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Thread: Filing Quarterly

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    Veteran Member julzgulz's Avatar
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    Default Filing Quarterly

    I havn't filed any taxes this year just because didn't know I had to file quarterly. I had another dancer tell me that she did the same thing and filed in April, her accountant fined her $2000. So I'm kind of nervous about this, I don't want to lose $2 G because I didn't know and I'm new this year. Anyone else have this happen or know of it happening?

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    God/dess Emily's Avatar
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    Default Re: Filing Quarterly

    this has been discussed a lot

    look at this thread. Melonie explains this quite well.

    http://www.stripperweb.com/forum/showthread.php?t=44218

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    Banned Melonie's Avatar
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    Default Re: Filing Quarterly

    In a nutshell, the government interprets tax liability as being owed as soon as the money is earned. For 'employees' this means having tax money withheld from every weekly paycheck and sent into the IRS by the employer. For self-employed persons like independent contractor dancers, the IRS settles for a tax payment being sent in every 3 months.

    When a self-employed person earned money from January through March of 2004 for example, and did not send in an estimated tax payment on April 15th 2004 for the taxes due on those earnings, this basically amounts to the self-employed person writing themselves a 'free loan' of money which legally is no longer theirs. The IRS rectifies this situation by charging interest on these 'free loans' i.e. unpaid estimated taxes. The IRS then tries to teach the self-employed person a lesson and levees a penalty (fine) on top of the interest charges, in hopes that the self-employed person won't forget to pay their estimated taxes on time in the future.

    I have no idea how much you earned last year, what state you live in (i.e. state income tax percentage) or your tax filing status. But if you pick a number out of the air like $75k in earnings for last year, between federal and state you probably owe $30k in taxes as say 23% federal + 14% SSI/self-employment tax + 3% state. You'll also probably wind up owing a grand or so in interest and another grand or so in penalty.

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    Veteran Member DJ_WuLf's Avatar
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    Default Re: Filing Quarterly

    AN Independant Contractor does not pay taxes on Gross income. They pay on Net income, or income after all business (and some personal) expenses are deducted. Any dancer should have 30-40 thousand in yearly schedule C business expense and depreciation. $75,000 gross less $40,000 expenses equals $35,000 net income which then is reduced by the standard (or itemized) personal deduction and other line items such as Child Care and certain educational expense. After all this the 75K gross is reduced to about 20K AGI. Tax is due on $20,000 at 19% rate so about $4,000. Distributed thru the quarters ($1,000 per Qtr) the penalty and interest due for failing to pay estimates would be around $500. Lets not scare the kids without covering the whole picture.
    14 years working in Strip Clubs. "What a long strange trip it's been"

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    Banned Melonie's Avatar
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    Default Re: Filing Quarterly

    Lets not scare the kids without covering the whole picture
    Agreed, but let's not low-ball them either ! Your $75k gross is pretty low for a full time dancer, translating into earning $300 a night before subtracting tipouts and stage fees/percentages. This might be a good figure for a part time dancer though.

    Your $40k in business expenses/depreciation is pretty high as well. The only year I ever cracked $40k I did quite a few road trips including air fares, plus electing to section 179 a new vehicle, plus depreciating my professional sized breast implants, plus paying web hosting fees on a pay website. This is a totally unrealistic figure for a dancer who only works at one local club, as the original poster does.

    The $75k I picked was net, not gross, which corresponds to roughly $1500 per week or $300 a night for a full time dancer. I didn't think that this was out of line for a typical SW girl, who is probably earning $400-500 a night with $100-200 in expenses and write-offs.
    Last edited by Melonie; 01-16-2005 at 02:51 PM.

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    Veteran Member DJ_WuLf's Avatar
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    Default Re: Filing Quarterly

    I don't think you are donating enough to charity. Those local girls are voracious donators. It really does begin at home ya know.

    Any business with a net profit margin more then 35% is NOT doing enough advertising. Honestly the IRS only expects to see tax paid on 30% of gross business reciepts. Why disappoint them? Buy more sox for that school girl outfit. 55 gallon drum of chanel #5 maybe. March futures on body glitter? What is the depreciation term for 8" platform heels? Also what about the salvage value of depreciated out thongs/G-strings? I'm serious here ...do you report that?

    $1500 a week is pretty good money for most non-manhatten strippers be they computer literate or not. Of course they all can triple thier money with a Carlton Sheets home study course. Now theres some taxes waiting to be paid.
    Last edited by DJ_WuLf; 01-16-2005 at 03:32 PM.
    14 years working in Strip Clubs. "What a long strange trip it's been"

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    Veteran Member julzgulz's Avatar
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    Default Re: Filing Quarterly

    Whoa OK. Well I guess I understood most of this lol. Well I am making an appointment with an accountant ASAP (as in tomorrow). So hopefully he can answer more questions for me. Thanks

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    Veteran Member DJ_WuLf's Avatar
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    Default Re: Filing Quarterly

    Lowball in NYC is pretty fancy living here in the Ozarks. Its all about the demographics.
    14 years working in Strip Clubs. "What a long strange trip it's been"

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