FAQs

  • The Only Consultant® and Prisma Tax Group are both owned by Katherine Studley. Prisma Tax Group was created to support the unique needs of The Only Consultant’s clients. Our team is made up of experienced accountants, bookkeepers, and customer success staff, all dedicated to making the tax process clear and manageable for you. We also have strong connections to industry professionals who are "spicy-friendly," including financial planners, mortgage lenders, attorneys, and realtors.

    We know that taxes and entrepreneurship can be overwhelming, so we take the time to ensure every client fully understands their tax situation. Once you complete our onboarding paperwork, you’ll receive a tailored quote. Payment is required upfront before any work begins. If you’re ready to become a client, feel free to contact us!

  • Filing taxes isn’t just about staying on the IRS’s good side (though that's important!). It opens up a lot of opportunities that can benefit you financially, both now and in the future. Here’s what filing your taxes can help you with:

    • Qualify for a mortgage, car loan, or credit card

    • Write off your business expenses

    • Get access to tax credits, deductions, and even stimulus payments

    • File for unemployment when needed

    • Qualify for social security benefits

    • Set up retirement plans

    • Invest with confidence

    • Qualify for financial aid (including college)

  • We won’t lie, spicy tax deductions are way more fun but of course we can help anyone looking for a non-traditional tax experience.

    This includes:

    • Realtors

    • Hair Stylists

    • Freelancers

    • Creative Entrepreneurs

    • Beauty Professionals

    • Small Businesses

    • W-2

    • American Expats and Digital Nomads

    • Travel Nurses 

  • The Only Consultant® and Prisma Tax Group are remote-first, so we can help you no matter where you are in the USA. All consultations are done over the phone (not via video call—between content creation and the number of calls I take, Zoom just isn’t feasible <3). Occasionally, I do a city tour and offer in-person consults. Be sure to follow me on Instagram for updates and see when I’ll be in your area!

  • The IRS defines a business expense as something "ordinary and necessary" for earning your self-employment income. In other words, it takes money to make money! Since running a business involves costs, the IRS lets you "write off" business expenses to reduce your taxable income. Just keep in mind, these expenses must comply with IRS guidelines (so, no personal or extravagant spending). If not, you could face penalties and interest in the event of an audit—definitely not worth it! You can learn more here: IRS Pub 535.

  • There’s no one-size-fits-all method for tracking your business expenses—just pick a system that works for you and that you can stick with. You can use notes on your phone, a spreadsheet, paper records, or a program like QuickBooks. I’ve even created custom spreadsheets specifically for OnlyFans creators and strippers, and you can grab them for FREE!

  • Track all cash payments, including the date, amount, and purpose. Use a spreadsheet, accounting software or even a journal. All income—including cash—must be reported to the IRS. To help with this, you can download our free expense trackers available here!

  • Yes! Every dollar you earn is taxable.

  • This depends on the specifics of your arrangement. For 2024, the IRS gift exclusion is $17,000, but that doesn’t automatically mean you don’t need to claim income from a sugar daddy. So, if someone gives you a gift of $17,000 or less, neither of you has to report it or pay taxes on it. However, if the gift is over that amount, the giver may have to report it to the IRS and could owe gift taxes, but only after they exceed a lifetime limit (which is currently in the millions)

    If you're in a sugar baby arrangement where you’re exchanging companionship or services for assets or cash, this could be considered self-employment income and may need to be reported as part of a small business. While you’ll need to pay taxes on that income, reporting it can work in your favor, helping you qualify for things like mortgages or credit cards, and allowing you to deduct business expenses against the income. This is better discussed on 15-minute consultation.

  • No! You can still deduct your business expenses as a sole proprietor (which is the default for anyone who receives a 1099-NEC).

    However, if you’re interested in the other benefits of an LLC—like separating your personal liability from your business—then setting one up might be worth considering. You can get started on that anytime!

  • If you’re a sole proprietor or a single-member LLC, your business income is included on your personal income tax return, so there’s no need for a separate filing. However, if you’re part of a partnership LLC or a corporation, you’ll need to file a separate business tax return.

  • Many self-employed individuals, including content creators and freelancers, fall behind on their taxes. We can help you catch up and file back taxes while ensuring you avoid future penalties. Contact us for help getting back on track.

More questions? No problem.