1) The IRS

2) You are classified as an independent contractor. If you want to play by the rules, you should make quarterly estimate tax payments
Web site designer always works or party planner.

3) Establishing income will help you down the road if you want to purchase a car or buy a house. I have a fav who pays taxes and has both.

4) If you have a provider friend ask her if she uses an accountant.

5) I am not a CPA

1) In Minnesota if a bank account has deposits of $10,000 or more a YEAR isn't someone called or notified? I forgot the name of the agency.

I believe it is single deposits of more than 10,000 not the yearly total but I could be wrong.  I also have heard that, post 911, large cash deposits of any amount are sometimes reported as well.

2) Taxes-How do I tax this? I could say I'm an independent stripper or massage therapist, but how do I file this? Also, I'm 18 and listed as a dependent on my parents tax forms. If I decide to put down stripper, wouldn't they find out or do I switch to dependent?

List yourself as an entertainer if you want to use the exotic dancer cover. Almost any consulting title will do. I would avoid massage therapist as in most cases you need to be licensed.

You should probably consider getting advice from an accountant or from other ladies in your position. In any event, dancing, for example, is a perfectly legal and legitimate cash business.  If you are filling tax returns and doing things on the up and up you really don't need to worry about the cash deposits to your bank account.

I think most people deposit more than $10,000 a year.  It probably is true if you deposit it at one time.  But you are doing the right thing by reporting something to the IRS.  Less headaches in the long run.

1.) Most banks have pamphlets or signs placed inside the bank listing the federal and state laws regarding maximum deposits and withdrawals without special procedures. If the info isn't posted, it'll be in the documents you were provided when you opened an account and most likely on their website if they have one.

BE CAREFUL WHEN DEPOSITING CASH. If you deposit a disproportionate number of small or large bills (all 100's or all 1's & 5's), a large number of old bills (pre big-head design), large and similar amounts on a regular basis, or a lot of consecutively numbered bills you will raise questions. Also, banks are regularly audited by state and federal bean counters. If someone sees a pattern, they're likely to report it to one agency or another, whether it be the IRS, Homeland Security, the DEA, or any other combination of alphabet soup. I'm not just being paranoid; I make my living buying and selling collectibles and bullion, a mostly cash business; I've run into all of the people I mentioned and others. One thing that helps is to be friendly with your bank tellers and managers. Sitting at a desk all day can be boring; don't be the person that lets them make a phonecall or send an e-mail to an authority for some excitement (yes, some people ARE that petty).

2.) I'm not an expert on taxes by any means, but I will add one thing you need to avoid:  listing anything that sounds like you should be collecting sales tax. Depending on where you live, you could have local, county, and sales tax and/or excise taxes depending on what you sell. You don't want to avoid vice and the IRS only to be pinched for failing to collect and report sales tax.

3.) As the youngest of eight, never assume you're parents don't know (as brought up earlier). You are the puzzle and they the puzzlers; it's their job and biological drive to make sure all the pieces fit together properly. When you lead a double life, you're painting a different picture on the back of the puzzle. Eventually, there will be too many pieces that don't fit and someone will flip them all over and figure it out.

Tread lightly.

that has the ring of truth to it.  It could be food service, computer work, book keeping...  any legit work from home employment.  One Fav has such a legit business...  by appointment only...  from her home office.  Now she lives simply, is pretty UTR, provides as a supplement...  and has done so for several years.  
I park in the client space.  When I enter, I lock the door (as previously instructed) & we ajourn into her private space.

Solution solved....

I will contact a local accountant and claim I'm a nanny...which is partially true. I nanny 2-3 days a week and since I'm 18 my family agrees I should start taxing some of that.

Thank you for all your help, I really appreciate it!

1. Take a look a your Form 1040 right above where you sign. Did you see that statement about “I affirm under penalties of perjury that the statements are true to the best of my information and belief?”

    Now look at your website where you describe yourself as a “companion” and re-ask your question as to how you should designate your occupation on your 1040 form. There is nothing illegal about being an adult companion so long as you do not violate the law by engaging in illegal conduct.

      But it is a felony if you lie about your occupation to the IRS.


       2. Under the Bank Secrecy Act, every non-casino financial institution must, subject to certain exceptions, file a report with the Treasury Dept. of each deposit, withdrawal, exchange of currency or other payment or transfer, which involves a transaction in currency of more than $10,000.

     But that’s just the beginning. Your bank also must, subject to certain exceptions,  file a report of any suspicious transaction if it involves or aggregates at least $5,000 in funds or other assets, and the bank knows, suspects, or has reason to suspect that the transaction involves funds derived from illegal activities.

    A young lady who continually makes cash deposits of $1000 to $5000 at a time just might make the bank suspicious. This is one reason why you must carefully report ALL cash income to the IRS. So the posters who focus on the $10,000 reporting requirement are not being very helpful.

      I think the Patriot Act imposes additional reporting requirements but I’m not familiar with those.

Don’t trade a misdemeanor for a felony. Don’t mess with the IRS.

fitness consultant and personal trainer - the IRS does not really care for the details if you report all your income.  

The comments on bank accounts are correct, make many smaller deposits. You web site indicates that you tour, so just open an account with a national or large regional bank with widespread branches, make you deposits while touring so the hometown locals don't notice anything (or do deposits via the ATM after hours).

You can pay your credit card bill via  a money order - sold for cash at the Post office.

You are a full time college student.  Your services are ancillary to your main occupation which is student.

I would list my income on a schedule C as either a consultant (professional activity code)812990 or an entertainer code (p.a.c.)711510. Be very careful of your deductions, you don't want to raise red flags. Your parents can no longer claim you as a dependant if you are depositing $ in a bank (unless you deposit less than the standard deduction for single which is $5450 the entire tax year and you are a full-time student) If you keep everything cash, no prob with the deduction/parents claiming you as dependant. Otherwise, pay your taxes quarterly based on your deposits to the bank less reasonable expenses (not including nails, hair, spa, wardrobe, etc) Travel may be deductible, hotel stays more than 50 miles from domicile, and food but see the link for specifics...Realistically, though, SE tax is unavoidable...

If you would like to contact me privately, I can help you individually...free consultation..why not? Anyway, my email is [email protected]

You can put down that you are a personal assistant.  That way, if your parents ask a nanny would seem to fit in that category and for whatever else you do or dont do I think it very clearly is personal assisting.  I havent seemed to have had any problems with it.

Anya,

Be very honest.  I don't want you to end up like Tricia Oaks.