Your Sugar Baby net income will be subject to ordinary tax as well as self-employment tax. This is something that people often miss and so their tax bills are higher than they expected. When youre self-employed you also have to pay this.

Is accepting money as a sugar baby illegal?

The mere act of advertising for a sugar daddy or sugar baby is not illegal, Ronald Weitzer, a George Washington professor who studies the sex industry, told HuffPo. The only illegal aspect would be if the individual receives some kind of direct payment or material compensation for sex.

Can you be too old to be a sugar baby?

Though there are no age limits for sugar babies and sugar daddies, its common for a sugar daddy to be significantly older than the sugar baby. And in many cases, the sugar daddy is married. Having an extramarital sugar baby requires some level of discretion.