Let’s talk Income tax!

[Gia666]

I’m sure this has been addressed before on here.
But I’m just looking to do my income and state taxes for 2019.
I know as a web cam model we are independent contractors and have to pay self employment taxes as well as regular income tax.
I paid a large portion of my tax in estimated taxes already. However, as I was working thru turbo tax today, was shocked how much federal and state tax I still owe. I worked full time all of 2019. However, I am not a big income earner. Any tips on tax breaks? Do other models do a lot of deductions? If so ,what works for deductions? Trying to lessen the big amount I owe

 

[JustMilfnAround]

Hi

That is very good that you paid your estimated taxes and should bring you some relief.

Filing taxes as self employed is harsh. When you work for someone else, they pay half of what you pay in for Medicare, Social Security, etc.... Self employed you pay all of it.

You CAN deduct up to 300sf of your home for the "home office" deduction which I believe comes out to about $1500

Simplified option for home office deduction | Internal Revenue Service

Beginning in tax year 2013 (returns filed in 2014), taxpayers may use a simplified option when figuring the deduction for business use of their home

www.irs.gov

You CAN deduct up to 20% of your utilities (power/internet and phone if you do PSO/Texting).

The Home Office Deduction

An unprecedented number of workers and businesses have transitioned to a work-from-home model. If you work from home, you should know these important tax implications of setting up a home office.

turbotax.intuit.com

You can claim outfits/toys/hardware like computers/cameras etc.... Anything that you use to make income can be deducted. If your members send you gift cards and you use them for "work stuff", you can claim that expense as well even if it's a gift. Anything that is "ordinary and necessary" for your job can be deducted.

This will save your ass at tax time. Of course talk to your tax professional before making any decisions on your own while filing. Self employed tax filing is a brutal pain in the ass so get help if you aren't sure. I'm giving you MY experience and what I do/have been told by an industry CPA. Do your due diligence!!!

 

[SaffronBurke]

Also, remember that you don't have to pay taxes all at once! You can make a payment arrangement and make monthly payments.

 

[Marceline]

You CAN deduct up to 300sf of your home for the "home office" deduction which I believe comes out to about $1500

You can only use part of your rent/mortgage as a home office deduction if you have a space set up that is only used for work, like a complete separate room just for camming or filming. If your house or apartment is only one bedroom you can't write it off, because your work space is also your living space.

You can claim outfits/toys/hardware like computers/cameras etc.... Anything that you use to make income can be deducted. If your members send you gift cards and you use them for "work stuff", you can claim that expense as well even if it's a gift. Anything that is "ordinary and necessary" for your job can be deducted.

I personally wouldn't use things I bought with a gift card as a deduction unless you're claiming the gift cards as income. I dunno, when doing my taxes I always err on the side of caution because although it's not highly likely that I'd be audited, if it ever did happen I'd have to prove that everything I wrote off was used ONLY for work, and when it comes to outfits and makeup and stuff of that sort it gets a little tricky.

 

[JoleneBrody]

Save yourself the headache and get a CPA. I recommend taxxxguy.com he specializes in cam models and has done mine for over 8 years

 

[AmberCutie]

I personally wouldn't use things I bought with a gift card as a deduction

Back when I had an Amazon wishlist, this is one of the reasons I only put a small amount of sexy work stuff on the list. I'd rather buy that stuff myself and write it off, and use a wishlist or gift cards simply as gifts that I can enjoy in my personal life. It was much more fun that way anyway! My most fun gifts were an electric tea kettle and an electric griddle