I've spent hours on hours reading posts, and I think I got it all down, but don't want to get in any legal/IRS trouble if I missed anything!!!!!!
I am a college student but took a health leave for a year.. as a result, I am ineligible for financial aid for one semester and have to save 30k for when I go back. I began dancing February. I had NO idea I had to pay taxes- I'm young and inexperienced. My dancing follows the guidelines for being an I/C. It's like a pop-up "strip club" in NYC at various venues. I have to pay a house fee that goes to tipping the house moms and bouncers, and I keep all the money I make-20$ per dance. (ALSO- I get no 1099 or W2---- does this matter?? )
I've been depositing all of my money into my personal bank account. My mom gave me 3,000 cash for my birthday, and I have a written note for it. Other than that, all my cash deposits are income. I have been afraid to reach a 10,000 limit, but then I realized I could pay taxes and it would be okay (i must pay school via check).
My main concern is being audited/finding myself doing something illegal accidentally due to lack of knowledge. A dance-knowledgeable accountant I found is on vacation for a month.
SO, based on scouring this board, I do not need to worry about the law if I properly file taxes, meaning:
Is this all correct? And is this all the info I need to know?
- I file as an I/C, I can label myself as "entertainer", save 30% for taxes, have an accountant help me for my first time
- If I make more than my parents only, they cannot claim me as a dependent on their taxes; I am still dependent in terms of FAFSA, but next time I file FAFSA, the income is mine+parents'
- I can deposit all of my earnings in my bank account even after depositing over 10k in a short time span, as long as my 2015 April 15 annual taxes match to my 2014 bank deposits, and won't be audited due to suspicious activity (this is honestly my main concern. Aren't my cash deposits right now suspicious? How can I keep depositing my income till Sept. 15? ... I keep a detailed record of my nightly earnings in an ink-hand written log book. Yesterday I began to apply for an EIN to maybe open a business bank account because apparently that's more legitimate and deposit into that instead, but they asked what service my business (sole proprietor ?) provides and I didn't know how to answer haha. But should I even worry about opening a business account if every dollar of my cash deposits will be reported when I file taxes? That's enough if I get audited, right?)
- My financial aid may be effected (although my parents are DIRT poor, and if I made 30k in addition to their income, I would still qualify for full aid through my school)
- I pay quarterly taxes, and do an annual one by April 15, and everything in the end has to match up. (But I've missed my first quarter, April 15!! )
Also, I'm not sure if you've heard of it, but I work with Saint Venus Theater in nyc... its been running for years, the cops come in from time to time to check in, and they're very very strict with not allowing illegal things to happen. So, my profession is legal....but is there any chance that I can be thrown with illegal accusations if anyone there gets in trouble??
Thank you SO MUCH !!!!!![]()




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