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Thread: Tax help please!!!

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    Question Tax help please!!!

    Hi!
    Ive been very seriously thinking about dancing, but i wanted to get more info about taxes as a dancer, I don't want to end up missing something or not paying or filing then collecting debt. I know you would be an independent contractor(ur basically a small business), I understand a lot about the taxes from reading on the IRS website, but i just wanted to hear from other dancers possibly in tx who can explain the steps they take to complete their quarterly and annual taxes. Any help would be really appreciated.

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    God/dess Selina M's Avatar
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    Default Re: Tax help please!!!

    It's not terribly difficult and there's a lot of info on here if you run a search in Dollar Den.

    Your first year dancing, you're exempt from quarterlies because you don't know how much you'll make. You pay it all on April 15th.
    That said, I think you can take a decent guess at what you'll owe, so you don't suddenly find yourself owing a large chunk of change you don't have. Keep a log and after your first month, you can see approximately how much you average hourly or each shift, and you can then project what tax bracket you're likely to be in for income tax based on how much you plan to work. Most girls on here suggest 30% as your safety spot for setting aside taxes.

    Simple breakdown (assuming you wanted to do this as your only job, and are single with no kids):
    - You owe 15% on everything you make dancing; self employment tax. Half of the total amount of SE tax you pay is deductible.
    - Standard deduction is now $6300, and personal exemption is $4000; this means the first $10,300 of your income is not subject to income tax. Do with this as you like; personally I log my earnings and the first $10,300 every year, I don't set aside any income tax for. You can also just set aside whatever % you've figured on your bracket being, and then treat the overage as your 'tax refund' when you do your return.

    Obviously it gets more complicated if you also have a vanilla job that takes taxes out/changes your bracket. That can reduce what you owe as income tax, but you will ALWAYS owe 15% self-employment tax on dancing money. If you set aside nothing else, set aside 15%.

    You can do the taxes yourself with TurboTax or the paper forms, but I strongly suggest finding a local accountant to look through them and make sure you did everything correctly.

    Your 2nd year, you are *supposed* to pay quarterlies; there is a small penalty if you don't; some people do and some people don't. If you want to avoid the penalty, there is a stipulation that you can just pay 100% of what you owed the prior year via your 2nd year quarterlies, and then pay the difference come April.
    "People jack off with the left hand and point with the right."

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    Default Re: Tax help please!!!

    Also, while your 2015 payment will be due April 15, 2016, you will need to make your first quarterly estimated payment for Jan-Mar 2016 by the same date. Once you have done your 2015 taxes you will know how much you will owe for the quarterlies. Either way, put aside 30% now just in case. I do my own taxes with the TurboTax Business software, but agree with Selina. If numbers are not your thing, get a good accountant the first couple of years.

    I suggest reading this thread https://www.stripperweb.com/forum/sh...still-worth-it as well as threads in Dollar Den. That thread is aimed at camgirls, but they are IC's just like dancers. Once December hits it starts to gets busy in there as we are all trying to get our info together.

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    Default Re: Tax help please!!!

    Thank you both for the advice, I definitely wanted to get an accountant at least the first year. I did read about setting aside 30%, but is that for your annual taxes , and then you also set aside 15% for SE tax?

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    God/dess Selina M's Avatar
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    Default Re: Tax help please!!!

    No no, the 30% is all that you pay annually. It's split up into 15% being your SE tax (which is what your employer normally pays, but dancers being self-employed are hence responsible for it), the other 15% is a 'safe guesstimate' for income tax based on what bracket most dancers tend to fall in.
    That allows for you to make up to about $50k a year (I think the bracket goes to $38k and that's after the $10k in deduction/exemptions) dancing before you hit a higher tax bracket.

    For guesstimation purposes, you'd be nearing the $50k/15% if you were to work 2 shifts a week and average $500/night, or work 4 shifts at ~$250... basically any combo of making $1k a week.


    Edit: Holy shiz, Zofia thanked me
    (Zofia is the resident tax guru)
    "People jack off with the left hand and point with the right."

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    Default Re: Tax help please!!!

    Selina, you got all the advice right. Thanks were much in order.

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    Default Re: Tax help please!!!

    Oh ok I understand! Thank u Selina yes they have so many knowledgeable people on here still looking thru the forum lol

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