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1099 and tax time as a band

Discussion in 'Band Management [BG]' started by ariff, Apr 1, 2014.

  1. ariff


    Nov 28, 2007
    Lawrence KS
    I am the poor guy that has had to sign the W-9’s for our band. I got three 1099’s back totaling about 2100.00 this year. It is not enough for me to issue 1099’s to all the members (under 600.00 per member) so what would I do in this situation? Right now I have put this 2100.00 in as income as a business and there is an option to put in there that I paid employees from this income.. I am not sure what to do. Because as I have it now it looks like I made 2100.00 which is not true I only made 1/7th of that.. I am not sure how to tell the IRS that tough. Hoping someone here might be able to get me on the right track on how to properly deal with this.. Thanks!
  2. Vintagefiend

    Vintagefiend I don't care for 410 cabinets at all.

    Aug 6, 2013
    Columbia, MO
    Get an LLC for your band, save all your receipts, and zero out next year.
  3. modulusman

    modulusman Banned

    Jan 18, 2004
    $2100.00 is not that much money really. In the past I wrote a note and sent it with my return stating that I only made 25% of the total since I was in a 4 piece band. Never heard anything from the IRS so they must have accepted it. This was years ago so it might not work now.
  4. Phalex

    Phalex Semper Gumby Supporting Member

    Oct 3, 2006
    G.R. MI
    When I had to deal with that, my tax guy used something that basically said all of the musicians were subcontractors. I paid taxes on my share, and the other guys were responsible for theirs.
  5. buldog5151bass

    buldog5151bass Kibble, milkbones, and P Basses. And redheads.

    Oct 22, 2003
    Wouldn't hurt to pay the band members by check so you have proof it didn't all go to you.
  6. fdeck

    fdeck Supporting Member Commercial User

    Mar 20, 2004
    Madison WI
    HPF Technology LLC
    I'm not an accountant. But here's what I suggest.

    1. Look up form "Schedule C-EZ" and fill it out. Line 1 is the money you took in. Line 2 is how much you paid to band members. Line 3 gets carried over into your main tax form.

    2. Look form 1040. I think it's line 12 that's "profit or loss from business." That's where you enter the amount computed above.

    Next year keep better records. Pay band members by check as suggested. Don't bother with an LLC, it doesn't simplify your tax preparation or make you any more legitimate in the eyes of the IRS.
  7. buldog5151bass

    buldog5151bass Kibble, milkbones, and P Basses. And redheads.

    Oct 22, 2003
    LLC is only for liability purposes, and cost several hundred dollars per year. Keep records of the money.
  8. ariff


    Nov 28, 2007
    Lawrence KS
    Thanks for the info.. I do have records and I also opened up a small business acct for the band as well. So I have been paying the band members by check.. However this is just within the last few months or so.. I'll hopefully know how to do it better next year.