Tax season can feel pretty overwhelming, especially if you’re a new cam model with no idea where to start. Do you have to report your camming income to the IRS? What qualifies as a business expense? Are the rules different because you are an independent contractor?
With the April 18 tax deadline looming, these are just a few of the questions that may be swirling through your head. Yes, filing taxes as a cam model can be a lot more complex than it might be for someone working a traditional 9-to-5 job where taxes are automatically withheld from every paycheck. This can make things a lot more stressful — and expensive — when it comes time to file.
As a cam model, there are a ton of expenses you can possibly write off, such as internet service, video and lighting equipment, cosmetics, outfits and more.
That said, there are some ways to simplify the process so you can breathe easier as you sort out your finances. Keep in mind that I am not a tax professional. These tips are just meant to set you down the right path so you don’t find yourself lying awake the night before the deadline with no idea what to do.
FILING YOUR TAXES IS A MUST
It can be tempting to “forget” about your taxes since no one is forcibly taking money out of your paycheck, but remember that sooner or later, Uncle Sam will come to collect. Worst of all, there will be late penalties, so you could end up paying much more than you would have owed to begin with. Many a cam model has played this dangerous game and found themselves owing tens of thousands in back taxes that could have been resolved for a fraction of the cost had they just filed to begin with.
KEEP YOUR RECEIPTS
Keeping a detailed record of your business expenses is arguably the most important thing you can do as a cam model. Not only will it make filing your taxes that much easier, but it can significantly decrease the amount you owe and protect you should you find yourself on the receiving end of an audit. As a cam model, there are a ton of expenses you can possibly write off, such as internet service, video and lighting equipment, cosmetics, outfits and more. As long as it is something you use specifically for your job and you have the receipts to prove it, you can probably write it off and dramatically decrease the amount of income tax you have to pay back.
IT HELPS TO HIRE A PRO
Many top models have an accountant on their payroll, but if that’s out of your budget, you may want to consider getting help from an in-person tax consultant — especially if this is your first year filing as a cam model, so you can get an idea of what to do for next year. Having a pro in your corner can also help protect you during an audit, so you don’t have to face it alone.
Tax laws are tricky and ever-changing, especially for independent contractors, so it helps to have someone on your side who knows the drill. It may sound expensive, but spending a few hundred dollars now could save you thousands later.
SAVE PART OF YOUR PAYCHECK FOR TAXES
Set aside a portion of every paycheck for income taxes, so you don’t find yourself owing money you don’t have come tax time. Of course, the amount is up to you, but 25% is a good rule of thumb used by many independent contractors. This takes a tremendous amount of discipline, but it’s worth it in the end!
1099 TAX FORM
The 1099 is a tax form companies use to tell the IRS how much they paid you as an independent contractor each year. If you made more than $600 from any given camming site in 2021, chances are you will get a 1099 in the mail if you haven’t already. You must keep these in a safe place, as you need them to determine how much you made in total, as well as how much you will owe in income taxes for 2021.
UPCOMING DEADLINES TO REMEMBER
April 18 is the deadline to file your 2021 tax return, pay any taxes owed or request an extension for most states. For those who live in Massachusetts or Maine, due to the Patriots’ Day holiday, April 19 is the deadline to file your 2021 tax return, pay any taxes owed or request an extension. October 17 is the deadline to file for those requesting an extension for their 2021 tax returns.
Again, please see a tax professional for advice specific to your case, as everyone is different. Either way, I hope this article helped get you in the right mindset. Good luck!
Jackie Backman is the content manager for Cams.com. She has been working in the industry for over 15 years and specializes in copywriting, beauty and social media management. Follow Jackie on Instagram at @beautychaoticofficial.
