Advice on handling tax fun

[Greenman72]

That total earned is regardless of 1099s you send out... At least I think so? Probably a good question for a CPA

If only we knew where to find one…..

the above answers are correct. 1099s increase your gross income, expenses (including 1099s paid out) reduce your income, and you pay tax on the net.

 

[vlad_drac]

Got it. Thanks for the clarification. 40 years on this planet and I still screw up net and gross...

And I'm following along with your other thread. Very helpful stuff there.

 

[jwasbury]

The one thing I've been doing for pay nearly as long as playing bass is being an accountant/CPA. Wide spread of info in this thread, from appallingly bad advice to spot on advice - naturally worth every penny the OP paid for it. If you're having difficulty separating the wheat from the chaff, I will echo the others here who have advised that you hire someone who can.

 

[Pocket Dave]

The one thing I've been doing for pay nearly as long as playing bass is being an accountant/CPA. Wide spread of info in this thread, from appallingly bad advice to spot on advice - naturally worth every penny the OP paid for it. If you're having difficulty separating the wheat from the chaff, I will echo the others here who have advised that you hire someone who can.

This is the best advice.

Also, have a CPA file your taxes electronically. It reduces two red flag exposure points for being messed with.by the IRS.

 

[Greenman72]

What kind of CPA? Industry? Public? Tax? Audit?

 

[Greenman72]

For those who ask "Should I get an LLC?", the answer is....LLC stands for Limited Liability Company. It is a legal entity that limits your legal liability against accidents, creditors, etc. So...are are your liabilities (both present and yet to come) and why might you want to limit them?

If the answer is "I don't have any liabilities, now nor ever.", then why would you want to go through the legal hassle of creating and maintaining an LLC?

(edit - strange that I can edit this, but not my previous post)
FYI - I'm "technically" a CPA, but less "accountant" and more "financial planner who also has a tax practice". I have never worked in industry or audit. Moreover, IANAL. (I Am Not A Lawyer)

 

[P. Aaron]

This year, our financial advisor had me tabulate mileage, which is easy since I had everything in my calendar. Measure out my practice space, and obviously, my 1099 for gig pay which was decent.