Hello, I am a college student and I want to do cuddling to earn some extra cash instead of uber. I was wondering if you pay taxes on this and cuddle comfort doesn't want to pay for the jail fee if you get in trouble.
Yes @butter123, it states in the terms of service for professionals that Cuddle Comfort is not responsible for that. By using the site you are basically operating as an independent contractor. I'm in Canada and the laws are slightly different up here as to when you do and don't pay taxes. For instance, I didn't need to file last year because my income after business expenses did not fall into the minimum bracket. Either way, you should be calculating and treating this as an actual business whether you are bringing in a lot of money or only a few thousand.
I file taxes for sure. I haven't made enough to owe any taxes yet, but you definitely should be tracking your income and filing it.
@butter123 As a self employed person, you would pay Social Security withholding (F.I.C.A.) tax of about 15%, you would usually file quarterly estimates and pay income taxes. Best to get the appropriate IRS publications and educate yourself a bit.
You have to report all income but if your earnings are under $400 you will not have to pay Self-employment taxes. IRS.gov is a good resource and check with your state comptrollers office about state taxes. Also, keep track of your expenses if you find that you have made over the $400 threshold. Some expenses may be deductible on a schedule C. Deductions will lower your taxable income which will lower taxes owed.
This website has nothing to do with your taxes.