That time of year is almost upon us: Tax Day. If you are among the 20 percent of men and women who are chronic procrastinators, you probably have yet to file and pay any taxes owed to Uncle Sam. Maybe you just haven’t gotten around to it or are waiting to meet with a tax professional. Whatever your reason (or excuse) might be, with less than a month to go until the 15th of April, now is the time to discuss how Sugaring may affect the scope of your taxes.
Disclaimer: Any views or opinions presented in this blog are solely those of the author and do not necessarily represent those of this site, its ownership or management, or the IRS. This blog should not be considered legal advice. You should seek out the help of a licensed tax professional concerning your taxes.
A gift is any transfer of property (including cash) given to another individual.
According to the IRS:
The donor pays the gift tax, which in this case would be the Sugar Daddies or Mommies. However, you may qualify for the annual exclusion if the total accumulative value of your gifts for each individual Sugar Baby is at or under $14,000.
No. The charitable donations exempt and tax credit can only be applied to qualified organizations.
The topic of income tax can be, well, taxing! Let’s take a little break. Do you ever wonder how we started paying for income taxes? It’s all Donald Duck’s fault.
I hope that gave you a little relief. Now let’s get back to business! There are other special situations where you may have to claim that bit of Sugar you received this year to the IRS.
If you are working within one of your benefactor’s companies, or providing services as a freelance personal assistant or nanny, you will need to claim that income.
No, you do not. Being a Sugar Baby is no different than being a girlfriend—albeit there are terms involved. If there were no services or goods rendered for the cash or property, this money falls under the classification of “gift.”
There’s only three weeks left, so don’t forget to file your taxes. You can file for an extension, but you’ll still be required to to pay those taxes in the end.