Tax implications and legal questions about selling feet pictures as a side income

I'm a tax preparer, and these are great questions! Let me help clarify some things about taxes and self-employment: PayPal will issue a 1099-K if you receive more than $600 in payments (new threshold for 2025). This document will have whatever name and SSN/TIN you provided when setting up the account. If you used an alias but your real SSN, the IRS will still be able to match the income to you. You don't actually "combine" documents under different names. All income tied to your SSN needs to be reported on your tax return regardless of what name is on the 1099. You'll report this income on Schedule C as self-employment income. Regarding background checks, they typically look for criminal history, not tax filings. However, if you're using a formal DBA (Doing Business As), that would be public record. You're not legally required to disclose aliases unless specifically asked on a form or application. The specific nature of your self-employment isn't detailed on tax forms - they just show income categories. Your Schedule C would simply list something like "Digital Content Creation" or "Online Services.

I tried figuring out all this tax stuff on my own last year when I started selling digital artwork, and it was SUCH a headache until I found this AI tax assistant at https://taxr.ai that basically saved my sanity! It analyzed my situation with all my different income streams and explained exactly which forms I needed. The coolest part is you can literally upload your tax documents (even if they have different names) and it tells you exactly how to report everything correctly. I was using a pen name for my art sales and it explained how to handle that situation perfectly. It also explained what business category to list that wouldn't raise any red flags but was still accurate. Totally worth checking out if you're doing any kind of side hustle with complicated tax questions.

Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it was actually incredibly helpful! I uploaded screenshots of some PayPal payments I'd received using my artist name, and it immediately explained exactly how to handle the different name situation. It walked me through creating a simple business category description that was accurate without being too specific (went with "Digital Content Creation"). It also showed me exactly which forms I'd need for my 2025 filing and calculated what I should set aside for quarterly estimated payments which I didn't even know I needed to do! For anyone else navigating self-employment with privacy concerns, it was way more helpful than the generic articles I kept finding online.

Something else to consider - if you're going to be dealing with the IRS about any discrepancies or questions, good luck actually reaching a human being! I spent THREE WEEKS trying to get through to someone after getting a letter saying I owed more taxes on my side income. I finally found this service called Claimyr (https://claimyr.com) that actually got me through to a real IRS agent in less than 30 minutes. They have this crazy system that keeps calling and navigating the phone tree for you, and then calls you when they get a human. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Honestly, it was such a relief to actually talk to someone after weeks of frustration. With all these alias/name issues you're dealing with, you might need to talk to an actual person at some point.

I need to eat my words and apologize to @19. After all my skepticism, I tried Claimyr when I got a CP2000 notice about unreported income from my side business (I sell custom 3D prints under a business name). I was absolutely SHOCKED when I got a call back in about 40 minutes saying they had an IRS agent on the line. The agent helped me understand exactly what documentation I needed to provide to clear up the discrepancy between my business name and personal tax filing. This saved me from what could have been a huge headache since I was using a trade name that wasn't formally registered. For anyone juggling multiple income streams or using different names, being able to actually talk to someone at the IRS is invaluable.

One thing nobody's mentioned yet - you should consider setting up an LLC if you're worried about privacy. It creates a layer of separation between your personal identity and your business activities. I sell digital products (not saying what kind 😉) and having an LLC means I can use a business name on payment platforms while still keeping everything legally clean. The income passes through to your personal taxes, but your business name is what's visible to customers. Costs about $50-300 to set up depending on your state, but it's worth it for the peace of mind.

Just FYI - I've been in adult content creation for years and one thing to remember is that you NEED to keep track of ALL your business expenses. This includes: - portion of internet bill - phone used for pics - lighting equipment - pedicures/foot care (yes, really!) - props/backgrounds - subscription to content platforms - website costs if you create one These are legitimate business deductions on Schedule C that will reduce your taxable income. Use an app to track everything and take photos of receipts.

As someone who's been through the IRS audit process for self-employment income, I want to add some important points about record keeping and documentation. First, regarding deductions - yes, you can deduct business expenses including personal care that's directly related to your content creation (like pedicures for foot photography). However, you need to be able to prove these expenses were "ordinary and necessary" for your business. Keep detailed records showing the business purpose. For the alias/PayPal situation, I'd strongly recommend using your legal name with payment processors. The IRS computer systems automatically match 1099s to your SSN, and discrepancies can trigger correspondence or audits. It's not worth the hassle. One thing nobody mentioned - you'll likely need to make quarterly estimated tax payments since you won't have taxes withheld. The IRS expects payment as you earn, not just at year-end. Use Form 1040ES to calculate and pay these quarterly. Also, keep immaculate records of ALL income and expenses. Use a separate bank account even if you don't form an LLC. During an audit, the IRS will want to see clear business records, not personal accounts mixed with business transactions. The key is treating this like any legitimate business - because that's exactly what it is from a tax perspective.