- #GUITAR SHED TAX ID HOW TO#
- #GUITAR SHED TAX ID CODE#
Bruce Springsteen’s recent stay at the Four Seasons Hotel in Boston would for many other working musicians be considered “lavish and extravagant” by the IRS. It does not take much analysis to see that these guidelines are not an exacting science.
Must “ NOT be lavish or extravagant under the circumstances”. Incurred in connection with your trade, business, or profession. For the IRS, all deductible business expenses are those that are: In the balance of this article we will try to break them down to their component parts to make the issues understandable. T he goal is first and foremost to lower your taxes! The musician/performer has a number of tax deductions that are unique. The self-employed musician will also usually be required to pay estimated quarterly taxes on Form 1040-ES (if the tax liability is to exceed $1,000). All these forms are part of the year-end 1040 income tax filing. The performer may also file form 8829 for the home office deduction and will be required to pay self-employment tax (Schedule SE) on their net income (profit) as well as federal income tax. The musician/performer usually files a “Schedule C” as part of their regular 1040 income tax form (this is where you report all those nasty 1099s you received last year!). In a legal and taxpaying sense this means that your “business” as a musician and you as an individual taxpayer are one and the same. Most working musicians are considered “self-employed” in regard to filing their taxes. In so doing you will pay less in taxes and you will be less likely to fall prey to erroneous tax information and disreputable advisors. #GUITAR SHED TAX ID HOW TO#
I often use the analogy that you may not need to know how to fix your car but it is helpful to know how it basically works.
#GUITAR SHED TAX ID CODE#
The secret to overcoming this phobia is to develop an understanding of the mechanisms of the tax code and some simple, effective ways of complying with this onerous task. Musicians avoid the whole matter and consequently leave themselves vulnerable to bad advice. The artist temperament simply does not interface well with the exacting, rule-filled world of federal and state taxation. Taxes and administrating the business of music are often last on the list of concerns for the working musician. Musicians and taxes don’t seem to mix very well.
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