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By Paolo Lugarà
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Cam Models And Taxes

Posted on Wednesday

Cam Models and TaxesA webcam model (camgirl or camboy) is a live video performer whose content is streamed online with a live webcam broadcast. The model only puts a performance of erotic acts for online customers in exchange for money, attention or other products. These acts include stripping, sexual dancing, among other sexual acts. Apart from live performance, cam models may also opt to sell their video performances to willing customers.

These performances are normally filmed at home, making it easy for the models to choose how much erotic content to display. Most choose to expose nudity and other sexually stimulating behavior. However, some choose to remain clothed while engaging the audience in verbal communication which should also be paid for. They can be freelance models doing their own shoots, or models registered under a common webcam website while still retaining an independent contract business.

The webcam modelling profession normally requires people with specific skills that are important and advantageous for the career. These include fluent communication and negotiation skills, sexual and physical appeal, the ability to exhibit and do theatrics as well as hypersexuality. All these combined are a sure way to earn and make a lot of money as a webcam model.

Just like other professions, being a webcam model has an income and every income is normally subjected to tax in all countries. This sector is able to bring in a lot of revenue annually. When the tax collection period is open, it is usually a hectic time for the models as they have to file for accumulative taxes mostly, depending on the tax payment option preferred. This is because most models don’t know that a tax has to be paid in every payment made by consumers and received by the workers. Also, there are no direct tax deductions from the income like other regular jobs. This makes it necessary for the models to pay the tax as a lump sum.

There are a number of concerns that webcam models have about paying taxes including how and when. The procedures for payment of taxes is different in every country and, it is also determined by the website you work for. Most modelling websites consider the model as an independent worker or contractor who can cater for the payment of their own taxes.

Paying taxes is a mandatory exercise for all workers, whether they are citizens of a country or not. Otherwise, as a worker, you will be followed by the tax company resulting in complications such as lawsuits against possible tax frauds. It is therefore important for webcam models to adhere to the rules and regulations on tax payments. Due to the lack of deductions on monthly income, it can be tempting for the models to evade tax or pay less than what is supposed to be submitted. The information provided below on webcam models and tax payments will offer an easy way to understand the procedure, means and requirements for tax filing.

How do webcam models file for taxes?

When one is engaged in an online or internet job, tax payments are likely to be evaded. However, it is the responsibility of all citizens to submit tax for every income year, as it is the major source of government revenue in most countries.

Just like the payment of other taxes, it is a procedure that should be followed carefully. There is a number of ways through which the amount of tax to be paid is determined, filed and paid. The two most common ways are:

- Hiring a certified accountant

For first-time webcam models, tax filing can be a hectic and cumbersome job due to lack of adequate information on tax filing for such models. Although most of the time an accountant is not necessary as it’s easy to figure out the procedure on your own, they can really be of help, especially for first-timers. However, this will require some confidence as the model will be expected to divulge information they may find uncomfortable. However, consulting with an accountant to assist with tax filing is vital as it’s easier to cover all grounds while minimizing the potential for overpayment of taxes. There are many certified public accountants who specialize in tax filing for webcam models. They can be found on the internet or are even recommended by the webcam websites.

- A tax software

Due to changing times, it has become easier to handle such things as payment of taxes over the internet. This is especially due to the development of different tax software which can calculate the tax due from monthly or yearly income in a matter of minutes. It has been created in a way that it provides an easy guideline to follow and has a feature that corrects any mistakes and errors made. It also offers a certain guarantee of privacy for cam models.

Write-offs for Webcam Models

All taxes are accorded certain write-offs and it’s no exception for webcam models. Since this is self-employment, there are a number of professional equipment and accessories that are not taxed. Some of the things that can be written off, include:

  • A certain percentage of rental expenses. The model will only have to make a report on the portion of the house used for the business and any other costs associated with the working space. These are counted as deductions.
  • Stated percentage of certain utilities, including water, internet, electricity, heat among other bills.
  • All the equipment that is strictly used for business and can be confirmed in case of an audit such as webcams, laptops, cameras etc.
  • Other decorations for only the rooms strictly used for business.
  • Deductible travel expenses that were incurred in the line of work, including meal expenses, room and accommodation costs.
  • Shipping or mailing expenses for those who ship content to consumers.
  • Other expenses and costs associated with work such as advertisement costs, web designing fees, web hosting expenses etc.
  • Although the above write-offs are allowed, it is mandatory to do it carefully. This is because there are strict rules on what should be deductible and even though it may be easy to evade the loopholes, they eventually catch up. This can lead to an audit by the tax company leading to the payment of unnecessary taxes and other costs. Only the expenses that are strictly related to work should be included in the write-offs.

    In order to avoid any shock when the tax bill is mailed, it is important for the models to save a certain amount, preferably 20-30% of their income, for tax purposes. Apart from the normal tax on income, there is also a tax on social security that should also be paid.

    What are the forms that should be filled when filing taxes?

    Due to the disparity in the tax situations, it leads to a difference in the way the taxes are filed. Below are the most common ways that the taxes can be filed:

    1) 1099 Forms

    Being a webcam model means that you are self-employed. This simply means that the information divulged to the tax company is yours. Such information includes the business name, the tax id number, physical address and contact information. The social security number you use will also serve as the business tax Id.

    The only problem that arises is that most webcam models use an alias for the business name. This is highly discouraged unless the model has a legal business registration. The information given will be used to fill the 1099-MISC at the end of every year. This form is issued for the models who have earned more than $600 in the past year.

    Since the tax company always gets a copy of the form, it is advisable to use the correct information to avoid tax fraud. This is a punishable crime legally with jail time or cash fines.

    2) The C-EZ Schedule

    This is a schedule of some kind that is required to be filled by anyone who is self-employed or an independent contractor regardless of the sector. This form only requires to be filled in the applicable sections by the person filing for the taxes. For webcam models, the only sections that need to be filled are the business information, the business code in the first section and the relevant blocks in the following sections.

    When filling the form, it is essential to maintain honesty in order to reduce the chances of fraud and other errors. All your money sources relating to the business should also be included, as well as, the total amount from the sources. All other disallowable including gifts exceeding $100, equipment and accessories should be included in the form.

    This is because these are equipment and accessories that can be used for other purposes apart from the business. Unless you have the specific invoices and receipts that prove that these were strictly used for business, you should not exclude them from the tax form. Expenses for equipment and accessories such as; sex toys, fetish pervertables, plastic surgery costs, lingerie and other clothes, cosmetics and lubes are not considered valid expenses in most countries for webcam models.

    While filing the form some of the expenses that may be allowed are:

  • Business expenses for trips that are business related such as going to photo shoots as long as you have evidence in the form of receipts and other invoices.
  • All the expenses incurred during the business photo shoot and not the camera itself.
  • Depreciation for equipment strictly used for webcam filming such as computers, laptops, cameras etc.
  • Web hosting and advertisement expenses.
  • All the above mentioned are among other many items that can be written off as mentioned earlier.

    In such cases like the case of the US, where there are different states with different rules and jurisdictions, it would be advisable for models to take into consideration the different rules and regulations on taxes. This also applies from one country to the next. Even though the job being done is the same everywhere, different countries have different taxing policies and tax collecting companies making it necessary to familiarize yourself with this.

    In case a webcam model visited and worked in different countries during the income tax year, they may be forced to split the income depending on the period of stay and the nature of work conducted. This is vital as every country or state has its own expectations and regulations.

    Being a webcam model is a very flexible job that people consider. It has certain levels of independence and is an important source of employment in the current world. This makes it one of the revenue earners for a country and is seen to surpass the income from the mainstream pornography sector. It is becoming a popular source of entertainment for people who are willing to participate. From surveys and researches done, the sector is able to generate an estimated 9 million new and unique users and viewers annually. This is a real game changer, especially for the adult film industry that has seen a major slash in their profits due to webcam modelling.

    Conclusion

    When it comes to paying taxes, it would be highly advisable to get that tax software as earlier discussed. Not only is it effective in calculating the exact tax that every model has to pay, but it also offers privacy and it’s not hard to follow. There are a number of highly recommended tax software that can be used for the purpose. However, this does not mean that models should exclude or substitute human professional help when it comes to filing for taxes. Nothing, not even machines and other software, can beat the understanding of a fellow human being. Although it may be difficult to explain to them what your profession is, once you are able to, it’s easier for them to even offer advice where necessary to avoid tax fraud and other offenses.