Results 1 to 7 of 7

Thread: Tax Question

  1. #1
    Member
    Joined
    Jan 2006
    Posts
    45
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Tax Question

    Hi everyone, I have a very weird question. So, I've come to realize that strippers are supposed to pay taxes, that makes sense. But, currently, my parents claim me in their taxes since I'm still a student. I am wondering if I do decide to start stripping is there anyway I can pay my taxes as a dependent without my parents finding out what i do because ultimately i would have to give them information about the job and my earnings. I know I sound naive, but I don't know a thing about taxes, i've usuallly just let my parents handle that part of my life.

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Tax Question

    it's technically possible for you to file a separate tax return without informing/involving your parents ... provided that your total earnings are relatively small compared to the amount of money that your parents contribute to your costs of living/college tuition etc. However, if your total income reaches a level where it becomes questionable that your parents are actually providing 51% of your 'support', this may trigger an audit of both your own and your parents tax return.

    The area where you're actually going to have more difficulty is student grant/loan applications - which are based on 'family income' - which means your parents income plus your own income. In order for your parents to correctly complete the grant/loan applications, they need to know and include your income ! The federal grant/loan agencies are hard-wired into the IRS as well, such that every grant/loan application is cross-checked against the tax return reported incomes of the student and parents.

  3. #3
    Member
    Joined
    Jan 2006
    Posts
    45
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Tax Question

    okay, i just got a little scared. this is all so complicated. Thank you Melonie for replying, and now my other question is, since they do not keep a record in the club of how much you make each night, do u think i could record a total earnings that are small enough to prevent the arousal of a tax audit? Also, I read in another post of referring to the job with a different name such as Independent Contractor or anything of that such, maybe i could just tell my parents that i got another job with a cosmetics company or something, But on the tax forms, will I need to write a detailed job description of exactly what i do? And also, do u guys W-2 forms from your clubs, cuz I'm afraid my parents will see the club name and find out what im doing. Oh Lord, how am I going to pull this one, I'm soooooo scared of my parents finding out, and I don't want everything to blow over in my face when they have to find out from a tax auditor that their daughter is a dancer.

  4. #4
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Tax Question

    I don't want everything to blow over in my face when they have to find out from a tax auditor that their daughter is a dancer.
    ... well, that's better than your parents being indibted for 'fraud' by filing a student loan/grant application which does not include your dancing income in the 'total family income' figure they are required to enter on the form !

    Obviously, I'm not going to give any specific advice which could be construed as helping you avoid IRS income reporting requirements. However I will say this. Clubs get audited all the time. One of the best known clubs in the country, Scores in Manhattan, has just come under investigation not only for tax problems but for alleged 'skimming' by the owners. Clubs also have records of which dancers worked on what nights, how many private dances/VIP's particular dancers did, how much 'funny money' particular dancers cashed in, how much money customers charged on their credit cards to tip dancers etc. Whatever you decide to do, be aware that if the club you are working at happens to be audited, and if your name turns up in the club records, it's highly probable that you will be audited as well. Because of the dependent status on your parent's tax return, your parents are likely to also be audited. If student loans/grants are involved, i.e. if your parents applied for loans/grants on your behalf based on false information in regard to 'total family income' which did not include your dancing income, and if those loans/grants were approved based on that false information (i.e. the IRS discovers during a club investigation that you have been working there but have not reported any income or paid any taxes), the investigation could turn 'criminal'.

    What you propose carries huge risks and penalties if it is ever discovered by the IRS. In the BEST case you and your parents will both get whacked with a back tax bill plus penalties and interest, plus you'll get whacked with paying back student grant money and/or subsidized student loan interest on the basis that you weren't actually eligible for the grant/loan had your parents correctly reported 'total family income' (including your dancing income) on the application.
    ~
    Last edited by Melonie; 02-23-2006 at 11:48 AM.

  5. #5
    Member
    Joined
    Jan 2006
    Posts
    45
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: Tax Question

    DAMNN!! I am so glad you are telling me all of this Melonie, it's definitely good to know. Wow, I really have some serious thinking to do before entering the biz. So i am guessing the only way to avoid this is to become an independent and start doing my own taxes. Are there any students who are in similar situation that can please let me know about their experiences?

  6. #6
    God/dess VenusGoddess's Avatar
    Joined
    Oct 2003
    Location
    Home
    Posts
    13,598
    Thanks
    0
    Thanked 28 Times in 23 Posts

    Default Re: Tax Question

    If you are under the age of 24 (I believe) when you do your student loan incomes, they will take into consideration not just what you make but what your parents make as well. That's the one bad thing about going "independant". I moved out of my parent's house when I was 20 and filed a student loan application when I was 23...and they kept telling me that my parents had to contribute x amount of $$ to my education. It wasn't until AFTER I turned 24 and refiled an app that my parents' income wasn't used.

  7. #7
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Tax Question

    yup as a college student between the age of 18 and 23, you're really not allowed by law / IRS rules / student loan and grant rules to become truly 'independent' from a financial / tax standpoint.

    You can go through the motions of filing an independent tax return ... however if your parents are still trying to claim you as a dependent this is going to result in a new problem. Either you're going to wind up continuing to allow your parents to claim you as a dependent and paying an exoribitant tax rate on your own earnings (like 30%+), or your parents are going to have to stop claiming you as a dependent and pay higher taxes themselves. Additionally, your eligibility for student grants/loans will essentially go right out the window because, as Venus pointed out, the grant/loan applications absolutely require that both your own income and your parents' income be included on the application and that both you and your parents sign the application. If you add up the amount of income taxes you'll have to pay on your own income, plus the loss of student grants and subsidized low interest student loans forcing you to spend what remains of your dancing earnings on tuition payments, you may find that the actual net result is you will be dancing for 'nothing'.
    ~
    Last edited by Melonie; 02-23-2006 at 03:57 PM.

Similar Threads

  1. Tax Question
    By EvilChick1989 in forum Camming Connection
    Replies: 4
    Last Post: 09-16-2011, 01:23 AM
  2. Another tax question about IC's
    By sweet_baby in forum Dollar Den
    Replies: 2
    Last Post: 04-15-2011, 07:07 AM
  3. tax question
    By Jasimina in forum Dollar Den
    Replies: 1
    Last Post: 11-26-2007, 03:41 AM
  4. Tax ?Question
    By redhothoney in forum Dollar Den
    Replies: 1
    Last Post: 04-28-2007, 07:04 AM
  5. Tax question
    By Alisson_Wonderland in forum Dollar Den
    Replies: 14
    Last Post: 12-20-2003, 06:27 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •