I'm hoping some of you ladies can help me as I really want to start off on the right foot in terms of being above-board with my escorting income. When I started dancing I tried to look into all this stuff, got confused and then just ignored it, and I wound up being scared to put money in the bank and not knowing what to do come tax-time... argh, I don't want that again! I did a search for this but the advice is so mixed up between escorting/camming/selling content etc.
I understand that as it's technically my first time paying taxes for this, I have a year before I'm expected to make quarterly payments or pay penalties. So I'm wondering, with escorting being a touchy subject in terms of legality, how do I approach this in terms of the IRS? I figured you just put down a similar job, such as modelling or the generic 'consulting" but is actually legal to do this, or can you be punished for putting down that the money came from a job that you don't really do. Also, won't the IRS be suspicious if you suddenly begin earning a large income and all your deductions are for things like hotel rooms, advertising on adult sites and things?? I guess you could avoid that by not deducting them, but if I'm going to be losing 30% of my money to taxes, I want to be able to at least claim legitimate deductions! Will it raise a red flag or even get you in legal trouble, if you are claiming money as a consultant or personal assistant, and the deductions and cash income point to escorting and basically, prostitution?
Also, do you file as self-employed, or an independent contractor? I guess technically I'm an independent contractor through dancing, although I've never received a 1099, so I'm not sure if I would be considered that for escorting too? Or would I be self-employed, although I haven't officially registered a business name or anything like that.
*confused* I'd REALLY appreciate any advice, either here or by pm!
xox



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