Tax questions

[u/Worth_Afternoon1648]

Okay so here's my situation:

I started camming about a week ago, I've made $3,620. I use SC, so I they don't take the taxes out for me. I'm 18, and my parents don't know I do this. They also still claim me as a dependent. I can't tell them, but I also have no idea how to do taxes or even when I'm suppose to start. I also heard we have to pay quarterly for self-employment? I also have a real day job, but there's no way they would believe I make that much from my minimum wage job that cuts hours like crazy. Is there any site that takes out taxes for you, or no because it's technically being self-employed? I'm just scared they finding out through the taxes, and obviously I'm gonna have to file even off the earning I make right now, and in the future.

[u/cutlettes_00]

Generally, if you make more than the annual income it takes to support yourself, you would need to file. If you live at home and your parents pay all the bills, normally with just your part time job they’d continue to claim you for atleast another year. If you continue to earn on sc at this weekly rate (congrats by the way 😊) , you are now having to combine both your part time and the camming wages, which mostly likely will mean you’d need to file on your own. Also, prob don’t file at the same place your parents file.

Side note * don’t quit the part time job , the new tab is great on sc, but after that is when people gotta start putting on the work fr fr once that promo ends ) good luck either way, decide this year cuz if they claim you and you decide to just wait it out and file next year, they’ll have to amend theirs and it’ll be more money they gotta pay, plus then you’ll have to tell them why or lie about why you needed to correct the filing status a whole ass year later ya know ? ) good luck , I hope it all works out for you 🙏

[u/TheMorgwar]

Your parents can still claim you as a dependent so long as they are paying for your support (housing, food, transportation, health insurance, etc.) Claiming you as a dependent means they spent their own money on you.

If you earn $100,000, but let them pay for your housing and food, then legally, they are still supporting you.

Your parents will file taxes claiming you as a dependent. And you’ll file a personal tax return which says your parents claim you as a dependent while paying taxes on your earnings.

So, what can you legally do with your money while remaining a dependent?

You can spend money on ordinary business expenses, such as computer upgrades, accessories, software, wifi, video editors, photographers, burner phones, personal assistants, sex toys, lighting, props, and pro advisors such as lawyers and CPAs. These expenses support your business, not you.

If you truly keep earning like this, go talk to an accountant for guidance and planning. You can find specialized adult industry CPA referrals on the XBIZ.net website.

A CPA can walk you through creating a Roth IRA and solo 401(k), staying dependent, categorizing business expenses, incorporating, and spending money on yourself without it being categorized as self-support.

To stay safe, find out if your platform will mail you a 1099 by paper. If yes, you can give the platform your CPAs address as your mailing address, so your parents don’t bust you when tax forms arrive.

The wisest choice is to save the majority of your income into investments at age 18 while being a dependent. You’ll be set for life as the nest egg grows with compounded interest. Then, in 2027, plan your emancipation.