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first12
Photographer
MC Photo
Posts: 4,144
New York, New York, US


Sophistocles wrote:

But if you have them, you're no longer an individual.

I can't deduct the fees my LLC paid on my personal taxes (non pass through). And I can't personally pay them for the LLC, unreimbursed.

Right?

Right, but it's because they've already been deducted.

It practical terms it's semantics. It tax terms, it's because the expense came earlier in the income chain.

There was a year that I created a corporation for a very creative tax reason. In the end that approach was abandoned. I don't recall if it was written off as a personal/sole proprietor expense, but I think that it could have been.

Regardless. Conceptually if an individual paid to create a corporation as an individual and it's a legitimate business expense, then they are deductible.

If you don't own a vehicle for business use, you can't deduct it, but it's still a legal deduction if you have the expense. The principle is the same, there's nothing that a corporation is allowed to write off that an individual can't. Neither can write off an expense that they don't incur.

It doesn't get any simpler than that.

Feb 10 13 01:21 am  Link  Quote 
Photographer
MC Photo
Posts: 4,144
New York, New York, US


Feb 10 13 01:23 am  Link  Quote 
Photographer
Robert Jewett
Posts: 2,457
al-Marsā, Tunis, Tunisia


Yes.  I pay all taxes.  Now in two countries.  It's the moral thing to do.
Feb 10 13 01:55 am  Link  Quote 
Model
Christina__Smith
Posts: 1,202
Modesto, California, US


I've done my fair share of filing taxes under "self employment". There are so many right-offs you would probably show a loss at the end of the year and not end up paying much of anything in taxes.

Things to consider:

hair, nails, makeup, clothing, tanning, travel expenses, car mileage, nutritional supplements, gym membership...anything that can even remotely be related to how you look gets written off.
Feb 10 13 02:12 am  Link  Quote 
Photographer
RKD Photographic
Posts: 3,265
Iserlohn, North Rhine-Westphalia, Germany


If I intended to defraud the tax-man, I certainly wouldn't announce it here.
Feb 10 13 02:32 am  Link  Quote 
Photographer
WIP
Posts: 15,427
Cheltenham, England, United Kingdom


Tax man is there to help you if you mess them around they will rip you to pieces.

I'm straight with them and get a good tax return every year.
Feb 10 13 03:34 am  Link  Quote 
Photographer
Faces2Die4 Photography
Posts: 426
Houston, Texas, US


As an attorney, my advice is to avoid phrases like "under the table" (cause that's where the IRS trolls lurk).   wink
Feb 10 13 03:59 am  Link  Quote 
Photographer
Pantelis Palios
Posts: 250
Birmingham, England, United Kingdom


I've read somewhere that the US government has no right to tax income and that a few people know this and don't pay. Maybe it's just for the übber rich? Maybe not?

I'd love to know if it's true?
Feb 10 13 04:04 am  Link  Quote 
Photographer
A G P
Posts: 75
Orem, Utah, US


edit: I don't want to get in trouble for giving people ideas. Just pay your taxes. You can argue whether you should have to pay taxes...and frankly the argument makes sense, but there aren't any courts in the US that will accept your argument. You'll end up in jail or at least with fines.

And to remain somewhat on topic...being self employed sucks come tax time. You have so much more to track and keep record of than if you work for someone else who has to do all that fun stuff. And you feel double gouged when you pay both halves of your FICA.
Feb 10 13 04:15 am  Link  Quote 
Photographer
Faces2Die4 Photography
Posts: 426
Houston, Texas, US


Pantelis Palios wrote:
I've read somewhere that the US government has no right to tax income and that a few people know this and don't pay. Maybe it's just for the übber rich? Maybe not?

I'd love to know if it's true?

Yes, there are fringe conspiracy groups who claim this - I'll bet there are even a few in the federal penitentiary after having tried to prove this point with the IRS.

The U.S. Constitution originally disallowed income taxation, however it was brought back to life with the 16th amendment.

John
F2D4

Feb 10 13 04:27 am  Link  Quote 
Photographer
R Michael Walker
Posts: 11,985
Costa Mesa, California, US


Shy L wrote:

Actually it's almost $10k a year before you have to file if you are filing single under 65.  Even higher for older people, joint returns, head of household, and widow(er).

http://www.irs.gov/Businesses/Small-Bus … Tax-Center

What are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

Feb 10 13 04:45 am  Link  Quote 
Model
Floofie
Posts: 394
Portland, Oregon, US


R Michael Walker wrote:

http://www.irs.gov/Businesses/Small-Bus … Tax-Center

What are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).

Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income on page 1 of Form 1040. But in some situations your loss is limited. See Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) for more information.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF).

Thanks Mike ~ this has been most helpful! I am still going to visit a CPA

Feb 10 13 09:00 am  Link  Quote 
Photographer
Looknsee Photography
Posts: 21,381
Portland, Oregon, US


Floofie wrote:
I have recently found myself in a position to quit my second (very part-time job,) but simply not filing any income for 2013 scares me! I'm already a full-time model, so I'm also afraid of losing a large portion of my income due to heavy self-employment taxation. I know this is a public forum and the IRS could probably find it if they wanted, so I understand if you don't wish to divulge, but I'd love to know other models' experiences....

Please PM if you'd rather keep it private.

Do you pay taxes or do only under-the-table work? (This is for non-agency work of course.)

Floofie knows me.

My photography brings in a little revenue from my web site.  I do have a business license (which costs me a little), and I do deduct some expenses and pay taxes on my revenue.  In my case, since this is mostly a hobby for me, my photography-related taxes don't amount to a lot. 

I just do this because it's the right thing to do.

If you are just getting by, your legitimate expenses (which you could deduct) might lower your adjusted gross income to a point where you wouldn't be paying a lot of taxes anyhow.  You are right -- see a CPA.

Feb 10 13 09:09 am  Link  Quote 
Photographer
David Parsons
Posts: 972
Quincy, Massachusetts, US


Pantelis Palios wrote:
I've read somewhere that the US government has no right to tax income and that a few people know this and don't pay. Maybe it's just for the übber rich? Maybe not?

I'd love to know if it's true?

You know who says that?  Conspiracy freaks that don't want to pay their income tax.

Feb 10 13 09:55 am  Link  Quote 
Photographer
Abbitt Photography
Posts: 11,587
Oakland Acres, Iowa, US


I don't make much income from photography, but yes, I do report it.

What I need to get better at is writing off related expenses.
Feb 10 13 10:05 am  Link  Quote 
Photographer
Cherrystone
Posts: 36,522
Columbus, Ohio, US


Small Fruit Pits wrote:
At a $400 a year income threshold to file.......not a guess.

Shy L wrote:
Actually it's almost $10k a year before you have to file if you are filing single under 65.  Even higher for older people, joint returns, head of household, and widow(er).

Better check with your CPA again. You're comparing apples to oranges.

Feb 10 13 10:10 am  Link  Quote 
Model
Aaliyah Love
Posts: 113
Los Angeles, California, US


LOL! Are you seriously asking people to publicly admit that they DON'T PAY TAXES ON THE INCOME THE RECEIVE? These forums get more ridiculous every time I visit them..smh

Sophistocles wrote:

There is nothing illegal being discussed, yet. There are perfectly legal ways to avoid or mitigate taxes.

Chill.

and then there's responses like this.. WOW, just WOW.

Of COURSE I pay taxes on every dollar I receive as income..whether that be from my website, my modeling, paypal, tips, etc. And I suggest you do too, and stop starting public conversations like this one.hmm Get yourself an accountant and ask them why this was a very bad idea if you don't believe me.

Feb 10 13 11:57 am  Link  Quote 
Photographer
ME_
Posts: 3,144
Atlanta, Georgia, US


What's wrong with that post? There are perfectly legal ways to avoid taxes. Here's one: donate money to a legitimate 501(c)(3) organization. You will offset your tax liability by the deductible amount of the donation. Nothing illegal about that.

I do agree that it's pretty ... shortsighted to start threads like this; and for people in them to say they deduct things the IRS very very plainly states are not deductible - like "hair, nails, makeup, clothing, tanning, travel expenses, car mileage, nutritional supplements, gym membership...anything that can even remotely be related to how you look gets written off."

Someone might try to report that and see if they can get the reward the IRS offers for turning in tax evaders.

Edit: actually the OP doesn't really say anything incriminating in the OP, but anyone who answers yes to her "do you work under the table" question is an idiot.
Feb 10 13 12:22 pm  Link  Quote 
Photographer
Sophistocles
Posts: 21,320
Seattle, Washington, US


I think Ms. love deliberately misinterpreted my point for the sake of drama or sanctimony. Likely both.

Pardon me, now, while I go do my taxes wink
Feb 10 13 12:43 pm  Link  Quote 
Artist/Painter
MainePaintah
Posts: 1,738
Saco, Maine, US


"Taxes?.....Taxes?.....I don't pay no stinking taxes"! ***





*** said like the line from the  Bogart movie, "The Treasure of the Sierra Madre"






The above is a tongue-in-cheek reply to the OP's forum question, and is not to be construed as an admittance of guilt of tax evasion by MainePaintah!   Whew!  smile
Feb 10 13 12:59 pm  Link  Quote 
Photographer
ArtGlo
Posts: 506
Peru, Illinois, US


Faces2Die4 Photography wrote:

Yes, there are fringe conspiracy groups who claim this - I'll bet there are even a few in the federal penitentiary after having tried to prove this point with the IRS.

The U.S. Constitution originally disallowed income taxation, however it was brought back to life with the 16th amendment.

John
F2D4

there are definitely prison residents who have tried to use the "unconstituional" income tax excuse!

Feb 10 13 01:09 pm  Link  Quote 
Photographer
Bob Helm Photography
Posts: 18,200
Cherry Hill, New Jersey, US


IRS expects, and the law requires you to report all income, legal or illegal, assuming you meet the reporting requirements (minimum income).

Generally if you start with  being worried about the IRS you are on the wrong path.
Feb 10 13 01:22 pm  Link  Quote 
Photographer
GeM Photographic
Posts: 2,368
Chicago, Illinois, US


ArtGlo wrote:

there are definitely prison residents who have tried to use the "unconstitutional" income tax excuse!

Wasn't Wesley Snipes one of them?

Feb 10 13 01:33 pm  Link  Quote 
Photographer
MC Photo
Posts: 4,144
New York, New York, US


Christina__Smith wrote:
I've done my fair share of filing taxes under "self employment". There are so many right-offs you would probably show a loss at the end of the year and not end up paying much of anything in taxes.

Things to consider:

hair, nails, makeup, clothing, tanning, travel expenses, car mileage, nutritional supplements, gym membership...anything that can even remotely be related to how you look gets written off.

Not all clothing. Only clothing that can not be worn in personal life and that can only be used for work. That narrows it down to uniforms and costumes.

Feb 10 13 03:35 pm  Link  Quote 
Photographer
MC Photo
Posts: 4,144
New York, New York, US


Aaliyah Love wrote:
LOL! Are you seriously asking people to publicly admit that they DON'T PAY TAXES ON THE INCOME THE RECEIVE? These forums get more ridiculous every time I visit them..smh


and then there's responses like this.. WOW, just WOW.

Of COURSE I pay taxes on every dollar I receive as income..whether that be from my website, my modeling, paypal, tips, etc. And I suggest you do too, and stop starting public conversations like this one.hmm Get yourself an accountant and ask them why this was a very bad idea if you don't believe me.

Maybe you should get an accountant who will explain to you that you don't owe taxes on every dollar of income.

Feb 10 13 03:39 pm  Link  Quote 
Photographer
J O H N A L L A N
Posts: 10,083
Santa Ana, California, US


Faces2Die4 Photography wrote:
As an attorney, my advice is to avoid phrases like "under the table" (cause that's where the IRS trolls lurk).   wink

As an attorney, you should know better than making public forum posts starting with the words: "As an attorney, my advice is"

Feb 10 13 05:40 pm  Link  Quote 
Model
Jennifer Barker
Posts: 8,010
Houston, Arkansas, US


Yes, I don't believe I would do well in prison.
Feb 10 13 05:43 pm  Link  Quote 
Photographer
bmiSTUDIO
Posts: 1,733
Philadelphia, Pennsylvania, US


Floofie wrote:
my intent is to do the correct thing legally -
I make just enough to survive and not much more.

You need a good accountant to help you understand what it means to be self employed. You do realize that travel, makeup, educational expenses (modeling classes), books, magazines, computer, phone, website expenses, prints, business cards, home office expenses...and more...are deductible and could mean you wouldn't owe as much as you think.

You don't want to screw with the IRS. It could cost you your car, savings, income and more. There are red flags and plenty of ways for them to discover anyone that is defrauding the government. All it takes is for them to audit a photographer or other business you might have worked for and then they follow the trail to the models. It isn't far fetched at all.

Feb 10 13 05:59 pm  Link  Quote 
Photographer
Luke Ryan Photography
Posts: 580
Santa Monica, California, US


dont feed the beast.  avoid as many taxes as you can.

dont enable and fund tryanny. 

taxes are theft.
Feb 10 13 07:13 pm  Link  Quote 
Model
Aaliyah Love
Posts: 113
Los Angeles, California, US


MC Photo wrote:

Maybe you should get an accountant who will explain to you that you don't owe taxes on every dollar of income.

I have a great accountant. And half of the posts in this thread are LOL worthy and I really hope you take them with a grain of salt and consider where they are coming from. But most of the posts in this entire forum seem to lack common sense, so I shouldn't be that surprised.

Feb 10 13 08:39 pm  Link  Quote 
Photographer
Faces2Die4 Photography
Posts: 426
Houston, Texas, US


John Allan wrote:

As an attorney, you should know better than making public forum posts starting with the words: "As an attorney, my advice is"

Sheeeeesh, lighten up!

I guess you're referring to Rule 1.05 of the Texas Disciplinary Rules of Professional Conduct. Of course it only applies to the confidentiality of my communications with clients and former clients - the young lady is neither.

Feb 10 13 09:57 pm  Link  Quote 
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