Taxes? Say what? Too many models think that the camming industry is like waitressing. Just pocket most of your tips and if you have to turn them in, lie about it. False! As a webcam model you are contracted by a host site (unless you work for yourself) and that makes you an independent contractor. The government tracks your finances just like every independent plumber, builder, or photographer. You are your own boss and you are now responsible for your own taxes. No, most sites do not automatically take them out.
You will have to fill out a 1099 form and file for your own taxes. Unless you are experienced in this kind of work I am going to suggest you get a CPA (certified public accountant) so you can be sure to do this correctly. If you have a good CPA you will learn that certain things are tax deductible in your business. A room in your home can be claimed as an office so you can write off some electricity and other things. Items that you purchase for your business or maintenance can also be written off. I have not gone through this process yet, but I am assuming things like lingerie, toys, and computer accessories or services are also tax deductible.
If you have not been paying taxes quarterly or have yet to get an accountant please save 20% of each check you receive! This will save your ass at the end of the year! If you make good money camming, then you will pay good money back to the IRS. It adds up and can be very overwhelming when you are slammed with thousands of dollars in back taxes. This a serious industry and it needs to be taken care of like a real profession.
This is a warning to the girls who are doing this for a little extra cash because I know you are the ones least expecting this. Hiding it from mom and dad? Camming late at night in your room? No one will find out? When you go to apply for a grant or scholarship and they ask for your tax information, be prepared. When you ask mom or dad to help you fill out those forms with you, be prepared. They aren't expecting your little side job, but the rest of the world is. You are traceable and your finances are as well. When the college calls your parents saying your grant was denied because you made too much money last year, be prepared. There is no lie or excuse you can use to cover thousands of dollars in taxes or income. This is your warning.