I'm a dependent, my parents don't know I webcam, and I'm gonna need to file taxes. HELP!

[AvaCharlotte]

I need advice on what to do. I'm 19, I live with my parents and go to college. They claim me as a dependent each year. As far as they know, I don't have a job, but I'm working on Chaturbate, FanCentro selling my SC, and selling custom content through Reddit. I'm making enough that it is extremely likely I will need to file taxes at the end of the year. Is it possible for me to do this without them knowing, and where can I go for help?

I'm trying to move out ASAP with my boyfriend, but they know he's broke like I supposedly am so they're going to be wondering how we're affording it. I'm working on ideas for that. Really any advice here in general is appreciated. I'm really freaked out about taxes because I have no clue how to file. If there's no way to do it without them knowing then I'm gonna need to make a pretty big decision. Honestly, I don't care if anyone in the world knows I webcam except my parents. If I do end up telling them, I would at least prefer to be moved out. I don't think I can go through that while I'm living with them.

Do y'alls parents know about your webcamming, and if so how did you tell them and how did they react? If they don't know then how do you hide it from them? I hope I'm not the only one doing this while living with my parents, but I might be.

 

[cbhours]

I don't see why you wouldn't be able to file without them knowing but you can't claim yourself you would need to pick the option for "I can be claimed on someone else’s return" because otherwise IRS is going to reject someones return depending on who filed second. I think they will also send notices to both of you (edit: i mean send you notices if one is rejected) but I don't know im not a tax professional and i've never been in the situation. You can talk to a local tax professional and explain the situation.

Cb is going to send you a 1099-MISC form in the mail though its going to say multi media llc on it. If they see that and do a little googling then they will likely figure out that you are a model.....well I suppose you could claim you are an affiliate marketer taking advantage of cb's super generous 20% rev share program but I don't know how well they would take that either.

 

[L_Edward]

I don't see why you wouldn't be able to file without them knowing but you can't claim yourself you would need to pick the option for "I can be claimed on someone else’s return" because otherwise IRS is going to reject someones return depending on who filed second. I think they will also send notices to both of you (edit: i mean send you notices if one is rejected) but I don't know im not a tax professional and i've never been in the situation. You can talk to a local tax professional and explain the situation.

Cb is going to send you a 1099-MISC form in the mail though its going to say multi media llc on it. If they see that and do a little googling then they will likely figure out that you are a model.....well I suppose you could claim you are an affiliate marketer taking advantage of cb's super generous 20% rev share program but I don't know how well they would take that either.

I found this link. It may be helpful.

How do I properly file taxes as a webcam model?

I received a 1099-MISC form from the webcam studios that I worked for and I want to know what form I should fill out to properly report my earnings and tax write-offs. I saved receipts from things that I had to purchase specifically for my webcam shows that I was told by a fellow webcam model...

ttlc.intuit.com

 

[AudriTwo]

you should probably get your parents to stop claiming you as a dependent if they aren't paying for school or you are using their earning for student loans. if they are doing these things, you need to either tell them, or quit camming.

move out of your parents house. tell your boyfriend to get a job anywhere if he doesn't already have one. maybe you get yourself one too to help the transition. https://ratracerebellion.com for non-sexwork work at home if jobs are slim pickings in your area or if you are unable to physically work.

 

[Danigirl]

You have half the year to move out and sort out the issue. If you’re worried about them finding out, consider a part time vanilla job to help CYA and don’t give them any info from that w2. If they claim you or try to claim you as a defendant they still have to answer if you made any income so they will not be able to file claiming you without that info (for the vanilla job they know of). That sort of saves you as you can make sure you file first with your social and they can’t claim you. Make sure you claim all your income (amounts from various sources $500 and up especially) because when you file using the w9s/1099misc you’re more likely to get audited.

As a side note, make sure you save money. I would recommend saving at least 40% of your income for tax purposes. It’s brutal if you make a decent amount. Worst case if you don’t owe as much as you thought you’ll have savings. Savings are very important as the business has ebbs and flows naturally and you don’t want to do anything you truly aren’t in to for money.

 

[MrSwoob]

I read this thread and thought, why could she not set up a LLC and just put the income from camming into that. Name the LLC some generic business or AvaCharlotte Business Services LLC. There is some upfront cost to do so but relatively easy. It can be as simple as going to your state website and setting up a LLC for minimal cost. You can use a servicce and that can also be beneficial since you can set up a lawyer to be your legal address and then your home address is not given out publicly. This can also help with potential privacy down the road if you continue in SW. You also get tax benefit of expenses for an LLC that will eventually pay for the upfront cost due to tax savings. You set up the LLC, set up a business checking acct (find the cheapest business checking in your area) I would also set up quickbooks self employed online to keep track of income and expenses.

I am just a guy that likes camgirls, but i have set up a couple of LLC's and that is a great way to cover a self employment even for small incomes for side hustles of 5-10k. Ava can tell her parents that she is working freelance as a Digital Administrative Assistant or Freelance web design, digital coding. medical transcription or whatever. Just a thought, but like I said I am not a camgirl so my perception may be off. If her parents get nosey she just shows the quick book files of her freelance work. XXXX Business Services LLC

Just my 2 cents

 

[Danigirl]

LLCs aren’t a bad way to go but in this case I think she just needs to get out of the house haha. I couldn’t imagine living at home and camming while trying to hide it. Way too much stress. Aaaand as a parent, I would totally question my 19 year old daughter setting up an LLC vs her trying to become more independent, getting a job and filing taxes as an adult should. The second option just sounds way more normal and I would be more proud as a parent than questioning. I would question the shit out of her setting up an LLC out of the blue.

 

[MrSwoob]

LLCs aren’t a bad way to go but in this case I think she just needs to get out of the house haha. I couldn’t imagine living at home and camming while trying to hide it. Way too much stress. Aaaand as a parent, I would totally question my 19 year old daughter setting up an LLC vs her trying to become more independent, getting a job and filing taxes as an adult should. The second option just sounds way more normal and I would be more proud as a parent than questioning. I would question the shit out of her setting up an LLC out of the blue.

Hmm I help my kid set up a LLC right out of HS. So different strokes for different folks

 

[Danigirl]

Hmm I help my kid set up a LLC right out of HS. So different strokes for different folks

Yeah but did your kid work in a sex industry?? Sure setting up an LLC for a lawn business or whatever is great and I’m sure your child appreciated the help but from what I gather she is trying not to have them know. However she files, I was trying to give a plausible way out that wouldn’t alert the parents.

 

[MrSwoob]

Yeah but did your kid work in a sex industry?? Sure setting up an LLC for a lawn business or whatever is great and I’m sure your child appreciated the help but from what I gather she is trying not to have them know. However she files, I was trying to give a plausible way out that wouldn’t alert the parents.

Yeah but did your kid work in a sex industry?? Sure setting up an LLC for a lawn business or whatever is great and I’m sure your child appreciated the help but from what I gather she is trying not to have them know. However she files, I was trying to give a plausible way out that wouldn’t alert the parents.

Valid point

 

[Lintilla]

I read this thread and thought, why could she not set up a LLC and just put the income from camming into that. Name the LLC some generic business or AvaCharlotte Business Services LLC. There is some upfront cost to do so but relatively easy. It can be as simple as going to your state website and setting up a LLC for minimal cost. You can use a servicce and that can also be beneficial since you can set up a lawyer to be your legal address and then your home address is not given out publicly. This can also help with potential privacy down the road if you continue in SW. You also get tax benefit of expenses for an LLC that will eventually pay for the upfront cost due to tax savings. You set up the LLC, set up a business checking acct (find the cheapest business checking in your area) I would also set up quickbooks self employed online to keep track of income and expenses.

I am just a guy that likes camgirls, but i have set up a couple of LLC's and that is a great way to cover a self employment even for small incomes for side hustles of 5-10k. Ava can tell her parents that she is working freelance as a Digital Administrative Assistant or Freelance web design, digital coding. medical transcription or whatever. Just a thought, but like I said I am not a camgirl so my perception may be off. If her parents get nosey she just shows the quick book files of her freelance work. XXXX Business Services LLC

Just my 2 cents

She could lie about the original source of the income and create fake/fraudulent books regardless. Am I missing the part where this is clever and requires an actual (probably not yet advantageous) LLC somehow?

 

[AvaCharlotte]

Thank you guys so much for the suggestions! Moving out is definitely my priority right now because it IS extremely stressful keeping this up while living with them, but I'm nervous to go ahead and do it until I have a good amount saved up, and this whole tax thing is making me even more nervous to be taking up the responsibility of rent when I still don't even know how tax season is going to go. I have decided to go talk to an accountant for sure and tell them everything that's going on plus some of the ideas mentioned here, but another thing someone else said to me is that I could get my boyfriend verified on CB and have HIM accept the payment, then just send it into my bank account. However if I do that I honestly will probably hire an accountant to make sure I'm tracking everything well and know what I will be paying at the end of the year, since the taxes will be on him and I don't want to accidentally screw him. Does anyone know if this idea can work?

My boyfriend does have a full time job, and together we can easily afford a place, it's just that my parents will question it because they don't even know I work. I will probably tell them my boyfriend is covering the entire rent and also has a friend that will share with us.

 

[AvaCharlotte]

Another thing is if necessary, I CAN back off of webcamming and Manyvids and try to keep my income under the taxable amount and just shift over to custom content, but I don't want to have to do that unless absolutely necessary because I have been very successful with my webcamming and am not a fan of custom. Plus, I don't think I would be comfortable moving out on just my income from custom content, which kind of ends up keeping me in this loop. On the flip side, if I keep going with my webcamming the way I am going I think I might end up making too much to be claimed as a dependent, but again I know nothing about taxes and I'm not sure.

 

[MrSwoob]

another thing someone else said to me is that I could get my boyfriend verified on CB and have HIM accept the payment, then just send it into my bank account. However if I do that I honestly will probably hire an accountant to make sure I'm tracking everything well and know what I will be paying at the end of the year, since the taxes will be on him and I don't want to accidentally screw him. Does anyone know if this idea can work?

I am always concerned when couples combine funds before being legally married. Having a shared acct to handle household expenses is one thing but your income going into his acctt under his name, it actually is no longer your money it is 100% his. You have limited rights to it. If things go south you would have to go to small claims court to get money back and that has limits. (think judge judy). It is just risky, it could work but it could also backfire.

 

[AvaCharlotte]

I am always concerned when couples combine funds before being legally married. Having a shared acct to handle household expenses is one thing but your income going into his acctt under his name, it actually is no longer your money it is 100% his. You have limited rights to it. If things go south you would have to go to small claims court to get money back and that has limits. (think judge judy). It is just risky, it could work but it could also backfire.

We've been together for a while and I trust him a lot but I do understand the concern. I'm pretty sure that if necessary I could just go back on CB and just switch the payment back to my acct fairly easily, but he would just be basically sending the money right over to me on pay day when it gets to him. I don't think he would have rights to the money after he's transferred it to my account?

 

[MrSwoob]

We've been together for a while and I trust him a lot but I do understand the concern. I'm pretty sure that if necessary I could just go back on CB and just switch the payment back to my acct fairly easily, but he would just be basically sending the money right over to me on pay day when it gets to him. I don't think he would have rights to the money after he's transferred it to my account?

You are correct

 

[Danigirl]

Have you made more than $400 from one source already?

 

[JoleneBrody]

I would suggest you speak to a cam industry experienced CPA like taxxxguy.com (he is probably the most widely used, he’s been my CPA for many many years) so he can advise you how to line up your ducks.

 

[THE MOLLIE MARIE]

I CAN back off of webcamming and Manyvids and try to keep my income under the taxable amount and just shift over to custom content

Perhaps I am misunderstanding but the way you wrote this, it sounds like you are not planning to report income from custom content. Is that right? Why might that be? It is our responsibility to report all of our income, even if you do not expect to owe tax on it, even if you do not receive a 1099 for it.

 

[LooksLikeGreg]

You have half the year to move out and sort out the issue.

More than half a year till April 15, 2020, and longer than that if you file an extension. The first is automatically granted and the second -- out to October 2020 -- frequently granted. You would have to send along a check for the taxes you believe you owe, but you'd have as much as 15 months to figure out your approach. Good luck.

 

[AvaCharlotte]

I would suggest you speak to a cam industry experienced CPA like taxxxguy.com (he is probably the most widely used, he’s been my CPA for many many years) so he can advise you how to line up your ducks.

Thanks so much for that suggestion! I had no clue something like that existed so I will definitely look into him.

 

[AvaCharlotte]

Have you made more than $400 from one source already?

I have off of Chaturbate, why? Is that the limit to where I need to pay taxes?

 

[AvaCharlotte]

Perhaps I am misunderstanding but the way you wrote this, it sounds like you are not planning to report income from custom content. Is that right? Why might that be? It is our responsibility to report all of our income, even if you do not expect to owe tax on it, even if you do not receive a 1099 for it.

I could be wrong but I don't think reporting is the issue, I think that if it's not enough to pay taxes on then it shouldn't conflict with anything my parents are doing. That's just my assumption.

 

[Danigirl]

I have off of Chaturbate, why? Is that the limit to where I need to pay taxes?

Just means you’ll already definitely have to report those earnings with your taxes even if you don’t have to pay any tax.

 

[AvaCharlotte]

I've contacted the guy that Jolene recommended and told him my situation over email. He is calling me in a moment. I'll keep you guys updated! Feeling much more calm and hopeful. If nothing works out though, you might see me posting a thread a little later this year about how to explain this to my parents lol

 

[AvaCharlotte]

Okay so he seemed super cool and was really nice and made me feel a lot better. I told him I've been holding back a bit on Chaturbate because I've been so afraid of handling the taxes, but he said what I should do is go ahead and just start going hard at it to make enough money to move out, then convince my parents not to claim me as a dependent before the end of the year. He said it shouldn't be hard because most likely it will be more beneficial to me to be independent than for them to claim me as dependent, so they will likely see the logic in it. Plus if I am moved out I can lie about having a different job. He also said I can stay in contact with him for any questions. Thank you so much guys!