Its a subject matter that often takes a back seat to “how much should I ask for?” or “how much should I charge per visit?” but one that can have far more serious consequences.
First of all, we think its a good idea to use your sugar allowance on essentials such as bills and putting some aside for investment or saving. A lot of Sugar Babies just want to rush to the mall and buy that pair of shoes or handbag they’ve been eyeing for weeks, but while its nice to splurge, make sure you are securing your future as well as securing your present.
When it comes to reporting your sugar income, you should report your earnings on your taxes. Your Sugar Daddy is more than likely a successful and canny businessman and he is probably reporting the gifts as charitable donations, so you don’t want any issues on that end. You should consult with him also on that so you are both on the same page.
Even if you receive gifts that you intend to sell at a later date, you should still be reporting the income. While this opinion is not always the most popular its the right thing to do and you don’t want to get not he wrong side of your tax authority.
Happy sugaring ladies!