Kinda worrying about taxes for MFC models...

[AphiaDeMieux]

So i just figured out that MFC models that make over a certain amount will get sent a 1099 form. I didn't here about this until now and i am pretty sure i will be getting sent one. My question is how do you fill it out and what does it do. Will i have to pay a large amount to something? I have no idea how it works and now i'm a little worried that i will have to pay a large amount of money... Help! Thanks!

 

[Serenity_Tam]

You have to pay taxes. You don't get taxes taken out so you pay them.

Tax time is always a cruddy time for those who pay out money at this time of year.

Also. Reminder: know what you sign up for and check the wiki::

http://wiki.myfreecams.com/wiki/Employment_and_Tax_Information

 

[AphiaDeMieux]

You have to pay taxes. You don't get taxes taken out so you pay them.

Tax time is always a cruddy time for those who pay out money at this time of year.

Also. Reminder: know what you sign up for and check the wiki::

http://wiki.myfreecams.com/wiki/Employment_and_Tax_Information

What would be the rule of thumb for paying taxes in a situation like this?

 

[Sevrin]

Try this

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

 

[AmberCutie]

1099 form

how do you fill it out and what does it do.

This form isn't something you fill out. It is a form that shows how much you've made with that company for the calendar year, and you use it to complete your taxes. There will be a section on your taxes that asks for information from either a W2 or 1099, etc.

Sevrin sent a link above for Turbotax. If you use that program to complete and file your taxes, their program will walk you through the steps. The deadline for filing taxes is April 18 this year, but you can complete them any time once you have all of your income documents from places you worked in 2015.

 

[JerryBoBerry]

This form isn't something you fill out. It is a form that shows how much you've made with that company for the calendar year, and you use it to complete your taxes. There will be a section on your taxes that asks for information from either a W2 or 1099, etc.

This isn't directed at the original poster or anyone in particular, just a general comment on 'society' and stuff.

Every year we get a few messages like this at tax time. It's such a common thing for young people freshly out on their own to not have a clue about these things when they are faced with them for the first time.

While I was lucky enough to have parents sit down and explain stuff like this, it seems many do not. I really wish schools in America would teach at least a one semester course on life stuff you're going to need. How to balance a checking account, set up a budget, retirement investing, taxes, renting/buying places to live, insurance, escrow, credit score... all the things every body has to learn to adult in the world.

I hate to say this cause I've taken so much math, but even if schools had to cut algebra or geometry in half to fit in a class like this in, I think it would be of far more benefit to the majority of students. You're 18, just graduating, if young adults don't even know how to do a basic tax return the schools are kind of failing in their main job in my opinion.

Again, not pointed at the OP, just a general thought.

 

[RoseCavilla]

This isn't directed at the original poster or anyone in particular, just a general comment on 'society' and stuff.

Every year we get a few messages like this at tax time. It's such a common thing for young people freshly out on their own to not have a clue about these things when they are faced with them for the first time.

While I was lucky enough to have parents sit down and explain stuff like this, it seems many do not. I really wish schools in America would teach at least a one semester course on life stuff you're going to need. How to balance a checking account, set up a budget, retirement investing, taxes, renting/buying places to live, insurance, escrow, credit score... all the things every body has to learn to adult in the world.

I hate to say this cause I've taken so much math, but even if schools had to cut algebra or geometry in half to fit in a class like this in, I think it would be of far more benefit to the majority of students. You're 18, just graduating, if young adults don't even know how to do a basic tax return the schools are kind of failing in their main job in my opinion.

Again, not pointed at the OP, just a general thought.

I agree. Logic and calculus have literally never helped me in real life. I think a required course in adulting would be a huge help to so many students. I know so many kids who just got their first credit card and have maxed it out or who *shudder * take out pay day loans to buy a car.

 

[AmberCutie]

This isn't directed at the original poster or anyone in particular, just a general comment on 'society' and stuff.

Every year we get a few messages like this at tax time. It's such a common thing for young people freshly out on their own to not have a clue about these things when they are faced with them for the first time.

While I was lucky enough to have parents sit down and explain stuff like this, it seems many do not. I really wish schools in America would teach at least a one semester course on life stuff you're going to need. How to balance a checking account, set up a budget, retirement investing, taxes, renting/buying places to live, insurance, escrow, credit score... all the things every body has to learn to adult in the world.

I hate to say this cause I've taken so much math, but even if schools had to cut algebra or geometry in half to fit in a class like this in, I think it would be of far more benefit to the majority of students. You're 18, just graduating, if young adults don't even know how to do a basic tax return the schools are kind of failing in their main job in my opinion.

Again, not pointed at the OP, just a general thought.

I took 2 Accounting classes in my senior year of HS (elective class, I was going to be a business management major after graduation so it made sense), but outside of that I wouldn't have learned a thing in school about this stuff. Then I went on to Community College and took a Personal Finance class, which helped a load, too. It's unfortunate that learning how to use a bank account, file taxes, etc. isn't part of a regular curriculum for high school students.

 

[JoleneBrody]

My CPA has become the kinda, unofficial camgirl CPA over the last few years and he's amazing and very experienced with industry ladies. To boot his rates are usually lower than HNR block with significantly better results, of course.

This is his twitter.
https://twitter.com/taxxxguy

Oh he has the most adorable website specifically for industry now too!
http://taxxxguy.com/

 

[JerryBoBerry]

While I was lucky enough to have parents sit down and explain stuff like this, it seems many do not. I really wish schools in America would teach at least a one semester course on life stuff you're going to need. How to balance a checking account, set up a budget, retirement investing, taxes, renting/buying places to live, insurance, escrow, credit score... all the things every body has to learn to adult in the world.

I hate to say this cause I've taken so much math, but even if schools had to cut algebra or geometry in half to fit in a class like this in, I think it would be of far more benefit to the majority of students. You're 18, just graduating, if young adults don't even know how to do a basic tax return the schools are kind of failing in their main job in my opinion.

Again, not pointed at the OP, just a general thought.

Alright, someone here is on imgur with username 'LetsGetWeirdinHere', right? Ran across this post, which was just made 23 minutes ago. I know it's an old graphic. Just the timing of seeing it made me chuckle.

 

[JickyJuly]

If you're filing taxes for the first time, I'm venturing to guess that you may be young. If you're 19 or under or a full time student who still qualifies, you will need to give that 1099 to your parents or whichever parent claims you.

 

[VeronicaChaos]

My CPA has become the kinda, unofficial camgirl CPA over the last few years and he's amazing and very experienced with industry ladies. To boot his rates are usually lower than HNR block with significantly better results, of course.

This is his twitter.
https://twitter.com/taxxxguy

Oh he has the most adorable website specifically for industry now too!
http://taxxxguy.com/

I use him and he is great! Camming is a weird new industry that a lot of accountants don't understand and will be very unhelpful with. Many of them won't let you use deductions for things that are clearly a business expense, such as makeup/lingerie/computers/internet/etc. which is ridiculous, seeing as all that is a HUGE expense for most models. He's awesome about understanding our business expenses and saved me way more than he charged.

 

[ramblin]

If you're filing taxes for the first time, I'm venturing to guess that you may be young. If you're 19 or under or a full time student who still qualifies, you will need to give that 1099 to your parents or whichever parent claims you.

This isn't quite right, at least in the US. If you have a good relationship with your parents, by all means work through the paperwork with them. They've been filing taxes longer than you have, and you may be able to share their tax guy/gal if they use one. But as an adult, the system doesn't require you to give any information at all to your parents, just to the IRS.

Taxes are complicated. I am not a CPA. This is not tax advice. Please talk to a CPA like the one Jolene linked. Following is my layperson's understanding:

Your parents can generally claim you as a dependent if you are under age 19, or a full-time student and under age 24, and your parents provide more than half of your support. If your parents claim you as a dependent, you cannot take the personal exemption in your taxes. This is called out as "can someone else claim you as a dependent?" in most software.

If all of these are still true, you file your taxes (without taking the personal exemption), they file theirs (claiming you as a dependent), and that should be that. They don't have to report your income on their taxes, you do report it on yours.

The issue arises if you now do provide more than half your support, but your parents think you don't. In this case you should at least warn them that they can't claim you as a dependent this year. You don't have any legal obligation to share the details. Just "hey, mom/dad I got a great job this year and it paid $xyz and so I think I don't count as a dependent anymore" would be plenty. This will allow your parents to avoid an audit for claiming you when they can't. It may also be a difficult conversation, because it will increase the amount of tax your parents are paying in ways they may not have expected.

Turbotax's rundown on who is or isn't a dependent: https://turbotax.intuit.com/tax-too...-a-Dependent-on-Your-Tax-Return/INF12139.html

 

[HiGirlsRHot]

My CPA has become the kinda, unofficial camgirl CPA over the last few years and he's amazing and very experienced with industry ladies. To boot his rates are usually lower than HNR block with significantly better results, of course.

This is his twitter.
https://twitter.com/taxxxguy

Oh he has the most adorable website specifically for industry now too!
http://taxxxguy.com/

I must say his rate of $199 for filing a 1040 and Schedule C is very reasonable, almost cheap. Camgirl taxes are more complicated than most people with a salaried job. It probably makes sense to cam a few more hours to pay the $199 than it would be to spend the many hours it takes to try and struggle with figuring out your taxes yourself. Plus no way you'll have an orgasm doing your taxes.

I've pretty much always done my own taxes with TurboTax and such, and I do think it is worthwhile for people to understand the basics of the tax system, it has saved me a ton of money over the years. However, I think taxes is more like Adulthood 304, rather than Adulthood 101.

 

[Sevrin]

If you're filing taxes for the first time, I'm venturing to guess that you may be young. If you're 19 or under or a full time student who still qualifies, you will need to give that 1099 to your parents or whichever parent claims you.

That could lead to a really interesting conversation.

 

[ThePioneer]

I use him and he is great! Camming is a weird new industry that a lot of accountants don't understand and will be very unhelpful with. Many of them won't let you use deductions for things that are clearly a business expense, such as makeup/lingerie/computers/internet/etc. which is ridiculous, seeing as all that is a HUGE expense for most models. He's awesome about understanding our business expenses and saved me way more than he charged.

I'm not trying to bash the quality of this guy's work because he clearly knows what he's doing, but it's important to understand that some CPAs are more willing to be far more aggressive with their practices/positions than others. Which is great up until the point you get audited. Just something to consider when looking for a good CPA and why shopping for the biggest return isn't always the greatest idea. Something may clearly be an expense in your eyes, but the IRS doesn't give a fuck. Tax code is extremely complex. Every subsection contains a rule, exceptions to the rule, exceptions to the exceptions, etc.

Also, keep in mind that the burden of proof is entirely on you and your CPA. You need to be able to prove that these expenses are ordinary AND necessary for your business. More importantly, you need to be able to prove that these are business expenses and not personal expenses, and even then you will likely only be able to deduct a percentage of the expense as business. This is why conservative accountants may choose to avoid those expenses altogether if you don't have enough documentation.

It really does pay to have a good CPA, so if anyone is self-preparing your taxes, be careful especially with those expenses in particular because I've seen a lot of bad advice floating around.

 

[HiGirlsRHot]

I'm not trying to bash the quality of this guy's work because he clearly knows what he's doing, but it's important to understand that some CPAs are more willing to be far more aggressive with their practices/positions than others. Which is great up until the point you get audited. Just something to consider when looking for a good CPA and why shopping for the biggest return isn't always the greatest idea. Something may clearly be an expense in your eyes, but the IRS doesn't give a fuck. Tax code is extremely complex. Every subsection contains a rule, exceptions to the rule, exceptions to the exceptions, etc.

Also, keep in mind that the burden of proof is entirely on you and your CPA. You need to be able to prove that these expenses are ordinary AND necessary for your business. More importantly, you need to be able to prove that these are business expenses and not personal expenses, and even then you will likely only be able to deduct a percentage of the expense as business. This is why conservative accountants may choose to avoid those expenses altogether if you don't have enough documentation.

It really does pay to have a good CPA, so if anyone is self-preparing your taxes, be careful especially with those expenses in particular because I've seen a lot of bad advice floating around.

I was somewhat surprised to learn taxxxguy was allowing deductions for makeup and lingerie, since the IRS changed/clarified the rules a few years ago, using the so-called Housewife test. Basically, if it is an item that housewife would normally buy than it isn't deductible. So many accountants would opt to be conservative and not allow them. On the other hand if you never wear lingerie outside of your cam room, deducting it is perfectly defensible. Personally, I tend to favor being aggressive in these gray areas.

First, the chance of being audited are slim. I often have 100+ page tax returns and TurboTax taxes tells me the chance are like 1%. Second even if the IRS does audit you, it will almost certainly be for a specific thing like business deductions. As long as you aren't making shit up like claiming a $2,000 deduction for a Sybian that member bought you, the worse case is the IRS will disallow the deduction. You'll have to pay the IRS, and interest which currently is 5%/year. In rare cases you'll owe a penalty.

 

[EllieGeorge]

Ok, the thing I'm confused about is if Chaturbate and ImLive are going to send me W2s or do I have to print them from their website. I haven't heard anything about it yet.

 

[SaffronBurke]

I was somewhat surprised to learn taxxxguy was allowing deductions for makeup and lingerie, since the IRS changed/clarified the rules a few years ago, using the so-called Housewife test. Basically, if it is an item that housewife would normally buy than it isn't deductible. So many accountants would opt to be conservative and not allow them. On the other hand if you never wear lingerie outside of your cam room, deducting it is perfectly defensible. Personally, I tend to favor being aggressive in these gray areas.

First, the chance of being audited are slim. I often have 100+ page tax returns and TurboTax taxes tells me the chance are like 1%. Second even if the IRS does audit you, it will almost certainly be for a specific thing like business deductions. As long as you aren't making shit up like claiming a $2,000 deduction for a Sybian that member bought you, the worse case is the IRS will disallow the deduction. You'll have to pay the IRS, and interest which currently is 5%/year. In rare cases you'll owe a penalty.

Oddly enough, TurboTax lets me deduct makeup costs. I file under the "performer" code, so it also lets me deduct "costumes" and "props" as well.

 

[Honey Moon]

Had to file last year, was pretty stressful as it was my first time but everything went well. I only cammed 2-3 months the year before so I didn't have to tell my parents how much I made since I didn't make enough to not be considered a dependent.
The only thing that's confusing me now is some models talking about quarterly taxes my brainnnn

 

[Avery_Bradley]

Does anyone know anything about quarterly estimated taxes, or do you all just pay out to the gov at the end of the year?

 

[TacoBelle]

Does anyone know anything about quarterly estimated taxes, or do you all just pay out to the gov at the end of the year?

For the first year that you're camming (or maybe just self-employed in general, I'm not sure), you won't get penalized for NOT paying quarterly taxes. The SECOND year, you will have to pay quarterly or get fined when you file for the entire year (around April or whatever). It looks like you'll only have to pay quarterly if you're an individual who expects to owe tax of $1000 or more at the end of the year OR an Scorp expecting to owe $500 or more.
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

If you're still confused, contact http://taxxxguy.com/ . He breaks it down for you in words we can all understand.

 

[Avery_Bradley]

Thank you for clarifying!