Filing taxes as a couple

[iamgine]

Kim and David earn $10k for the year. They split this down the middle. Come tax time Kim receives a 1099 for the full $10k. What does she do?

Thanks

 

[cbhours]

You mean if they aren't married? I'm guessing Kim should issue a 1099-misc to David for 5k and then kim deduct that 5k amount as an expense.

 

[ElaySmith]

You mean if they aren't married? I'm guessing Kim should issue a 1099-misc to David for 5k and then kim deduct that 5k amount as an expense.

This. The 5k paid to David should be used as a payroll expense for Karen and David should claim and pay his own taxes on his earnings.

 

[iamgine]

Thanks a lot for the help. I could see that getting pretty complicated if you have a channel that features several people, especially if you don't keep in touch with all of them. I guess you'd need to track the earnings of each person? What happens if someone refuses to pay their share of tax or flat out denies having received money in the first place?

 

[cbhours]

Thanks a lot for the help. I could see that getting pretty complicated if you have a channel that features several people, especially if you don't keep in touch with all of them. I guess you'd need to track the earnings of each person? What happens if someone refuses to pay their share of tax or flat out denies having received money in the first place?

If you cut them in on 600 or more in the year then you have to do that form. I'm not a tax expert or anything but I imagine if they try to deny receiving the money and its high enough its going to dramatically increase the chance they are going to get an audit.

 

[ElaySmith]

Ideally you would want to set up a business bank account where all your deposits go from each website. You would then be able to write checks to whoever you are paying. That would be your proof of payment. When filing your taxes use those amounts as payroll deductions. This will allow you to file your taxes correctly. Whatever they do and how they file is out of your control and shouldn't have any effect on you as long as you keep good records on your end.

Edit: Also if your going to be doing this a lot its def worth it to talk to a professional tax person.

 

[iamgine]

Very helpful, thanks again. It almost sounds easiest to take on the full tax burden yourself and just pay others for appearances.

 

[Danigirl]

If it’s on chaturbate, it’s easy to send tokens from one model account to another. Let’s say if you make 10,000 tokens while using your model profile and you want to split the earnings down the middle. You would just sent 5000 tokens to his account. This way chaturbate takes care of the tax forms. It’s harder on other sites but at least chaturbate is easy with that.

 

[iamgine]

If it’s on chaturbate, it’s easy to send tokens from one model account to another. Let’s say if you make 10,000 tokens while using your model profile and you want to split the earnings down the middle. You would just sent 5000 tokens to his account. This way chaturbate takes care of the tax forms. It’s harder on other sites but at least chaturbate is easy with that.

Oh wow, this probably never would’ve occurred to me. Thank you!