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Thread: Cam Girl Taxes

  1. #26
    Veteran Member sweetsam's Avatar
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    Default Re: Cam Girl Taxes

    OK I got my tax question answered in here, because I switched to DP and because I started SM last year.

    However on the paying quarterly I have never done that and I have been camming almost 4 years. The IRS always gets what I owe them when I file at the end of the year. I know I should probably start paying quarterly going forward, but it hasn't been an issue for me.

    The reason it hasn't been an issue for me is because I have two kids, so I get a refund from that, and I never made too much that I wouldn't get a return. So that being said I get refund minus what I owe to IRS from camming.

    Just thought I would throw that out there, and I always file with a tax person, I don't try to figure anything out alone.
    Last edited by sweetsam; 01-06-2012 at 08:07 PM.




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  3. #27
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    Default Re: Cam Girl Taxes

    Same here. The only difference is 2011 I worked at companies where I will be getting a w2. One of the companies I still work for. So that will offset a little bit what I owe from camming.


    Quote Originally Posted by bluexxxtasy View Post
    idk i have yet 2 owe taxes.. me and my husband are self employed and we report everything and only take expenses of items that we have reciepts for.. and we do it once a yr like everyone else..maybe its because we have kids.. we also still pay self employment taxes ect.. idk..




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    Default Re: Cam Girl Taxes

    thanks! I got the home and business edition, and will file by the end of jan. i'm feel much better now, i was stressing last night.

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    Default Re: Cam Girl Taxes

    Quote Originally Posted by Melonie View Post

    Now there is, unfortunately, another 'curve ball'. Estimated taxes on business income earned between October 1st and December 31st of 2011 is due by January 16th ... 10 days from now. So while you have until April 15th to complete Schedule C + the 1040 long form tax return, from a 100% legal standpoint you will need to file an estimated tax voucher and send in an estimated tax check next week if you wait until the April 15th deadline on your tax return. However, the IRS does allow the January estimated tax payment to be 'incorporated' into the tax return filing AS LONG AS that tax return is filed before the end of January. This isn't possible for camgirls who are expecting 1099's ( which may not show up until early March ), but would be possible for camgirls who won't be getting 1099's as a result of working only for foreign webcam hosts.
    If you cammed for a company that gave you a 1099 before, I'm pretty sure you can go ahead and file your taxes without that 1099. I've done it before. With a company where I was getting a paycheck, I used my last paycheck to get the info about how much I contributed and was paid. With a cam site, you can just look up the info on how much you were paid and file based on that.

    I mean, SM never gives me a 1099 so I don't need one to file. I'm not sure why it would be any different for a site that send you one, as long as you know how much you made and have the company's info.

    I'm not planning on waiting until I get my 1099s because I want to be able to do my taxes and pay my last amt owed at the same time. That way I don't overpay and have to wait for a return.

    If this info is wrong, someone feel free to correct me.
    Last edited by Cam_Model_Jess; 01-06-2012 at 01:58 PM.

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    Default Re: Cam Girl Taxes

    those using turbo tax dnt get excited that u can efile now.. the irs is not going to start processing the returns until jan 17th... i was stupid excited then let down lol now my return is just sitting there...waiting...lol
    still here.... just in another chapter..

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    Default Re: Cam Girl Taxes

    The only difference is 2011 I worked at companies where I will be getting a w2. One of the companies I still work for. So that will offset a little bit what I owe from camming.
    This may or may NOT actually be the case. Weekly estimated income tax withholding amounts from employee paychecks are based on the assumption that said paycheck is the ONLY source of income. Adding camming income on top of paycheck income may bump up your tax bracket, in which case the weekly estimated income tax withholding by your straight job employer may no longer be sufficient to cover the taxes due with a higher tax bracket in effect. But if the amount of weekly estimated income taxes being withheld from your straight job paychecks is sufficiently high to cover ALL of your income tax obligations, then an additional quarterly filing / payment isn't necessary.

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    Default Re: Cam Girl Taxes

    You also would calculate any business related expenses that would come off of the original amount earned

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    Default Re: Cam Girl Taxes

    Quote Originally Posted by Cam_Model_Jess View Post
    I'm not planning on waiting until I get my 1099s because I want to be able to do my taxes and pay my last amt owed at the same time. That way I don't overpay and have to wait for a return.

    But don't you need the 1099s to get their employer id number?

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    Default Re: Cam Girl Taxes

    Melanie - you are very insightful and I understand where you are coming from - but I would rather count on what i know I have saved or invested than to speculate on what Uncle Sam may have left over for me - you can only tax the wealthy so much - the trend is already that they are moving their money and business out of the US - more taxation will only further that in my opinion , there by reducing the pool of wealthy to tax - Anyway , instead of a difference of opinion , what are your ideas for maximizing / saving to the best tax advantage for self employed cam chicas

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    Default Re: Cam Girl Taxes

    Quote Originally Posted by fallout_grrl View Post
    But don't you need the 1099s to get their employer id number?
    That's why I said that you shouldn't need the 1099 if you also worked for them the year before (assuming their ID number hasn't changed). But I work for a company that doesn't send the 1099 anyway.

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  13. #36
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    Default Re: Cam Girl Taxes

    ^^ Ohh ok I missed that.
    I got real excited, signed on to turbo tax, then quit after I realized I needed their EIN lol. I have my other job's W-2, so I'm just eager to get it over with.

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    Default Re: Cam Girl Taxes

    Quote Originally Posted by fallout_grrl View Post
    ^^ Ohh ok I missed that.
    I got real excited, signed on to turbo tax, then quit after I realized I needed their EIN lol. I have my other job's W-2, so I'm just eager to get it over with.
    I never used one for SM. I'm an independent contractor not an employee.

    I don't even think you should need the 1099 to file, but I'm not gonna say I know that for sure b/c I've never had to use a 1099 to file.

    Melonie?

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    Default Re: Cam Girl Taxes

    You don't need a 1099 to file. It isn't like the W2 you have to attach to your tax return. All you do is the Schedule C and then the main form 1040 and whatever credits you have, you have to add those forms in order to qualify for the credits.

    If your camsite sends you a 1099 and you neglect to file, trust me, the IRS does what is known as a absentee tax return FOR you--- meaning they file for you and that filing does not give you any credits or anything. If you owe, they may let it go (it takes them sometimes a couple years to catch up with you) for a time, but, sooner or later, the IRS will start sending you bills, then certified letters stating they are going to either garnish your wages, attach your bank account, seize any tax returns, put liens on your property etc. They also will send an actual IRS agent who is assigned to your *file* to visit you at your last known address!

    Anytime there is a papertrail, the IRS will find a way to get in your pockets.

    Also, just remember, if you take a lot of deductions to reduce your tax liability, and say you want to purchase a house or car, the lender goes by what your adjusted gross income is. So, if you took a ton of deductions and that income comes out to be really low, that's what your loan would be based on and can be the difference between qualfying or not.

    If you don't file and pay quarterly, you are assessed interest and penalties on what you owe if you owe.

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    Default Re: Cam Girl Taxes

    ^^^ no, unlike employee W2's the actual 1099-misc forms for payments to independent contractor businesses do not need to be filed with your annual tax return. The only place they actually need to show up ( actually just the total income per payer as listed on the 1099's needs to show up) are as line item entries in the supporting detail for business income sources on Schedule C.

    And while there is a first year 'new business' exclusion, failure to pay estimated taxes quarterly can result in both interest charges plus penalty charges for underwithholding.


    what are your ideas for maximizing / saving to the best tax advantage for self employed cam chicas
    Actually, I've already 'invested in' the best tax advantage ... moving out of the USA to a country that imposes no tax on 'foreign' income sources, no 'sales tax' a.k.a. VAT, etc. And even though my earnings are still subject to US income taxes, a 100% legal 'exclusion' applies to the first $91,000 per year of income. This means that if I earn $90,000 per year down here way south of the border I get to keep $90,000 ! If I was still living in New York, earning the same $90,000 would maybe let me keep $55,000, after paying social security / medicare tax, federal income tax, state income tax, city income tax etc. Or viewed from the other perspective, arriving at the same $90,000 per year worth of after-tax income if still living in New York would require that I earn somewhere around $150,000 pre-tax.

    However, if I do earn more than the $91,000 limit, then the killer US tax rates immediately come back into effect on anything I earn above the limit. For this reason, and since I have been doing very well managing my investment income, I really can't 'afford' to earn very much via camming anymore LOL !

  17. #40
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    Default Re: Cam Girl Taxes

    I was reading up on the US laws for this year so that I can start working on my taxes, and I realized how helpful these pages online really are. They're pretty clear. So I just cut some info from the IRS site and posted them here. If you're filing taxes for self-employment this year, make sure that you read the WHOLE site or at least the portions that are pertinent to your situation. I am ONLY posting a portion of the info here. But these portions, I think, will answer most of the basic tax questions for cam girls.

    I started here http://www.irs.gov/businesses/small/...8846,00.html#1 and then followed the links on this page to get to the rest of the info I found.

    Who Must Pay Self-Employment Tax?


    You must pay self-employment tax and file Schedule SE (Form 1040) if either of the following applies.
    • Your net earnings from self-employment (excluding church employee income) were $400 or more.
    • You had church employee income of $108.28 or more.
    Generally, your net earnings from self-employment are subject to self-employment tax. If you are self-employed as a sole proprietor or independent contractor, you generally use Schedule C or C-EZ to figure net earnings from self-employment.
    If you have earnings subject to self-employment tax, use Schedule SE to figure your net earnings from self-employment. Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax.

    How to Pay Estimated Tax

    If you are filing as a sole proprietor, partner, S corporation shareholder and/or a self-employed individual, you should use Form 1040-ES, Estimated Tax for Individuals (PDF), to figure and pay your estimated tax. For additional information on filing for a sole proprietor, partners, and/or S corporation shareholder, refer to Publication 505, Tax Withholding and Estimated Tax.
    If you are filing as a corporation you should use Form 1120-W, Estimated Tax for Corporations (PDF), to figure the estimated tax. You must deposit the payments. For additional information on filing for a corporation, refer to Publication 542, Corporations.
    Who Must Pay Estimated Tax

    If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.
    If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.
    If you had a tax liability for the prior year, you may have to pay estimated tax for the current year. See the worksheet in Form 1040-ES (PDF) for more details on who must pay estimated tax.
    Who Does Not Have To Pay Estimated Tax

    You do not have to pay estimated tax for the current year if you meet all three of the following conditions.
    • You had no tax liability for the prior year (You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return.)
    • You were a U.S. citizen or resident for the whole year

    When To Start


    You do not have to make estimated tax payments until you have income on which you will owe income tax. If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. You can pay all your estimated tax at that time, or you can pay it in installments. If you choose to pay in installments, make your first payment by the due date for the first payment period. Make your remaining installment payments by the due dates for the later periods.
    No income subject to estimated tax during first period. If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. Table 2-1 shows the dates for making installment payments.



    Table 2-1.Due Dates for Estimated Tax Installment Payments
    If you first have income on which you must pay estimated tax: Make a
    payment
    by:*
    Make later
    installments
    by:*
    Before April 1 April 15 June 15
    Sept. 15
    Jan. 15 next year
    April 1–May 31 June 15 Sept. 15
    Jan. 15 next year
    June 1–Aug. 31 Sept. 15 Jan. 15 next year
    After Aug. 31 Jan. 15
    next year
    (None)


    • Your prior tax year covered a 12 month period

    Last edited by Cam_Model_Jess; 01-10-2012 at 12:45 PM.

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    Default Re: Cam Girl Taxes

    IF YOU PAY FOR HEALTH INSURANCE....


    Sect. 2042: Deduction for health insurance costs in computing self-employment taxes in 2010

    Generally, small business owners may not deduct the cost of health insurance when calculating self-employment tax. Under the Small Business Jobs Act, and subject to specific statutory restrictions (i.e. deduction is not available if self-employed individual is eligible to participate in an employer-subsidized health plan maintained by the employer of the taxpayer or the employer of the taxpayer's spouse), business owners can deduct the cost of health insurance for themselves and their family in the calculation of their 2010 self-employment tax.

    The 2010 Form 1040 Schedule SE (PDF) and its instructions (PDF) contain directions on how to calculate the credit.

    Note: Make sure that you understand the difference between being a self-employed individual and a "small business owner" and how this affects you.
    Last edited by Cam_Model_Jess; 01-10-2012 at 12:47 PM.

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    Default Re: Cam Girl Taxes

    EARNED INCOME CREDIT

    If you got this credit last year and you're wondering where it went, it's still there apparently, just buried in the instructions.

    So... if you made less than $4,480 from self-employment, you may be eligible to take this credit. This would mostly apply to new cam girls or girls who worked only a portion of the year or are only working a few hours a week, etc. Obviously if you're camming full time, you've made more than this.

    Note: Not everyone will be eligible to claim this credit. You may be able to claim this if you use "Optional Methods" to calculate your income. Make sure that you read the whole section and/or seek the advice of a tax professional.

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  23. #43
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    Default Re: Cam Girl Taxes

    WHAT CAN I DEDUCT?

    (This is very vague, so you may want to ask for clarification. However, if I wanted to avoid being audited, I would NOT deduct make-up, lube, lingerie, etc. especially if you cannot prove that you are using these things ONLY for business purposes. I mean, do whatever you want, but I have seen some people refer to this as the "Housewife Rule." If you would incur some of these expenses during the course of your normal life (ie nail polish) or from being a housewife (ie. uhhummm... a turkey baster?), you would be better off not claiming it, even though it's an "excepted" expense in the industry.)


    Deducting Business Expenses

    Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

    What Can I Deduct?

    To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

    It is important to separate business expenses from the following expenses:

    The expenses used to figure the cost of goods sold,
    Capital Expenses, and
    Personal Expenses.


    Capital Expenses

    You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

    Business start-up cost (See the note below)
    Business assets
    Improvements
    Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.

    (My note: you can choose to deduct expenses in certain ways. Example: You can either deduct the cost of a computer as a start up cost, an improvement, or you can deduct depreciation yearly)


    Personal versus Business Expenses

    Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

    For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

    Business Use of Your Home

    If you use part of your home for business, you may be able to deduct expenses for the business use of your home. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

    Clarification on the Business Use of Your Home:

    You can claim a Home Office Deduction if you use a particular room in your home ONLY for business and not personal use. Ex: An extra bedroom that no one ever sleeps in. But if the use of a portion of your home is "merely appropriate and helpful" you cannot take the deduction.

    For a full explanation of tax deductions for your home office refer to Publication 587, Business Use of Your Home. In this publication you will find:

    The requirements for qualifying to deduct expenses for the business use of your home (including special rules for storing inventory or product samples).
    Types of expenses you can deduct.
    How to figure the deduction (including depreciation of your home).
    Special rules for daycare providers.
    Selling a home that was used partly for business.
    Deducting expenses for furniture and equipment used in your business.
    Records you should keep.
    Where to deduct your expenses (including Form 8829, Expenses for Business Use of Your Home (PDF), required if you are self-employed and claiming this deduction).
    The rules in the publication apply to individuals.

    You can get pretty crazy with these deductions, so make sure that you read about exactly what you can deduct.


    Deducting Expenses

    If you qualify to deduct expenses for the business use of your home, you must divide the expenses of operating your home between personal and business use. This section discusses the types of expenses you may have and gives examples and brief explanations of these expenses.

    Types of Expenses

    The part of a home operating expense you can use to figure your deduction depends on both of the following.

    Whether the expense is direct, indirect, or unrelated.

    The percentage of your home used for business.

    Table 1, next, describes the types of expenses you may have and the extent to which they are deductible.

    Table 1. Types of Expenses

    (The table won't copy over, so go to this link http://www.irs.gov/publications/p587...link1000226331
    Last edited by Cam_Model_Jess; 01-10-2012 at 12:55 PM.

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  25. #44
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    Default Re: Cam Girl Taxes

    Jess you are amazing!!! Thanks for posting all of this! (Shame it doesn't apply to me because I don't live in the US, but still!)
    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:

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    Default Re: Cam Girl Taxes

    And lastly.... Just a few realistic examples of what you can deduct if you qualify: a portion of your rent, renter's insurance, mortgage, utility bills (including cable internet). You can NOT deduct a landline. However, you can deduct certain long distance calls or a second phone line used ONLY for business. You can deduct a cell phone that is ONLY used for business, but not one that is used for both business and personal.

    Even if you do NOT qualify to deduct expenses from a Home Office, you can deduct items under the "Business Furniture or Equipment" section or the "Property Bought for Business Use" section. Generally, you can deduct an item, such as a computer, couch, table, desk, chair, etc. if it passes the "More than 50%" test (that is, if you use the item for business more than 50% of the time). This is a Section 179 deduction.

    If you use the item for business than the 50% of the time, you may still be able to claim a portion of its depreciation (for example, if you use your computer for business and to manage investments a total of 90% of the time, and for personal reasons 10% of the time). However, I wouldn't bother with it at this point unless it's super expensive or you're paying someone to do the math for you.

    If you used an item for personal reasons but converted it to business use AFTER 2010, you may NOT claim any portion of it under 179. Ex: You bought a desk to use in your home and you started camming so you decided to use it for camming. You cannot claim it. If you think about it, the receipt will have a date on it that is before the date you first started camming. However, you can still claim some depreciation.

    See Publication 946 for info about how to prove "use"

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  29. #46
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    Default Re: Cam Girl Taxes

    Is TurboTax Home and Business simple and easy to use ?
    I started camming in OCT 2011, so I havent been camming long. Im totally new to having to file tax returns and im completely clueless really. My husband also worked in 2011, so should we file jointly? Also we have a child. This info you guys posted is amazing, im starting to understand how it works, but im still very confused lots of things. I only get my income from SM and I know they dont send out anything to us cam girls in the U.S.

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    Default Re: Cam Girl Taxes

    Quote Originally Posted by Melonie View Post
    And US states that levee their own personal income taxes or business taxes will also require a voucher filing and estimated tax check by the same January 16th deadline.
    ~
    I thought it worth mentioning that if you file your 2011 taxes by Jan 31st, you do not have to make your last federal tax payment by Jan 17th. You can just mail it in with your taxes.

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    Default Re: Cam Girl Taxes

    I haven't used that software. But I do know that if you only cammed for part of the year and you had other income where there were withholdings, it will be a little more complicated b/c you have to figure in what was withheld from your paychecks and then there will be a different portion of your income for camming (for which YOU have to pay the amount that would've been withheld if you were getting paychecks).

    I think it's better to file jointly because you get more deductions.

    You were not required to make estimated payments, so you don't have to worry about that.

    For this year, you should be fine using TurboTax. The only reason I used H & R Block last year is that I wanted to learn how to do the taxes myself, so I basically paid someone to walk me through it. I did the taxes first then I took them to H & R Block and they told me how to fix them. Then I had them do the "Second Look" on the return I prepared and they filed for me. It was less expensive than buying the software and I learned how to do taxes.

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    Default Re: Cam Girl Taxes

    First off, let me comment that there is a HUGE amount of tax related discussions over in the Dollar Den ... some of the most applicable ones i.e. 'sole-proprietor' business taxes, allowable business expense tax deductions, estimated tax filing etc. are 'stuck' to the top. But since camgirls seem to be more comfortable reading about tax info that is specifically focused on their tax situations in the webcam forum, let's continue ...


    Is TurboTax Home and Business simple and easy to use ?
    It's as simple as it CAN be given the complexity of US taxes ! Actually, there's a Q&A mode that is very straightforward.


    But don't you need the 1099s to get their employer id number?
    No as a 'self-employed' independent contractor business, only YOUR id number ( which usually = your SS number ) is required. The 'employer' id numbers only come into play if you are reporting 'employee' paycheck income ( from which estimated taxes have already been withheld )


    I thought it worth mentioning that if you file your 2011 taxes by Jan 31st, you do not have to make your last federal tax payment by Jan 17th. You can just mail it in with your taxes.
    again, as mentioned earlier, this involves an audit risk if there is any chance that you'll be receiving 1099's from webcam hosts. If you file your tax return by the end of January in order to avoid making the January 17th estimated tax voucher filing and payment, and if a 1099 shows up in the first week of March, if the 1099 income amount and income source are not listed in the Schedule C supporting detail that you previously filed with your tax return, the IRS may view this 1099 income as being 'unreported'. This will be quickly sorted out via an audit, but who knows what other issues might arise during that audit !!!


    My husband also worked in 2011, so should we file jointly? Also we have a child
    Most probably filing joint will result in the lowest taxes being due. TurboTax actually runs all of the scenarios and will tell you if the method of filing you have chosen isn't the method that will result in paying the least amount of taxes / receiving the greatest amount of tax credits.


    you can deduct if you qualify: a portion of your rent, renter's insurance, mortgage, utility bills (including cable internet)
    This all falls under the 'home office' business expense tax deduction. Be aware though that, statistically speaking, this particular deduction has a very high risk of triggering an audit ... and especially so if there is anything else 'unusual' about your tax return ( like foreign source income that can't be documented via 1099's ).


    One of the difficulties for girls working as exotic dancers and camgirls, where a portion of their income isn't officially supported by 1099's and/or W2 forms ( i.e. an 'objective' third party ), is that the total annual income figure reported on the tax return is 'self-generated'. From an IRS agent's point of view, an exotic dancer or camgirl working for a foreign webcam host could 'invent' any figure for total annual income that she chose to, and there is no 'independent' means of verifying that her reported income is accurate !

    On the one hand, without 1099's and W2's, the IRS can't officially prove that a particular girl earned X thousand dollars last year. On the other hand, if the IRS chooses to doubt the accuracy / professionalism of a particular girl's reported income, and if the IRS chooses to 'estimate' that the girl actually earned $250,000 last year based on her lifestyle, her savings and investments, her local cost of living, her car's value, her credit card spending levels etc., that girl also cannot prove that she DIDN'T actually earn the $250,000 that the IRS 'says' she did !!! This can lead to potential scenarios where the girl is faced with a choice of paying the ( bogus ) taxes due on the $250,000 the IRS estimated that she earned ( but she actually didn't ), versus having her bank accounts and other financial assets 'frozen' for months or years, plus paying legal fees to an attorney, while her case works it's way through the tax court. Thus it pays to approach your business accounting, business banking, and tax compliance in a 'professional' manner. And it also pays to evaluate the potential dollar value of claiming particular business expense tax deductions against the increased probability of triggering an audit as a result of attempting to claim those deductions.
    Last edited by Melonie; 01-11-2012 at 04:28 AM.

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    Default Re: Cam Girl Taxes

    Also, I don't know if this was mentioned or not, but if you want to do something with that money you best be filing. Buying a car, house, education all are big investments that would set off red flags if you did not file.



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