Income verification

[Guest102312]

For the ladies that do this full time how do you verify your income? If you prefer not sharing please email me sweetmissmaci@yahoo.com

[Whispers]

I just helped a stripper complete a $150,000 purchase recently.

You do what she does. Every Day You deposit money into a checking or savings account and you make quarterly tax deposits so at the end of the year you can pay the taxes on it.

Maybe not all of it but declaring at least $40,000 a year will help you have great credit as well as buy a house within 2 years if you keep your debts down.

The other alternative you already know. But You need to be more reliable with the SOUP!

[VictoriaLyn]

I pay my taxes every year so I use that to verify my income

[guest031812]

Easy way is to have a bank account for deposits like whispers said.. it shows stable income & you can always use your tax return forms as verification of income. If you need something quicker most places will take letters as proof of income.. (such as cleaning someone house or child care)

[austinkboy]

Filing a tax return is best way for a "self-employed" person. If you have dependent child(ren), and you are head of household, you are better off filing and reporting tax return... Probably not pay any net tax, get social security credit, and probably get a refund for earned income credit.

[Reya Sunshine]

So you don't need to have a LLC to file taxes as a self employed person? I was thinking of starting some LLC photography or graphic design business for the sole purpose of having income verification and being able to otherwise function as an actual adult in the civie world.

[VictoriaLyn]

Originally Posted by Reya Sunshine

So you don't need to have a LLC to file taxes as a self employed person? I was thinking of starting some LLC photography or graphic design business for the sole purpose of having income verification and being able to otherwise function as an actual adult in the civie world.

I file as a domestic something no LLC needed ... I have an accountant do it for me

[Reya Sunshine]

Can you please pm me your accountant's name? Are they hobby friendly or do you just come in and say "I'm a domestic...housekeeper, nanny??" and never mention hobby.

Also, what sets off red flags as far as amount of deposit and regularity? Because sometimes I make 10k a month and sometimes I make zero a month.

Originally Posted by VictoriaLyn

I file as a domestic something no LLC needed ... I have an accountant do it for me

[NewWave]

Usually on your 1040 if you put BBBJNQNS for occupation the IRS will understand and give you good rebates.

[Reya Sunshine]

LMAO...E-Z indeed.

Originally Posted by NewWave

Usually on your 1040 if you put BBBJNQNS for occupation the IRS will understand and give you good rebates.

[austin_voy]

As a business owner (S corp) I can tell you that it's a little more hassle and more expensive. You have to file more forms and you pay both sides of the social security/medicare. And federal unemployment. And if you pay yourself more that $25K a year, Texas unemployment. And lots of Texas forms and the non-tax tax (franchise fee or whatever they call it). But I also need to protect my personal assets, so a corp works for me.

This is not tax, financial or legal advice. It's worth the $350 to talk to a lawyer. Actually, I paid her $500. How many providers make $500 for an hour and keep your clothes on?

[austinkboy]

I don't recommend LLC (limited liability company). Like an S-Corp, that is usually done for liability protection for business owners. LLC's are generally partnerships, although you can have a single member LLC, or choose to be taxed as a corporation. In addition to a whole lot of paperwork you don't need to do (like registering with the Secretary of State to qualify to do business) you will end up being subject to Texas Franchise Tax (yes, contrary to popular belief, Texas does have a form of income tax).

For the simply filing a tax return to report some amount of income, and to establish a work or business history, I would recommend just running your business as a a "sole proprietorship". If you prefer to use a "business name" (like "Susie's Hobby Services") you can register your dba ("doing business as" name) at the County Clerk's for a few bucks, and even get a Federal Tax ID number over the internet so that you don't have to use your personal social security number.

Remember that there is a Chinese wall between the IRS and LE... meaning filing an income tax return does not mean that the authorities are privy to this information. But if you don't report the income, that is a crime... that is how the FBI locked up Al Capone...income tax evasion.

Your tax guy is your advocate, not the IRS, and not LE... So, you can seek his or her advice about "hobby" income and business expenses without necessarily hiding what you do. That doesn't mean of course that I advise sharing all of the details, just on a need to know basis.

[Reya Sunshine]

Everyone keeps telling me I should study law since I argue so much. lol. For 500 an hour it looks pretty tempting!

Originally Posted by austin_voy

As a business owner (S corp) I can tell you that it's a little more hassle and more expensive. You have to file more forms and you pay both sides of the social security/medicare. And federal unemployment. And if you pay yourself more that $25K a year, Texas unemployment. And lots of Texas forms and the non-tax tax (franchise fee or whatever they call it). But I also need to protect my personal assets, so a corp works for me.

This is not tax, financial or legal advice. It's worth the $350 to talk to a lawyer. Actually, I paid her $500. How many providers make $500 for an hour and keep your clothes on?

[Reya Sunshine]

Thanks, great advice. This can probably help a lot of girls become more stable...I know it will be nice for me to have verifiable income etc.

I knew there was a reason other than your manners that I liked you Kboy...turns out you're smart too. :sigh:

Originally Posted by austinkboy

I don't recommend LLC (limited liability company). Like an S-Corp, that is usually done for liability protection for business owners. LLC's are generally partnerships, although you can have a single member LLC, or choose to be taxed as a corporation. In addition to a whole lot of paperwork you don't need to do (like registering with the Secretary of State to qualify to do business) you will end up being subject to Texas Franchise Tax (yes, contrary to popular belief, Texas does have a form of income tax).

For the simply filing a tax return to report some amount of income, and to establish a work or business history, I would recommend just running your business as a a "sole proprietorship". If you prefer to use a "business name" (like "Susie's Hobby Services") you can register your dba ("doing business as" name) at the County Clerk's for a few bucks, and even get a Federal Tax ID number over the internet so that you don't have to use your personal social security number.

Remember that there is a Chinese wall between the IRS and LE... meaning filing an income tax return does not mean that the authorities are privy to this information. But if you don't report the income, that is a crime... that is how the FBI locked up Al Capone...income tax evasion.

Your tax guy is your advocate, not the IRS, and not LE... So, you can seek his or her advice about "hobby" income and business expenses without necessarily hiding what you do. That doesn't mean of course that I advise sharing all of the details, just on a need to know basis.