Modeling Jobs And The Irs

Modeling Jobs And The Irs

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Modeling is a job, and it has the potential to make you a lot of money. The
IRS knows this too and they will want their share. When you earn money
it’s called income and the IRS collects income taxes from you.

Modeling is a little bit different than the average 9-5 type job. At most
jobs you are likely to collect a check every two weeks and most of the time
you receive that check after having taxes taken out for you. Modeling is
different, as a model you are an independent contractor.

As an independent contractor you are hired as needed. So you don’t get a
check every two weeks, and when you do work your earnings are paid out
without having taxes held. You’ll have to pay those taxes owed directly to
the IRS yourself.

This might sound confusing, but it can be really simple. Let me explain…

As I said, models are independent contractors, which is different than being
an employee. An employee works for a company, and independent contractor is
hired by a company to perform a service.

So, an example would be this: the receptionist at a modeling agency is an
employee, they have scheduled days they work from week to week and probably
get paid about every two weeks and the dollar amount they are paid is usually
a flat rate per hour. Taxes are taken out of their paycheck before they are
paid.

A model is an independent contractor, they may work with the agency, but they
are not an employee, they earn money on gigs or jobs the agency may find for
them, but they do not have to work any job they don’t want to work, and the
fee or dollar amount per job can vary from job to job. When they get paid,
no taxes are taken out of their check.

Another difference is as an employee you really can’t be discriminated
against for height, weight, age, etc… But as a model (and an independent
contractor), you will either be chosen or not chosen based partly or solely
on your looks.

The plus side of being an independent contractor is that you are your own
boss. Truly you are your own business. You can choose the jobs you’d like
to work, but being your own boss has it’s own responsibilities. If you’d
like to get more information and tips about the modeling industry check out
AmericasTopModelingCoach.com.

Taxes are a part of business. To make doing your taxes really easy I suggest
you contact a CPA (certified public accountant). A CPA will be able to help
you understand the taxes you owe based on your earnings. A CPA will also
show you how to save money by showing you different ways to get tax
deductions.

When you make a living as a model you’ll make money, but there are some
expenses and these expenses are costs you can “write off” at the end of
the year. An example of a few write offs might be:

Printing pictures and zed cards
Make-up
Taxi fares to and from jobs
Mileage on your car
Education, books, and coaching

There are dozens of other expenses that can be used as tax deductions, but
they can vary from state to state so it is always best to consult a CPA to
make sure your taxes are done correctly. Tax deductions are great for saving
you money. Let me give you an overly simplified example…

Lets say you earned $50,000 in modeling this year and you had nothing to
write off (no tax deductions). If the income tax were 15% then you would owe
15% of $50,000. So you would owe $7,500 in taxes.

However if you earned $50,000 in modeling and had $12,000 in tax deductions,
then you’d pay taxes on the difference. So you’d pay taxes on $38,000,
and 15% of $38,000 is $5,700.

*These are just examples. This is not given as tax advice. It is always best
to consult a CPA for proper tax advice.

So, you can see how tax deductions can save you money. I know it can seem a
little confusing. My CPA makes doing my taxes very easy. I supply my CPA
with all my tax paperwork, 1099’s, and receipts. She even sets up my tax
payments into easy quarterly payments so I don’t end up with a huge lump
sum payment at the end of the year.

Here is a list of the paperwork you need supply to your CPA…

Any earning statements (W-2’s, 1099’s)
All receipts
IRS transcript

An earning statement will usually be mailed to you at the end of the year.
Usually you will get a 1099 form in the mail, maybe more than one if you
worked several gigs. A 1099 is a form that shows the income you have made,
but have not paid taxes on. You could also get a W-2 in the mail and usually
with a W-2 there have been some taxes withheld already.

Keep your receipts for expenses. I pretty much keep everything, and then
sort it out with my CPA. He or she will let you know what will or won’t
count as a deduction.

An IRS transcript is a form you request from the IRS that will show all of
the reported earnings. You don’t need your transcript, but I request mine
every year just in case I don’t get all the forms I need mailed to me. The
transcript will show everything that has been reported to the IRS and it is
the safest way to ensure you are claiming the correct income on your taxes.
I always think its better to be safe than sorry.

Taxes can seem difficult, but by keeping yourself organized and working with
a good CPA your taxes will be a piece of cake.

About the Author:
"America's Top Modeling Coach" Jennifer Autry has spent the last 20 years
coaching aspiring and new models on how to start a successful career in
modeling the smart way. She recently published a Free Special Report entitled
"The Top 10 Modeling Tips" which is available at no charge at her website:
http://www.AmericasTopModelingCoach.com



Article Originally Published On: http://www.articlesnatch.com


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