BoleynModels Taxes Guide and FAQ
for U.S. Cammodels (2015 edition)
Please note that this is for U.S. cammodel tax situations only. While some info may pertain to other countries, tax laws differ wildly – especially in regards to filing requirements, what is and isn’t deductible, and your legal rights as a taxpayer.
Very Important Also – Tax situations vary wildly from person to person. Opinions on how to file your taxes and deductions also vary wildly between tax professionals. We are VERY conservative in what we do…we like to play it safe and keep people out of trouble. Many people go into the CPA field because they enjoy helping people stick it to the government…which is a perfectly valid opinion also. However, DO NOT take tax advice from someone who cheated and may be winning at the time or is not otherwise qualified to give advice. Fellow cammodels that knew a guy or think its how it works do not qualify as tax professionals…there are many cammodels with tax certifications though 🙂
If you are a non-U.S. taxpayer, we can still assist you with any information you require to file your taxes in your native country.
Why should I file my taxes?
- If you made over $400 in independent income, it’s the law.
- It helps you maximize your tax credits (especially healthcare and EIC) and may help you get some money back.
- Your tax return is an official document useful for a number of purposes.
What is a 1099?
A 1099-MISC is a legal acknowledgment between two parties for total earnings paid to contractors over the course of the year. No other record is really necessary for earnings covered by a 1099…it is concrete provided that all earnings paid by the issuing party are included in the 1099 total.
What about companies that don’t issue 1099’s?
U.S. companies and persons are REQUIRED to have a 1099 in your hot little hands by January 20th if you earned over $600 with them.
If you earned less than $600 OR the company is not U.S.-based, you must still report 100% of those earnings on your Schedule C. In Turbotax, look for the “other income” category and make a line item as follows:
Official Company Name (find it on their website), including their suffix (“LLC” and “Ltd” are common) as the source. Then fill in the total amount.
Individual clients need not be listed in this way, follow the procedure under 4 (“Gifts”) for them if they paid you via “off-site” methods.
Are “gifts” counted as income for cammodel taxes?
Anything (at all) received from a client in the course of your work is taxable income and should be included on your Schedule-C. In most cases this is inclusive to your website earnings and if you behaved then you don’t need to worry about this at all. However, many models accept gifts and cash “off the books” and this is where it applies. This includes payments on Paypal marked as “friends or family”, Amazon gift cards, any time a client picks up your tab or pays a bill on your behalf, or sends you an item with a known catalogue value.
Note that marking something as a “gift” does not make it so. If it is from an employer, client, or business partner it is compensation for your services. Yes, even if it was your birthday…the IRS doesn’t exempt birthday presents on your say-so.
You don’t need to report anything from a single client if he spent under $25 for the year total off the books. If the total value of gifts and compensation (i.e. regular payments) from that client exceeds $25 in that year, everything (from that client) becomes taxable income.
On your Schedule-C, under “Other Income”, put the following:
- Client Gifts – Amazon Gift Cards
- Client Gifts – Merchandise
- Client Gifts – Giftrocket
- Client Gifts – Paypal
- Client Gifts – Bills paid
After each of those, put the total cash value for each category.
Note that the IRS doesn’t care what your business is really, just that you pay your fair share of taxes. In Iowa we had special tax stamps for weed dealers to put on their dime bags…just sayin’.
What is my job code/category for my home business?
If camming is your only source of income as part of your home business, then the code: 516110 (Internet Publishing and Broadcasting) is appropriate.
Do I need a CPA?
Most “normal” cammodels do not need the extra expense of a CPA. TurboTax (for Home Business) is more than enough for your tax needs. However, we do highly recommend getting professional help for more complex situations such as:
- If you wish to take over $1000 in “housewife” business deductions (see below).
- If you or your spouse own real estate.
- If you and your spouse’s earnings exceed $112,000 total.
- If you owned/operated multiple small businesses throughout the year.
- If you have a large amount of medical expenses, special medical needs, or non-standard dependents (not your regular kids).
What is deductible as a cammodel*?
- Home-office credit – If you have a bonafide work space in your home, you can follow the calculations and deduct what is appropriate. This can include a portion of your rent, utilities, and internet bill. Even without that, you are still eligible for a simple “flat deduction” ($250 in 2014, may be more now).
- Computer Software/Hardware – This includes computer and broadcasting equipment such as routers, cameras, webcams, lighting, printers and scanners, upgrade and repair costs, business software (ManyCams, Microsoft Office, etc). You have a choice whether to deduct 100% up front (recommended) or deduct part of the cost over the life of the item. You MUST have the receipt for the item for it to be safely deductible, and it must have been purchased in the 2015 calendar year.
- Internet Expenses – This includes domain hosting fees, domain registration fees, and any extras charged by websites for their services toward your business. Billing for your actual internet connection is included in your Home-Office deduction.
*Note: If you do other types of adult work outside your home (such as dancing, massage house-calls, or actual porn set shoots), then some additional things can become safely deductible (such as travel, stage makeup, and costumes). Consult a tax professional.
These items don’t or won’t pass the “housewife test”, and will be heavily questioned or thrown out in an audit. If you have a large amount of these items ($1000+), use a CPA to do your taxes and let them sign off on what they think is appropriate. Otherwise, don’t even risk it.
- Toiletries, Wipes, Lube
- Make-up and other cosmetics
- Lingerie and Fetishwear, Sex Toys and BDSM Gear
- Cosmetic Surgery, Body modification, Tattoos
- Spa Treatments, Tanning, Hair and Nail Treatments
What if I owe and can’t pay?
Repeat this mantra “I will file on time.” April 14th is the deadline. Even if you owe and can’t pay the full bill at the moment, you should still file. You will be put on a relatively easy payment plan with just a tiny fraction in interest penalties (less than a credit card).
Failure to file on time while owing is a very bad thing. Minimal penalties can be in the $100’s monthly, along with very high interest rates for back taxes owed.
The same applies if you cheated in previous years and decide to come clean on your own. The penalties will be miniscule if you add previous years “missing earnings” to this year’s taxes (Turbo Tax will prompt for this) than if the IRS decides to do a fishing expedition at your expense.
Do I need to file quarterly?
If you end up owing taxes as a cammodel for the year you will generally need to file quarterly. TurboTax will walk you through the process of creating your quarterly receipts OR you can go to IRS.gov and work through their online worksheet. If you received a refund this year and didn’t pay quarterly, generally you won’t need to do so next year.
What is the best way to file my taxes?
For the vast majority of cammodels, we highly recommend Turbo Tax Home Business edition (standalone version). It will walk you through the steps and file them for you on the spot. This is also similar to the edition we use, so if you get stuck we’ll be happy to help you out via our support.
If you have an extremely complex picture of your earnings and taxable assets, then we recommend seeking out a local CPA to assist you. Keep in mind what may be complicated to you is very simple for your taxes, and vice versa.
HALP!!! Other people do my taxes (or claim me on their taxes) and I don’t want them to know I’m a camgirl!
Good luck with that. If you’re a big enough girl to do adult work, you should take responsibility for your taxes…either through a licensed professional or getting some easy tax software. Our own 1099 is from a generic web marketing firm, so tell them it was for anything you wish.
Cheating and why it doesn’t work.
Just like Microsoft has the annoying habit of linking together all your friends and contacts from everywhere, big government has basically created the same system as part of the ACA (aka Obamacare, Healthcare Act) reform for your money. All financial institutions (especially foreign, such as Payoneer) must report your financial activity to the IRS in one form or another. Even non-financial institutions, such as Amazon or Steam, must report receipt of store credit (gift cards) over a certain amount. Your credit history is also factored in.
You can say that your income and spending and savings are correlated together to figure out your risk category for cheating the tax man. If you’re saving and spending more than what you report on your taxes, they start digging a bit deeper. After this, they’ll send a letter to you stating what they think you owe based on all their records – and if you don’t have good records then you have no way to fight. Keep in mind they can do this up to 7 years later, and go back multiple years. If you are found to have been conspiring to cheat the system, you could also be eligible for Federal prison time – generally this doesn’t happen though as prisoners can’t pay their hyper-inflated tax bills.
Also keep in mind that IRS auditors get bonuses and incentives to recover money on their behalf. They have zero interest towards deciding things in your favor, playing loose with the deduction rules, or helping you organize (or track down) your records. Don’t ever count on “talking your way out of it” later…auditors are a special breed of robot, more Terminator than Barney Fife.