Selling Feet Pics Taxes: How Much To Pay in Tax?
Earning over $400 for uploading an aesthetic picture of your pedicured feet is fun. Until you realize you have to pay tax for selling feet pictures.?
You don’t want to be in hot water with the IRS over what started as a silly little experiment.?
If you are making more money than you imagined from your bare feet, this guide will help you come up with a plan. You can decide whether to do it yourself or call your financial advisor.
Do You Qualify as a Taxpayer for Selling Feet Pics?
A Reddit user found himself in a unique situation.
His girlfriend sold feet pics to a single person for $100. It was a weekly source of income.?
Sometimes, the client would pay twice a week. The earning estimate is $600 per month.?
Now, this is where it gets interesting. The payment was made to the Redditor’s Venmo rather than the girlfriend.?
So, who is responsible for tax payments? The girlfriend or the boyfriend?
Unfortunately, it is the boyfriend, despite not having any part in the exchange.?
Yet, it also depends on the total income the boyfriend makes in the year.?
If a person is:
They do not have to file taxes or returns.?
So, yes, you will qualify as a taxpayer if your total income, including or excluding foot fetish activities, results in earning more than $12,950 in the given year.?
Note: The income threshold changes every year. Always check IRS guidelines before filing.?
Now, if you do qualify but are earning less than $400 from your feet pictures, you don’t have to pay self-employment income tax. You don’t have to add the amount to Form 1040.?
Sell Feet Pics on FeetFinder:
FeetFinder is the No.1 platform for anyone looking to sell Feet pics and videos. On FeetFinder, you can make money by getting paid subscribers, selling albums, and make money through getting a Tip and custom offers.
They have over 1 Million creators selling Feet pics and videos, and there are a lot of creators who are making a full-time income selling Feet pics and videos. Want to sell Feet Pics on FeetFinder? Sign-up for FeetFinder here.
Filing Taxes on Income From Selling Feet Pics: Step-By-Step Guide
Income made outside of a full-time or part-time job is business income. However, if the activity is a one-off or happens extremely rarely, you can file it under “Other Income.”
Supposing it is serious side hustle for you, here is how you should proceed.?
1. Fill Out Schedule C
The Schedule C is attached to Form 1040.?
It calculates the profit or loss from your business where you are the sole owner.?
For it to qualify as business income:
This could mean a registered business or a profession you practice alone.?In other words, any income you make is only yours.?
Not only do you have to report your gross income and profit, you also have to add all your expenses.?
Keep a record of every purchase you make towards this profession. Expenses are deductible and lower your total tax amount.?
Accountants will recommend selecting a corner of your house for this purpose and calling it your office. Even better if you know the square footage of the area.?
For a feet picture seller, the profession is similar to a model.?
So, your business cost may include:
For hardware like the camera or laptop, you can depreciate them. This means you don’t count the total cost of the camera as an expense. Instead, you base it on how many more years it will serve you.?
So, if the camera costs $500 and it will work for five years, you will list the cost as $100 for the current year.?
You can also list the total cost as a 179 deduction if you don’t want to use the depreciation method.?
The trick is recommended because it allows you to get a tax deduction on the hardware every year rather than in one go.?
For the nail polish and lotion, confirm it is a typical expense for other people in your business. If it’s not common, the IRS might dismiss it as a personal expense.?
If you are feeling creative, you can even include business mileage.?
For instance, a feet video shoot for a client required you to go to a park. It will count as long as you record the date, the total miles traveled by car, and the proof of the video submission.?
2. Calculate Schedule SE Tax
The result of the gross profit or loss from Schedule C is found on lines 31 and 32.?
Take the number and enter it into line 2 of Schedule SE.?
Schedule SE is the form for calculating self-employment tax.?
The tax rate is 15.3%. 12.4% is for Social Security, and 2.9% is for Medicare.?
Usually, your employer calculates this tax for you. The net wage you receive is after the tax deduction from your income.?
However, as a freelancer, you are in charge of calculating the total self-employment tax amount.?
3. Fill Out Schedules 1 and 2
Both Schedule 1 and Schedule 4 have a vital but minor role.?
The Schedule 1 form is for adjustments and additional income. Schedule 2 is for additional taxes.?
Take the profit or loss from Schedule C, line 31 or 32, and add it to line 3 of Schedule 1.?
Now, go over to line 13 of Schedule SE and take the number to enter it into line 15 of Schedule 1.?
Take the Self-employment tax number from Line 12 of Schedule SE and add it to Schedule 2, line 4.?
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4. Complete Form 1040
The Form 1040 is the main application you have to submit as an individual U.S. taxpayer.?
It has 13 Schedules at present. You have to fill out the Schedules which are applicable to you to get the tax you have to pay.?
Then, you gather the amount from those Schedules and enter it into the correct line on Form 1040.?
For your business as a feet pic seller, it would go as follows:
If you are a full-time employee, you will also note down the amount stated on your W-2 Form.?
Your total tax amount is calculated on the combination of your regular and freelance earnings. If you have other income sources, such as from farming or dividends, these are also added to Form 1040.
Form 1040-ES
Unlike employees, you receive full payment from your bank. No one is withholding your taxes for you throughout the year.?
It’s wise to pay an estimated tax if you are likely to owe a large amount at the end of the year from self-employment.?
You pay an equal amount about four times a year. The total income tax you have to pay at the year-end turns out less this way.?
What Happens if You Don’t File Taxes for Selling Feet Pics?
Beginner freelancers make the mistake of not calculating their taxes frequently. As such, the IRS is more lenient.?
Unless you pass the six-figure income mark, auditors are likely to only show up at your house with a gentle warning.?
Mostly, you will be hit with a Failure to File Penalty.?
Failure to File Penalty
For every month you did not pay tax, you will have to pay an additional 5% of your unpaid amount. However late you are, you never have to pay more than 25% of the total tax you failed to pay.?
The IRS also slaps interest on your penalty. Until you pay the total tax amount you owe, along with penalty and interest, the interest will keep increasing.?
In The Event of a Refund
If you don’t owe the government any tax but instead a return, you don’t have to pay the penalty.?
You will only miss out on the refund as you have to file the ITR within 3 years of its due date.?
EIN Protection
Do apply for an Employee Identification Number (EIN). Technically, earning through feet pics can be considered an interstate activity.?
You will have all your legal bases covered. Plus, if you have an EIN, you will not need to provide your social security number to sites like FeetFinder or Fun with Feet.?
Especially if they are likely to issue a 1099.?
If you are avoiding paying taxes altogether for your feet picture-selling business, know the IRS is still getting your 1099 form.?
They know you are earning from the feet picture marketplace but aren’t reporting any of it.?
Sooner or later, the IRS will send someone to your house.?
Evading Tax
Failure to file tax is not the same as evading tax in the eyes of the IRS.?
It’s after they remind you of your tax duties and you still do not pay the full amount that they consider you an evader.?
In this case, imprisonment could be in the near future.?
How to Reduce Taxes on Feet Pics Earnings?
For the most part, everything we mentioned under the filing income tax for feet seller guide helps you reduce tax.?
However, here are three other ways you can do it.?
1. Donations
When you donate to registered charities, they will send you a receipt.?
You can include it as a deductible on your tax file.?
2. Opening a Health Savings Account (HSA)
Any contribution you make to your Health Savings Account is deducted from your total income.?
You don’t have to pay tax on it.?
Of course, the amount won’t be sitting in your bank account either. But it’s health insurance money, and you can use it for emergencies.?
The withdrawals from HSA are also free of tax.?
3. Opening a Separate Business Account
The total expenses of your business could get lost if you use your personal account.?
Open a business account and purchase anything you need to capture feet pictures through it.?
All your income from the profession should also go there.?It will help you keep a neat record of your earnings so you know where you can reduce the tax.?
Wrapping Up: Taxes for Selling Feet Pics
You have to think of yourself as a freelancer while selling feet pics. You are earning by legal means, and the IRS is keeping track of your activities.?
Since all transactions occur online, they know the exact amount you receive. There is no point in trying to hide any of it.
Aim to be as transparent as you can with your income and expenses. Contact an accountant if the numbers get too confusing.?
You already made your accountant’s job easier with the simple act of business record-keeping.?
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