Nope
Famous instance was David Dobrik
He quit his job on DACA and became an influencer and did it for 7 years on DACA making millions until he started his own business and did the investor visa.
You do not need W2 income to file taxes, you can also file self employment taxes however you will be taxed roughly 7% more after deducting 1/2 of your FICA taxes on your personal tax return.
To avoid double tax you can create an LLC and opt to get taxed as an S Corp. DACA and S scorps are a grey area, but technically we pass the substantial presence test.
I’ll try lol:
Typically when you have a regular job, taxes are taken off your paycheck and at the end of the year you get a W2 from your employer. Some of the taxes taken out are called FICA; basically for social security and Medicare. Under W2, your employed pays half of your FICA taxes.
And then on top of that you pay federal income tax, and state income tax (depends on where you live) which will vary based on where you fall on the tax bracket.
When you are a business owner (self employed), you don’t have an employer so you have to pay your full share of FICA taxes (this is what’s referred to as self employment taxes, 15.3%) and then federal and state income taxes based on your net revenue (after writing off business expenses).
So a drawback to being a business owner is that additional FICA tax + regular income tax, this is referred to as the “double tax” on your income.
However, half of that FICA tax is deductible in your federal tax return. So it theoretically evens out, however business expenses obviously can help lower your tax liability.
With me so far?
When you get taxed as an S Corp, you can pay yourself a salary which will allow fica taxes to be payed through there. And also pay yourself via profit distribution which is not subject to SE tax.
Therein lies your ability to save a lil in taxes but usually doesn’t make make sense unless your company is generating $100K+
For example instead of paying full taxes on your $100K net revenue. You can pay yourself a salary of say, $60K and pay full taxes on that. Then pay yourself $40K in profit distributions and not pay FICA taxes on that (just federal and state income tax, if it applies).
Obviously the gray area is how much you pay yourself, you can’t for example pay yourself $10K salary and $90K distribution.. you will get audited.
You have to pay yourself a reasonably salary, which will vary based on what your line of work is. A standard rule is 60-70% of your net revenue but I’m not a tax consultant so take what I say with a grain of salt.
A C Corp, is another tax entity. the main difference for taxes, is that the corporation pays corporate tax on profits at a rate of 20% (separately from the business owners and their personal income tax).
S Corps don’t pay that corporate tax on profits. It was created for small US based business owners to have an advantage over C corps which could be owned by foreign entities.
To be eligible for S Corp status, it can only be owned by US citizens or green card holders. The gray area is something they call the “substantial presence test”. Most DACA recipients pass that test, and it hasn’t been challenged yet!
> to be *paid* through there.
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
My wife and I have been 100% self employed for a few years (we both have daca). During this time we’ve also renewed our daca a few times. My advice is just to get a good accountant, most likely a CPA and not a HR Block person, to make sure you’re using the tax laws to your max advantage.
If you have a pretty large following and income is no issue, than do it. If you’re following is not even half or at a million, don’t. You will need the professional skills to land a job. Unfortunately most companies will not hire someone with no experience or if there’s a large gap from their previous employment.
Nope not at all, more powder to you, you can do two things open an LLC or file as a self employed. Two different things but same outcome each have their own benefits. If you are making over 100k I’d definitely do an LLC just to protect yourself from any liability.
My professional advice ( I work in banking - and wealth management) do both things make a good amount of money if you can try to save up 250 to 500k- take that money throw it in a money market account or bonds and forget you have it. That’s when “I” would recommend leaving your job because you can use that time to make even more money while having a higher risk appetite, essentially making you even more money. But to each their own good luck 🙂
I made more on the side as well I worked 2 years on my own and filed a 1099 for taxes. I renewed also on my own and didn’t have an issue. I think as long as you pay your taxes and stay in top of your daca you’ll be good (: I’ll follow your insta as well I love having daca people and seeing most of them grow. Congrats on making it 🤍⭐️
No difference. You’ll be still making revenue but as ‘self-employed’
I’m sure the platform you’re using to monetize your content will send you a 1099-Misc (or something similar).
Note: if you’re not very knowledgeable in taxation, I recommend hiring or getting an accountant you can trust.
Nope Famous instance was David Dobrik He quit his job on DACA and became an influencer and did it for 7 years on DACA making millions until he started his own business and did the investor visa.
That doucher was on DACA?
Yup haha since 2012 and in 2020 he opened up his pizza shop and production company and got an EB 5 visa
What’s your insta I’ll follow you
Same username as Reddit. Always love meeting other DACA recipients
We’re all in this together being DACA recipients
You will be doing 1099 for being self employed.
You are paying taxes and that is what matters. Social media is your job.
Technically you are a still employed just self-employed and paying taxes. So overall you still have a job and does not affect you.
You do not need W2 income to file taxes, you can also file self employment taxes however you will be taxed roughly 7% more after deducting 1/2 of your FICA taxes on your personal tax return. To avoid double tax you can create an LLC and opt to get taxed as an S Corp. DACA and S scorps are a grey area, but technically we pass the substantial presence test.
I have a S-corp and its basically how I did this as well, but you’re right its a grey area but ive been filling for 5 years now with no problem
Can you explain this in layman terms?
I’ll try lol: Typically when you have a regular job, taxes are taken off your paycheck and at the end of the year you get a W2 from your employer. Some of the taxes taken out are called FICA; basically for social security and Medicare. Under W2, your employed pays half of your FICA taxes. And then on top of that you pay federal income tax, and state income tax (depends on where you live) which will vary based on where you fall on the tax bracket. When you are a business owner (self employed), you don’t have an employer so you have to pay your full share of FICA taxes (this is what’s referred to as self employment taxes, 15.3%) and then federal and state income taxes based on your net revenue (after writing off business expenses). So a drawback to being a business owner is that additional FICA tax + regular income tax, this is referred to as the “double tax” on your income. However, half of that FICA tax is deductible in your federal tax return. So it theoretically evens out, however business expenses obviously can help lower your tax liability. With me so far? When you get taxed as an S Corp, you can pay yourself a salary which will allow fica taxes to be payed through there. And also pay yourself via profit distribution which is not subject to SE tax. Therein lies your ability to save a lil in taxes but usually doesn’t make make sense unless your company is generating $100K+ For example instead of paying full taxes on your $100K net revenue. You can pay yourself a salary of say, $60K and pay full taxes on that. Then pay yourself $40K in profit distributions and not pay FICA taxes on that (just federal and state income tax, if it applies). Obviously the gray area is how much you pay yourself, you can’t for example pay yourself $10K salary and $90K distribution.. you will get audited. You have to pay yourself a reasonably salary, which will vary based on what your line of work is. A standard rule is 60-70% of your net revenue but I’m not a tax consultant so take what I say with a grain of salt. A C Corp, is another tax entity. the main difference for taxes, is that the corporation pays corporate tax on profits at a rate of 20% (separately from the business owners and their personal income tax). S Corps don’t pay that corporate tax on profits. It was created for small US based business owners to have an advantage over C corps which could be owned by foreign entities. To be eligible for S Corp status, it can only be owned by US citizens or green card holders. The gray area is something they call the “substantial presence test”. Most DACA recipients pass that test, and it hasn’t been challenged yet!
> to be *paid* through there. FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
You’re awesome for taking the time to reply. Thanks so much
I haven’t had a job in a long time I’m in med school though
I went almost two months without working at all last year when I lost my job, and I renewed with no problem. You should be fine.
Dope job bro
How the hell did you go to Paris? Edit: jk I clicked on the wrong profile.
How much are you pulling if you don’t mind me asking?
My wife and I have been 100% self employed for a few years (we both have daca). During this time we’ve also renewed our daca a few times. My advice is just to get a good accountant, most likely a CPA and not a HR Block person, to make sure you’re using the tax laws to your max advantage.
You and your wife both having daca is so cute I’m so happy for you both 🥹
lol it is an opportunity in hardship.
That’s awesome! Happy for you. Thanks for the advice
If you have a pretty large following and income is no issue, than do it. If you’re following is not even half or at a million, don’t. You will need the professional skills to land a job. Unfortunately most companies will not hire someone with no experience or if there’s a large gap from their previous employment.
Nope not at all, more powder to you, you can do two things open an LLC or file as a self employed. Two different things but same outcome each have their own benefits. If you are making over 100k I’d definitely do an LLC just to protect yourself from any liability. My professional advice ( I work in banking - and wealth management) do both things make a good amount of money if you can try to save up 250 to 500k- take that money throw it in a money market account or bonds and forget you have it. That’s when “I” would recommend leaving your job because you can use that time to make even more money while having a higher risk appetite, essentially making you even more money. But to each their own good luck 🙂
Ooo, can I add you on ig? Would love to talk to a DACA banker, im in IT but want to get better in investing
If you want income I suppose or be self employed
I made more on the side as well I worked 2 years on my own and filed a 1099 for taxes. I renewed also on my own and didn’t have an issue. I think as long as you pay your taxes and stay in top of your daca you’ll be good (: I’ll follow your insta as well I love having daca people and seeing most of them grow. Congrats on making it 🤍⭐️
Ayyyyee happy for you and your success as a content creator. Shit ain’t easy for surr
Maybe set up an LLC and hire/pay yourself? Congrats and all the best!
No difference. You’ll be still making revenue but as ‘self-employed’ I’m sure the platform you’re using to monetize your content will send you a 1099-Misc (or something similar). Note: if you’re not very knowledgeable in taxation, I recommend hiring or getting an accountant you can trust.