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Thread: Tax Situation Changed--Melonie? Anyone?

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    Default Tax Situation Changed--Melonie? Anyone?

    I know I have read cam girls pay taxes quarterly unless like me the main house money is taxed. Hubby gets taxed so if I have read right I don't have to pay quarterly. Well now we just filed for divorce, In Texas its a 61 day waiting period. Do I now need tto file quarterly or can I start that next year? If I need to start now do I wait till after the waiting period is over since we are technically still married? Texas does not allow legal separation so that doesnt factor in. Thanks ladies for any answers.

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    God/dess Zofia's Avatar
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    Default Re: Tax Situation Changed--Melonie? Anyone?

    Officially, you won't have to start until tax year 2013, which for you begins on January 1, 2013. BUT, save your money so you will have enough to pay your taxes for 2012! You'll still owe, you just won't have to file quarterly returns. I would start filing quarterlies with the next due date which is June 15, 2012. Your marital status is determined on the last day of the year, so can't do much about it until then anyway. I would file the June and September returns using the higher head of household rates. If your divorce is final by December 31, you should be fine. If it is not, you and your spouse will need to decide how you are filing. Otherwise you will probably have to file married, filing separately. In any case, you will have some money paid in with the IRS. (Texas doesn't tax incomes!) Good luck.

    XOXO
    Z

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    Banned Melonie's Avatar
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    Default Re: Tax Situation Changed--Melonie? Anyone?

    Hubby gets taxed so if I have read right I don't have to pay quarterly.
    That comment, which was posted in the camming forum, was true under one particular circumstance ... where the 'employee' spouse filed a W4 which reduced the number of claimed dependents to the point where enough additional taxes were being withheld from weekly paychecks to cover not only the taxes due on the paycheck income but ALSO the taxes due on the other spouses' camming income. In the absence of such 'over-withholding', the camgirl spouse would still have to file and pay estimated taxes on her camming income.

    Zofia is making reference to a 'first year exemption' from filing and paying estimated income tax which applies to newly formed businesses ( like camming ). As Zofia pointed out, you will still owe the taxes on the business' first year income, but if you don't voluntarily make estimated tax payments during 2012 you will wind up paying a HUGE amount of taxes all at once in early 2013. Where camming income is concerned, at minimum you will wind up having to pay 15.3% social security / medicare tax on every dollar of camming income you earned during 2012. This will not change if your marital status changes. As Zofia also generally pointed out, you will more than likely also owe federal income tax ... but this is dependent on the total number of dollars earned, the number of dependents that you can claim, your marital / filing status for 2012 as decided by the divorce court etc.

    However, I am going to disagree with Zofia about filing / paying 2012 estimated taxes ... for one particular reason about which I ( unfortunately ) have prior experience. While ( still ) married, it is arguably the case that all tax money withheld is the joint property of both spouses. On the flip side, it is arguably the case that all tax liability is the joint liability of both spouses. Thus if you pay in money in the form of estimated taxes before your divorce is final, the attorney for your ex-husband may 'wangle' the financial settlement such that the estimated tax money you paid 'offsets' other monies that your ex-husband may have otherwise been required to pay. And even after your divorce becomes final, the divorce court will most probably rule on how your full year 2012 taxes should be filed, how any 2012 tax refund must be shared, etc.

    So instead of making any estimated tax payments during 2012, on this coming Monday, you should run down to a local bank and create a new ( business ) bank account in your name only. Deposit all of your cam checks into this account. Withdraw 80% of the amount of each cam check from this account after the check clears, and deposit it in an existing personal bank account ... which you can then use to pay bills etc. The 20% that you won't withdraw will be roughly equal to the estimated taxes that you are likely to owe. Then once January arrives, and you actually know your tax filing status for 2012, the 20% accumulated amount can be used to pay the taxes due when you file your 2012 tax return. If any divorce related controversy arises before then, you can still make the case that the 20% which has been accumulating in the separate bank account is not a personal 'asset' ( subject to potential division between yourself and your soon to be ex by the divorce court ), but is instead 'escrow' money that is already owed to the IRS by your business as a result of your business activities ( which should NOT be subject to potential division by the divorce court ).

    As you can see, failure to keep your cam money 'separate' ... and having the paper trail of a separate bank account to prove it ... may result in your soon-to-be ex having a 'claim' to part of that money. And because your 2012 taxes are not going to be 'separate', estimated tax payments you make to the IRS during 2012 may also result in your soon-to-be ex having a de-facto 'claim' to part of your estimated tax money as well.
    Last edited by Melonie; 05-13-2012 at 06:18 AM.

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    God/dess Zofia's Avatar
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    Default Re: Tax Situation Changed--Melonie? Anyone?

    Mel makes a good point about joint property. Having never been married, thus never divorced, that issue did not cross my mind. Agree, open a business banking account and save your taxes.

    HTH
    Z

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    Default Re: Tax Situation Changed--Melonie? Anyone?

    ^^^ trust me, I wish I hadn't learned about the joint property / joint responsibility issue the 'hard' way !!!

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