Public Forums > Modelling > Question for Freelance Models

Hi! So I freelance right now while looking for new agency representation, as well as work from home doing art and writing. Needless to say, I'm definitely a self employed multitasker working from home! That being said, this is my first venture into doing taxes as a self employed person and I was hoping that some of you Modelfolio people out there were also in my situation--in terms of being a freelancer/independent contractor, that has to deal with taxes and such. I'm curious as to what the rules/guidelines are for modeling (and even acting work) and Uncle Sam? I think I heard that you have to make a certain amount in order for it to be taxable but other than that, I'm kind of in the dark but trying to do research. Heaven knows, I don't need an audit!

If anyone has any knowledge to share, I'd appreciate it! Thanks!

Dania,

I'm not a CPA or Tax expert but, I am a professional photographer (a small business) just as you are. What you need to do is track all income. You're starting a small businesss, which makes an income and has expenses: marketing, travel, office equipment, administration materials, etc...

You need to keep in log (generally your calendar) all of your appointments, bookings, travel everything. That's part of your expenses, which off-sets your income. NOW some things to remember. Always put into a savings account or some separate account 25% of what ever you bring in and pay that toward your taxes, otherwise you may have to pay taxes. Or, you can do as many small business people do...risk it and hope that your expenses off-set your income enough that you don't have to write a HUGE check.

Many banks will help you in setting up an account for this stuff. Some banks will say you need to have a business license; that's a tricky one because legally, as a model, you don't need a license but, if you want to write-off things from your business (clothing, travel, lodging, etc...) then you kinda need to be a business. That's actually simple and in most cities you can get a small business lic. for $150 and BTW that's renewable (and tax deductable too).

It may seem complicated but, it's really not some things to remember; document everything, keep receipts, and either buy Quicken or Quickbooks (Quicken will do what you'll need) the later is more for businesses that sell stuff.... you.... you're renting your time. You invoice for your work and you get paid toward that invoice; that can be a simple receipt booklet thing if you wanted. If you want to be more polished and professional, have some form thing printed up.

If you have other questions on this look me up on my website: www.lifeimagesproductions.com and email or call me. I've helped many a model on this part of the business. Funny, just did this two days ago for 4 friends. ;-)  Good luck to you.

Hello, and thank you so much for your detailed and thorough reply! It is greatly appreciated. And you are local to me, too! What a small world. I have pretty much made a note of everything you've mentioned and have already put into practice most of it (keeping track of my income in a log/book, keeping receipts, etc). I have heard that independent contractors are also required to report their income/earnings like four times a year to the IRS. I believe there is some form or something that we are supposed to fill out with this information and send to the IRS. Any light you can shed on that? Last question: someone mentioned that you had to make a certain amount a year in order for it to be taxable...something like $600+ a year. Is that number supposed to be how much you've earned total or per client in order for it to be taxable?

I'll definitely be sure to check out your website and will also send my questions here to you via email as well in case you don't check back on the forums often.

Again, your help is greatly appreciated and I'm glad that you offer your advice to those of us that need it! =)