TL;DR: Set aside about 25% of your earnings for taxes. Use a credentialed tax preparer and a PO Box to keep your parents from discovering anything about your work and tax documents.
Get a PO Box or a private mailbox at a PostNet-type store, preferably a PO Box. Use this address on your W-9 and your tax return to prevent your parents from accidentally seeing any mail related to your work or taxes.
As a cam worker, you’re considered a self-employed business owner. You’ll owe self-employment taxes on your net profit (total income minus Chaturbate fees, payment processor fees, and allowable expenses). This is 15.3%, covering your Social Security and Medicare contributions.
You may owe federal income tax. The first $12,000 of your income isn’t subject to income tax, but it is subject to self-employment tax. Beyond $12,000, the federal income tax rate ranges from 10% to 37%, depending on your total earnings. On top of the self-employment tax, I’d recommend setting aside an additional 12% for federal income tax, though this amount can vary.
If you live in a state with income tax, you’ll owe state income tax as well, which ranges from about 3.5% to 13%.
Consult a tax professional to help you plan and track your taxes. Due to the need for privacy, avoid using your parents’ tax person. Even though a true professional wouldn’t disclose your information, it might be best to find someone in a different area.
Use a spreadsheet or a tool like QuickBooks Self-Employed to track your income and expenses. This will make tax time easier and save you time and money.
You can find a list of credentialed tax professionals in your area at the IRS Preparer Directory here. CPAs, Attorneys, Enrolled Agents, and other tax pros listed there can represent you in front of the IRS. A quick meeting with an EA or CPA might cost between $100 to $250, but it’s worth it.