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Question: How do strippers file taxes?

I am a dancer in Portland, OR, but my address and everything else is in Washington State. I have been dancing the last 2 years and haven’t filed. I want to do my taxes but I don’t have receipts saying what I paid out every night or what I have made. I just want to know what tax form I would use and what I would say I have made since I have no verifiable income. Help me! I’m scared the IRS is going to find me and take me away!
I really just need to know what kind of tax form I would need. Technically I am an independent contractor.

Answer: Form 1040, Schedules C (or C-EZ) and SE.

(That line about “paid out” suggests that you pay bribes (oops, scratch that) “tips” to the bouncer to direct patrons to you. That would be complicated….) Just report your estimate of what you made and paid out. Be honest, but if the numbers aren’t in line with other dancers in the area, the IRS may decide to audit your return. In addition, if the dancing isn’t completely legal, you may want to write “entertainer” rather than “dancer” or “stripper” as your occupation and/or occupation code on schedule C. You are required to report all income, even illegal income, but you’re not required to report that the income IS illegal.

As Washington doesn’t have an income tax, you need to file a form 40N (non-resident) with Oregon. According to the instructions, you may need to file form TM (TriMet Self-Employment Tax Return).

Alternatively, you can purchase tax software such as TurboTax or TaxCut for both 2006 and 2007, although I don’t know whether that covers form TM. You cannot E-file 2006 returns, and apparently cannot E-file form TM, regardless, but you can still E-file 2007 returns until the extended due date of October 15, 2008.

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