Taxes? sorry if this is the wrong thread

[EveningDreamsMFC]

hey all i'm Lo i'm new on here but i had a question, and i've googled but haven't found an answer!

so i started camming over a year ago but haven't collected any of my money (i kno but i have a spending problem and it's just good to kno i can get it if NEEDED.. and i'm actually trying to make a goal before i pull it out) and i haven't done taxes on it either, but i haven't collected it yet. so do i need to? like am i screwed? lol please help, and be kind

 

[SaffronBurke]

You should be paying taxes, a minimum of yearly, though people also file quarterly. I personally just file yearly, but I have a W-2 job and cam very part time. You're not "screwed" necessarily, but you may have to pay fines. Get a CPA and have them help you, they are going to know much more about tax law than anyone here.

 

[ElaySmith]

I believe technically if you make under 10k/year you do not have to file taxes....but I am not sure how this works when dealing with w2's vs 1099's etc. It is definitely worth it to talk to a professional when dealing with taxes, but in general if you are earning money and receiving 1099's through the websites you work on, you need to file. Don't freak out....set up an appt with a cpa, gather all your receipts that are cam related (clothing, lighting, cams/equiptment etc), you can even right off a portion of monthly expenses (electricity/internet) for your cam space. After figuring out all your deductions/writeoffs etc if the amount is still to high to pay don't worry. Contact the irs and set up a payment schedule, as long as you are making an effort to pay they are usually more than willing to work with you.

ps. when finding a cpa it is probably worth it to call around and find somebody that has dealt with sex workers before.

 

[SMuser69]

I believe technically if you make under 10k/year you do not have to file taxes....but I am not sure how this works when dealing with w2's vs 1099's etc. It is definitely worth it to talk to a professional when dealing with taxes, but in general if you are earning money and receiving 1099's through the websites you work on, you need to file. Don't freak out....set up an appt with a cpa, gather all your receipts that are cam related (clothing, lighting, cams/equiptment etc), you can even right off a portion of monthly expenses (electricity/internet) for your cam space. After figuring out all your deductions/writeoffs etc if the amount is still to high to pay don't worry. Contact the irs and set up a payment schedule, as long as you are making an effort to pay they are usually more than willing to work with you.

ps. when finding a cpa it is probably worth it to call around and find somebody that has dealt with sex workers before.

If anyone pays you more than $600 in a year they are supposed to give you a 1099-misc. Assume whenever you receive a 1099 that that entity has reported your income from them to the IRS.

What you're probably referring to is the minimum annual income before you need to file a federal tax return. But you only need $600 before you have to file a state tax return.

of course this is all assuming the OP is in the US.

 

[ElaySmith]

If anyone pays you more than $600 in a year they are supposed to give you a 1099-misc. Assume whenever you receive a 1099 that that entity has reported your income from them to the IRS.

What you're probably referring to is the minimum annual income before you need to file a federal tax return. But you only need $600 before you have to file a state tax return.

of course this is all assuming the OP is in the US.

Thanks for clearing that up. Like I said I wasn't sure as I have never personally been in that situation. Either way the rest of my advice stands, find a cpa that deals w/sex workers, it really is one of the best things you can do for yourself if you plan to make a career out of this industry.

 

[SaffronBurke]

I believe technically if you make under 10k/year

I'd always heard $600, because that's the amount that they issue a 1099 for. You're officially supposed to report EVERYTHING, even money you make on eBay/Craigslist selling old shit, but unless you're making more than some spare change doing that I wouldn't bother.

 

[Sav1996]

I opened a savings account that pulls 25% out of every deposit automatically to save for taxes, I think most banks have an option like this.

 

[EveningDreamsMFC]

I'd always heard $600, because that's the amount that they issue a 1099 for. You're officially supposed to report EVERYTHING, even money you make on eBay/Craigslist selling old shit, but unless you're making more than some spare change doing that I wouldn't bother.

thank you so much! i haven't even received it and it isn't very much at all. thank you all so much for your helpful responses

 

[ramblin]

so i started camming over a year ago but haven't collected any of my money

If you earned over $600 from MFC in 2016, never cashed out, and MFC did not send you a 1099, then it sounds like their understanding is that they haven't paid you anything, so you don't owe taxes. I am not a lawyer or tax professional, but I think this is a very defensible position. The argument is that while you provided services, you have not yet been paid. MFC is not holding cash money in custody for you as your bank, tokens have no legal value, so you haven't earned anything. This would mean that you earn income when and if you cash out, and need to pay taxes at that time.

Talking to a CPA is definitely the safe way to go, but if you didn't receive any money, you file saying you didn't receive any money, and MFC files saying they didn't give you any money, I don't see an issue.

 

[Ms_Gingersnatch]

I am not a tax professional, and you need to check with someone who has professional qualifications, but I believe that your taxable earnings for a year may be based on money that was actually paid out to you during the year. For example, if I were at a standard job and worked the last two weeks of 2017, but wasn't issued a paycheck for those weeks until the first Friday of January 2018, that paycheck might part of 2018's earnings, not 2017's. So it's entirely possible that @ramblin is right and your tokens don't count as earnings until they are cashed out and issued to you.