Are cam girls really paying taxes? Well, at least the ones who don’t want to get on the IRS’s bad side do. Camming is just like any other job, so as your top-dollar incomes hit your account, a certain percentage of those (depending on the country you live in) has to find their dwelling place in the government’s funds. As the old saying goes “The only things certain in this life are death and taxes” – and it’s 100% true. Wherever you might live on Earth, there is a revenue service that will start snooping around your business when it notices you haven’t been paying your camgirl taxes.
The main discrepancy between a regular job and the online performer job is that most streaming websites will treat you like the independent contractor you are. This means that the platforms in question will not be withholding any taxes on your behalf to pay your federal or state taxes – it is all up to you. Nothing gives you more adulting 101 vibes than being your own accountant, isn’t it? Good to know we’ve prepared a comprehensive guide that acts like that best friend who will help you survive the tax season with as little headache as possible.
To pay or not to pay?
Depending on the country you live in, the law states that all independent earnings over a certain amount of money need to be taxed. If you don’t, somewhere down the line, revenue services will find a means to reach you and will hold you accountable for not paying your taxes in time. The lamentable consequence? Late penalties will punch both you and your bank account in the face. Not to mention that if you draw the short end of the stick, the audit will be on the house.
Paying taxes with professional help
Possibly, especially if you have no clue about how the whole taxes hustle works. Besides providing you with professional advice and help, an accountant is also a permanent reminder to save up for your taxes in order to pay them – so, you basically get the best of the both worlds. While it is not mandatory to call up a professional and ask for their help, it can give you that peace of mind by easing the headache of getting around taxes.
If you have some extra free time, you can do a little bit of research on financial consultants specialised in tax preparation for those in the adult industry. Yes, they exist and they are a call away. You don’t have to worry about going to an HR block this way – you already know from the get-go that the account is comfortable with your job.
Save your receipts
The beauty of being self-employed is that you can write off a lot of your expenses, but only those that you used directly for camming. If you purchase anything that is related to your online performer business, such as video equipment, lighting, internet provider or even make-up, keep all of the receipts. There are many items that can be perceived as a business expense, so depending on where you live, those are either not taxed or subject to write off.
Take this following scenario as an example: if you have a dedicated room solely used for your job that measures 100 sq ft and your home is 1500 sq ft, this means 7% of your house is used specifically for your business. In this case, you should be able to write off 7% of many expanses such as the electricity bill, heating bill and so on.
There is nothing that a few espressos, an agenda and some vibrantly coloured sticky notes can’t cure. Keeping track of all your expenses throughout the year should be your daily mantra, so that you’re not scrambling to find things at the last minute. Gather all your expenses and receipts sooner, rather than later. This will save you a big headache at tax time. If you hire a tax preparer, most will not want you to send them all your tax documents. Instead, they will ask for your “totals” regarding different expenditures.