Taxes. Don’t get screwed!
Let’s start with the basics! If you are a US model and were paid more than $600 in 2022, your 1099 tax document has been distributed via email from Track1099 and posted to the model dashboard (Payout Information → Tax Forms). We encourage you to retrieve your tax document directly from the model dashboard.
On a basic level, you are taxed based on total earnings minus total expenses. For example, if you made $100 and spent $25 on the lingerie required to make that hundo, you’d pay tax on the remaining 75 bones ($100 - $25 = $75).
What can I count as an expense? Always talk to an accountant or certified tax preparer about this question. Each individual has different expenses based on their particular work, and the IRS determines what’s an acceptable expense. The more you work with an accountant, the better they’ll get to know you, and the more precise advice they can give you on your expenses. Some basic expense categories include “office” supplies used within the year (e.g., lube), continuing education (e.g., you took a course for dommes), phone and internet (likely only part of your bill unless you have dedicated work lines), and advertising (e.g., legit promo).
One other point to note is that during the year, you need to be able to pay for each of your expenses as they arise. It is not until the beginning of the next year that you’ll realize any financial advantages. Remember, all that happens is that your expenses reduce the amount you’ll owe in taxes; tracking and deducting your expenses does not guarantee that you’ll get a refund.
When you meet with your accountant, you’ll need to have your 1099 along with any other tax documents (e.g., other 1099s, a W2). You’ll also need dollar amounts for your expenses grouped into categories; for example, advertising totals to $500 and new supplies (e.g., all that lube) used within this year totals to $100.
If you haven’t tracked your expenses in 2022, don’t panic! You can comb through your bank statements, credit card statements, Amazon purchase history, etc. to find and total your expenses. While this might sound like a snooze-fest, you’ll find it’s worthwhile to collect everything you can expense. Then make it your 2023 goal to track your expenses as they arise. You can even do this in a simple Google spreadsheet.
Taxes can be stressful, but you’re not alone. And if you already work with a great accountant, be sure to ask if you can refer them to fellow models and share the love!
DISCLAIMERS
This material has been prepared for informational purposes only; it should not be relied on for formal tax, legal, or accounting advice. You should consult tax, legal, and accounting advisors as needed before filing your taxes.