How Do Cam Girls Pay Taxes?
I recently started working as a webcam model for a US based cam modeling site. They send out a 1099-MISC form to their all models that make $600+ per calender year. Can someone please advice me on how exactly I file taxes.
Also, is it mandatory to apply for a business license? Will I get in trouble if I don't?
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1099-MISC means that you weren't an employee, but a contractor. You would fill out schedule C as self-employed. It's possible that you owe taxes, including self-employment tax. If you're down near that $600 figure, then you might now owe taxes at all. Fill the form out and see.
Also remember that as a contractor, no one is saving for your future except yourself, so I'd suggest putting 10% of your income into an IRA or other long-term savings. Low income, might as well make that a Roth IRA.
Form 1040, schedule C or C-EZ and schedule SE. You'll show your income and any allowable expenses on the schedule C, then carry info from there to SE and fill that out, then from both schedules to the 1040 and finish the rest of that form.
Whether you need a business license depends on where you live.
Business license is probably not needed, but wouldn't be a bad idea. It would only cost about $75.
As far as taxes go, you will need to prepare your taxes as "self employed" by filling out Schedule C along with 1040.
file this income on Sch C and probably SE as well
the business license will be dependent on your local business licensing agency
If you are real succe$$ful, you need to make quarterly tax deposits.
www.irs.gov and query self-employed and read up. You can also mail away for the booklets (if they are no longer available in your public library).
idk about the business license. seems like the cam company should tell you.