For some reasons, there is this strange and common misconception that we don’t have taxes automatically taken from our paychecks, it means that we don’t have to pay them. No matter what money you make, either if you do live web cam girl as a hobby or as a full time job, it is your income and you have to pay taxes.
There are not to much things to say on this topic because things vary from location to location, but I can give you three solid pieces of adivces about taxes and working in the live web cam industry that will definitely help you when taxes come around.
1. The first piece of advice that I wanna give you is to get a local accountant. I can give you questions that you can ask, but they are going to be the ones with the answers. The first question that you will want to ask is how much do I own ? What you are going to do here is to find out what are the income tax rates where you live. that way you will know what percent of your paycheck you will want to put aside so that you will pay the taxes. The reason this is so important to do is that when it comes the time to pay your taxes the money is already there and you are not gonna be struggling in the last minute for a paycheck so you get your taxes payed in time.
I know cam girls who had literally got away with writing off the most ridicoulos stuff and other that don’t write anything at all. For example if I earn 1000$ a week and I spent 200$ to get my work going I will pay taxes for only 800$. However, the local accountant can not 100% prove the 200$ dollars spendings. I rather prefer to not take into consideration the things I pay for when putting aside the money for taxes.
The important thing is that is better to save more and then to have money left over than not save enough and that have to scrounge to pay your taxes. The best way to stay organized and make sure that you are ready with all the information you need when it comes time to figure it out what expenses can and cannot be written off is based on your receipts. Keep them in an envelope, keep them in chronological order, just hold on to them. That way when the tax season comes you can sit down with your accountant, go through your list of expenses and they will tell you what you can and can not write off. The other important thing in holding on to your receipts is that in the event that you ever get audited you need to have proof of these expenses.
What things you could write off
Potential tax write offs could include: sex toys, lingerie, cosmetics, computer equipment and shipping and handling charges or anything that you purchased for work online. In a slightly separated category, another thing that you might be able to write off is the office space. The important thing to know about this is that it only applies to the space that is exclusively and specifically dedicated to your work. This means that if you are camming outside of your bedroom you cannot write off your bedroom as a working space. the way you calculate how much to write off is to take measures of the square total footage of your apartment versus the total amount of rent, you calculate how much you pay per each square foot and multiply that by the square feet of your office space.
Things can get even trickier here, but another thing to consider is expenses that you can partially write off. Examples of these things would be your internet bill, telephone bill and your hydro bill. The reason these things are considered partial write offs is because they’re expenses that you would have regardless of whether or not you are in the camming industry, but they are expenses that might be higher because you are using them for work.
For example, having an internet connection at home is a pretty common personal expense. For me personally, I’m paying for a really awesome internet connection so that I can enhance everyone’s experience within my line of work and I wouldn’t be paying for such a high end internet connection if I wasn’t in this industry. The last bit of advice that I can give you is related to what I already said. Keep organised all of you papers related to your work and keep them separated so it would be easier at the end. For example I keep in on envelope all the receipts in chronological order and payment related papers in another envelope. For anything that I order online or any payments that I receive online I make sure to separate them in one folder.
I prefer to have all these well organised so if I will ever have to prove anything I will not run in any kind of trouble and keeping them organised will make things faster and easier to carry on with. Apart from these, I also keep a note into a notebook of all the receipts. For these you need to write down as follows. Date: The date you get paid or the date you purchased something. Location: I also write down where I got it if it’s a payment, because I receive payments from multiple websites. I also write down from what category is a purchase. This however will be different from the category your accountant will place the into. If you receive payments in foreign currency make sure you write down the amount in your own currency.
Finally, as a live web cam girl worker, the three main things to remember are:
- Get an accountant
- Put aside money for your taxes
- Keep your stuff organized