ... thus promising a higher probability that the time and money spent by the IRS to perform an audit will produce even more money for the IRS in the form of additional taxes and penalties !
~
Last edited by Melonie; 11-05-2011 at 07:22 AM.





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Last edited by sammii; 01-09-2014 at 05:07 PM.
Melonie is dead on! I've been self-employed for about 5-6 years now without triggering an audit because I claim everything. "Hiding" income is not the way to go, and it'll eventually trigger an audit because someone will eventually report that income they sent to you.
The flip side of this is that any income you don't claim, you can't take a deduction on when your taxes come. All those outfits you buy, using your phone for PS, or that room you set up to shoot clips, can be written off to varying degrees. I try to take the minimum write-off unless I have proof that I should be taking more. I NEVER write-off over the amount of my profits because that'll "red flag" my return immediately.
Normally if you shove 30% into a separate account (one that might accrue interest) for emergencies and to pay any potential taxes you might owe at the end of the year, and save you from a lot of Uncle Sam drama in the future.
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