so this is for the perfomers
at my studio they dont take out taxes, so at the end of the year i have to pay taxes i was told

should i only put away a little money from pay checks
or are you other models having to cough up alot of money to pay taxes? Quote

Im new to doing these taxes too. I was wondering the same thing from the other models. I live in california and from what I have seen and the taxes here you should put away $350 for every $1000 you make. Of course Cali is very high with taxes so you might only have to put $250 away for every $1000. So models who have been doing this awhile, what do you think. Also I believe you can write off a lot of things that you use for your job. I will be doing my taxes soon too Quote

well my studio manager told me to put away like 10$ from every paycheck..idk....i just want to make sure im putting away enough money so i dn't hve to cough up a bunch of money when taxes are due next year Quote

Lilly , sorry i hate to intrude but if you have a employer then you must of filled out a W-4 . On the W-4 you can have any amount taken out of your paycheck and will be deposited with I.R.S. .The employer has to take out for S.S. and F.I.C.A. . If u work by your self and do not have employer that a different issue. I would talk to the I.R.S. about this issue it smell fishy to me
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well she sends me this pay stub like thing and said that she doesn't take any of the money out
and i did fill out a w4 or it might have been a w2..idk the difference
she said that i will have to do all the taxes for it at the end of the year and give money for my taxes

hmf Quote

First of all, I AM NOT AN ACCOUNTANT. What I say here is purely from my own experience, not from study or occupation.

I believe that anyone working at a site like this is considered an "independent contractor." That means you aren't technically an employee of this company. You set your own hours, decide how you'll work, etc. They don't pay benefits, and they don't pay taxes.

I'm a computer nerd, and have at times worked as an indepent contractor. (And I promise you, my work was every bit as exciting as yours.) What this meant, though, was that I was responsible for paying ALL of my own taxes. The company just wrote me a check. (Keep in mind that they also send the gubmint a form that tells the IRS how much money they paid you, so don't think you can under-state your income.) In January, you should get a W-9 or something like that that will tell you what the company thinks they paid you for the previous tax year.

Here's how taxes typically break down:

Federal taxes: Anywhere from nothing (if you're poor) to about 15% for most, I think, up to about 28% if you make over some number in the area of 80K a year after deductions, etc.

State taxes: Varies by state. Yep, California really bones ya here -- isn't it around 8%? I could be way off on that.

Various other stuff also comes in to play. The BIG one, though, that really nails independent contractors (and prospective cabinet appointees) is the tax for Social Security (I think it's listed as FICA on an employee's pay stub.) When you are an employee, your employer pays half, and the employee pays half. It's 15% at this point, I think. So that means an employee pays 7 and a half percent. BUT, because you're both your own employer and the employee, you pay the full 15%.

So, let's be optimistic and assume you're making beau coup cash. That means you're on the hook for 28% + 8ish% + 15%. It's a LOT, assuming California, and not a lot less elsewhere. Given that, the rule of thumb I heard was you need to set aside HALF of each paycheck to make sure you can cover your taxes. The good news is that if you saved too much, you've got a nice stash in the bank.

Now, deductions and stuff can help a lot. As independent contractors, you're responsible for everything you use to do your job. Your lingerie, your toys, your camera, your ISP, your cell phone (or partially, at least), advertising (assuming you do any), the computer, the room you use to do your naughty naughty stuff, the utilities, and the off-site storage for all those crazy high heeled shoes. The way you can deduct those things varies (you deduct computers over like five years, furniture over seven, and clothing and stuff would be a straight write-off. So it's complicated, but worth keeping track of.)

Now don't panic! The good news is that if you didn't plan ahead, you can fill out a simple form to request that you pay your taxes over time. I got behind one year, and had to pay something like $2000. I requested that I be able to pay it off at like $100 a month, I got a form letter back saying "cool!" and I wrote a check monthly. I paid it off early to save the interest, but the interest wasn't a big hit. (The other good news is that every time you hit Victoria's Secret, it's a tax deductable trip! You can even write off the mileage to and from the mall!)

All that said, if you're making any sort of "real money" here (like, say, more than 10K) it is very much worth your sanity to visit an accountant. It'll cost you a nice chunk of change for the visits (about an hour each, whatever the hourly rate is) but your accountant will tell you what sort of things to document, when you have to pay (technically, I think you have to pay every three months) and she'll probably do all the paperwork for you (for another fee.) But you'll know exactly what you can and can't do with regards to deductions, and how much you need to set aside. It's worth every penny.

Whatever you do, do NOT freak out. There's no need to lose sleep (like the first time I ran into this mess.) Nobody is gonna come get you and toss you in jail. The worst thing you can do is NOT file your taxes. The next worst thing is to not pay (unless you file for an extension or file to pay over time.) As long as you do the paperwork, the worst that they'll do is charge you a penalty (which won't be that bad) and some amount of interest.

Finally, let me repeat: I AM NOT AN ACCOUNTANT. Be sure you get real advice from a qualified person. Quote

i concur

talk to an accountant, you would be surprised what kind of deductions you can come up with....those fuckers are creative if nothing else! and if no taxes are coming off of your cheques i would strongly recommend you save at least 30-35% of each cheque, if not more....having more money than you need is never a bad thing, but having less can be

i don't know a whole lot about the american tax system so i can't be as much help to you as i could if you lived here but......is there an american equivalent to our RRSPs does anyone know? i use an RRSP to great effect every year, it is an awesome way to legally avoid taxation, it has worked wonders for me so far but i don't know what the american equiv would be? Quote

What does RRSP stand for? Is SP by chance stand for "savings program?"

An IRA (Individual Retirement Account) are a way for any American to save for retirement that one can use. I think you can deposit $2000 per year and not be taxed on that money for the year. There are other ways as well; that's just a common one. Quote

well i hope accountants aren't that exspensive!!
so i guess ill have to get one

so it's probably a good idea to see one now so i know what i should keep saved for deductables right??
hmmm

thank you sooo much!!

you've been such a huge help

pshk..now i can sleep at the end of the year
whew Quote

Just call an accountant and say you are self-employed, and want to learn what you need to do to be prepared come tax time in 12 months. Ask what it costs for that kind of consultation. I'd wager it's over $100. When I had an accountant do some particularly nasty taxes of mine one year, it was about $350. Worth every penny.

BUT... you can also google NOLO Press. They have all sorts of do-it-yourself books on things like taxes, running your own business, suing your landlord, etc. And I think NOLO is non-profit, so the books are cheap. And they're excellent. I think most decent sized bookstores carry their stuff. That's where I got a lot of my info. They'll even have worksheets and such to help you.

Key rule from that book: "Cash is trash." Always pay by check or credit card so you have a record of your expenses. And set aside a shoe box that you can just toss receipts into. You can always sort them later if you're a procastinating lazy butt like me.

Good luck! I hope you have a huge tax bill next year! (Because, you know, that would mean you earned a lot. ;) Quote

I just wanted to say I'm so excited to do my taxes next year haha. Come to think of it, I haven't even started them for LAST year (and they're due in a couple weeks at the latest...oops!!!). I'm pretty bad at saving money...so it's going to be so awesome when I owe the government a ton and have trouble paying it. What would you guys think of having a broadcast from federal prison??? Hehehehe....I'll wear my sexy prison uniform haha Quote

i do taxes let me do you a chart:
make owe
1000 141
5000 707
10000 1859
15000 3094
20000 4542
25000 5992
30000 7441
anything more 25% of earnings


i made that with tax software, and it's for someone with no dependents and no expenses,so in reality it's less than that. so any dependents and expenses are great. KEEP ALL RECEIPTS!
you can write off internet service, phone service, part of your rent, utilities, new phones, shoes, clothes, makeup, hair service, nail service, tanning, boobs, toys, hair products, a new computer and all other equipment, even a digital cam to take new pics. just keep good records. Quote

What would you guys think of having a broadcast from federal prison???


You should be so lucky, you bad bad girl. They're gonna make you WORK IT OFF. Hope your knees are in good shape, cuz Obama needs a new intern! And when you're not picking up whatever he dropped under his desk, it's community service time, lady. Put on that orange vest and get busy!

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let me add, those numbers are for federal only so if you're in a high tax state those should be good numbers for total. unless you have a LOT of expenses relative to your earnings. it's a good idea if you have a regular job to ask them to take out extra so it's not as hard at the end of the year.

you will get a 1099 misc since all models are independent contractors. you're the boos so you have to pay yourself. self-employment tax is high because in a wage job they take out taxes and the employer matches it, so with SE you pay double, and then some for social security.

anyway, remember you have feb-april to file and to make what you owe. i made my owed taxes in a week, heheh, but i had a lot of expenses for last year since it was when i started. next year doesn't look so good! Quote

Put on that orange vest and get busy!


Mmmmmmmm....I look so good in neon orange hehe ;). I'll be your naughty little prisoner hahahaha Quote

i do taxes let me do you a chart:
make owe
1000 141
5000 707
10000 1859
15000 3094
20000 4542
25000 5992
30000 7441
anything more 25% of earnings . . .

That looks to me like that only covers Federal income taxes and SSI. (I could be wrong. Just guessing.) For California, if you make over $47,055, you hit the top tax of 9.3%. That's a hefty bite to add on there as well. (Other states vary, obviously. Heck, in Alaska, I don't think they have an income tax. Problem is, YOU'RE IN ALASKA!) Quote

Whoops! Chelsey got back before I could finish looking some stuff and said that she only was calculating Federal taxes.

And yeah! A 1099! Thank you. That's what you get when you work as a contractor. And you file a W-9, I think, at the start of the year to give them your Tax Payer ID and all that.

Hire Ms. Eden to do your taxes. There's my advice. Quote

Mmmmmmmm....I look so good in neon orange hehe ;). I'll be your naughty little prisoner hahahaha


CELL EXTRACTION ON CELL BLOCK C! THE FOX IS HORNY! I REPEAT! THE FOX IS HORNY!

This is not a drill. Quote

well she sends me this pay stub like thing and said that she doesn't take any of the money out
and i did fill out a w4 or it might have been a w2..idk the difference
she said that i will have to do all the taxes for it at the end of the year and give money for my taxes
hmf


Well from what im told the first 10,000 you make from any job is tax free. Do you have another job? Because thats where I went wrong, I didnt think I would owe too much but because of my other job plus flirt put me in a higher tax rate then normal.You should def talk to someone now, caz you dont want to get a suprise at the end of the year. I have been saving only half of what I should of saved and I got a little suprise. So taxes are def setting me back. Quote

Im almost sure that for ie every $100 save $35 or ie every $1000 save $350 out of paycheck. If you dont live in cali you might have a little extra at the end of the year but better to be safe then sorry. Just get a savings account with intrest and at least it will grow a little over the year. lol I made $13 in intrest this year. Free money that will buy me a round of beers lol Quote