How do you report your anual earnings as an escort?

[chitownguy]

13 hours ago, socurious said:

Receiving money from relatives (lend money) counts as money you make? Because in my case, I didn't report a large amount of that last year. It was likely less than 1.5k though. 

Money received as a gift or from a loan is not taxable.

[+ JamesB]

15 hours ago, socurious said:

Receiving money from relatives (lend money) counts as money you make? Because in my case, I didn't report a large amount of that last year. It was likely less than 1.5k though. 

 

Personal loans from a bank or other financial institution are generally not taxable. However, informal loans from friends or family could potentially be subject to tax. In your case, due to the small amount, it isn't taxable.

[handiacefailure]

On 10/9/2024 at 6:08 PM, augustus said:

True that!  You have to be careful though.  The IRS will look at wholesaler's records and see if the retailer has reported, or not, all their sales.  In my state, bars are only supposed to buy their inventory from a wholesaler.  When the state started an audit a few years back based on what the bars claimed was their sales income and matched it against what they purchased from the wholesalers many of the bars were hit with a big tax bill and penalties.  They even estimated how many glasses of beer a keg would produce. 

And most small business that accept cash are places like bars, restaurants and convenient stores that charge sales tax.

If the business is charging the sales tax and reporting it honestly, very easy for the state to match up the revenues on the sales tax return to the revenues on the state income tax return.   I know some businesses are dishonest with reporting the sales tax as well, but seeing it’s a trust tax they are holding, good way to get your business shut down since you’ll lose your vendor and sales tax license

 

[marylander1940]

On 10/8/2024 at 10:21 PM, socurious said:

My escort friend only worked as a provider the whole year and he wants to know how to report the earnings for the income tax to be able to get a refund. The earnings were a combination of electronic transactions and cash money according to him. He is new to the business and need some orientation. I will pass him the thread's link so he can read the replies (he doesn't have an account here yet). Thanks in advance. 

Tell him to talk to an accountant directly. 

On 10/9/2024 at 9:02 PM, pubic_assistance said:

Yes.

You do seem to not understand how taxes work.

@socurious is not from this country.

On 10/8/2024 at 11:49 PM, augustus said:

The electronic transactions should be reported.  Up to him on whether he wants to report the cash income.  Put down self-employed or massage therapist or physical therapist as the occupation.  

Possibly the best advice he'll get on this subject on here unless an accountant is already sending him a private message.

[pubic_assistance]

5 hours ago, marylander1940 said:

@socurious is not from this country

His lack of understanding made me think he wasn't from this planet....🤣

 

Edited October 21, 2024 by pubic_assistance
grammar

[Luv2play]

On 10/10/2024 at 2:30 AM, mike carey said:

OUTRAGEOUS!!

The map in that video showed New Brunswick and Nova Scotia as parts of the US.

There was a border dispute between Canada and the US concerning Maine and New Brunswick but that was over 100 years ago. And Canada lost the arbitration as I recall. 

[Luv2play]

On 10/10/2024 at 9:42 AM, chitownguy said:

Money received as a gift or from a loan is not taxable.

But there is a gift tax, at least here in Canada. I imagine the US is the same.  
One area of difference is lottery winnings which are taxable in the US but not in Canada. 

[handiacefailure]

On 10/9/2024 at 11:08 AM, Vegas_Millennial said:

Another advantage of honestly reporting your income: 

Qualifying for a mortgage or rent.  Most applications will want to see your income tax return.  If you report less than what you actually earned, you won't qualify for that home or apartment. 

But as @pubic_assistance wisely pointed out:  your friend won't get any refund unless he's overpaid his estimated quarterly taxes throughout the year.  Be sure your friend is paying estimated quarterly taxes, so he's not hit with a big penalty come tax filing time.

And I am a huge fan of Roth IRA’s and think everyone should max them out each year if they are eligible.   If someone is claiming zero income, they also cant contribute to a ROTH since you have to have earned income. 

Edited October 22, 2024 by handiacefailure

[Kevin Slater]

3 hours ago, handiacefailure said:

And I am a huge fan of Roth IRA’s and think everyone should max them out each year if they are eligible.   If someone is claiming zero income, they also cant contribute to a ROTH since you have to have claimed income. 

Or more specifically, earned income (so not interest, rents, or other passive income).

Kevin Slater 

[handiacefailure]

8 hours ago, Kevin Slater said:

Or more specifically, earned income (so not interest, rents, or other passive income).

Kevin Slater 

Good catch.  Changed it.  

[+ Vegas_Millennial]

There are professionals who get paid to prepare taxes. Just like a man shouldn't be resistant to hiring an escort to fulfill his sexual needs, a man shouldn't resist hiring an income tax preparer to fulfill his tax filing needs either.

[+ Vegas_Millennial]

On 10/8/2024 at 7:21 PM, socurious said:

My escort friend only worked as a provider the whole year and he wants to know how to report the earnings for the income tax to be able to get a refund. The earnings were a combination of electronic transactions and cash money according to him. He is new to the business and need some orientation. I will pass him the thread's link so he can read the replies (he doesn't have an account here yet). Thanks in advance. 

You will find more answers on this thread, when you asked the same question two years ago: