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Do you declare your income from gigs?

Atshen

Atshen

Mar 13, 2003
5,089
4,491
51
Grim Cold Québec
#1
I guess pro musicians do it all the time. But you, the week-end warrior, the hard-working nine-to-fiver who plays a few humble gigs a month, do you declare the money you earn from gigs?

Also, I'm sure some people on this board could guide us through the meanderings associated with the declaring of your musical income.

Let's discuss!
 
#2
i do. i want to make some social security payments via the self employment tax (i think that's the way it works - my accountant handles this this for me, he just tells me what i need to pay)

i also get union pension on casual gigs and studio dates.

if all goes well, i will not have to worry toooo much when i'm as old as Thor.
 
#5
I do. It's just easier for me to use the music as a business and write-off depreciation on all the gear i seem to "need" during the year. It has worked out pretty well though I've been able to use the studio in the basement to generate some income and therefore write off a certain percentage of household expenses. I can also take a deduction for wear and tear on my vehicle, gas, insurance and mileage. I play anywhere from 15-25 gigs a month so I needed a way to offset the income since most of the gigs 1099 me. As long as I am trying to make a profit I can expense a certain amount of loss, I really just want to break even. This does help to justify a certain amount of GAS though.

And to Bustin Justin: Jane's Addiction, Ritual de Lo Habitual, Stop
 
#6
Hey, thanks guys! I thought this would turn into some kind of megathread, since there are many of us weenkend warriors. But I guess the small popularity of the "Band Managenment and Performance" is the culprit here. :hmm:

Anyway, NJL told us that he's part of the union. Anyone else? I'm considering joining "La Guilde des Musiciens du Québec". What are the pros and cons?
 
#7
my biggest thing with the union is that it's a great tool for your toolbox. i have many tools and this is just one of them.

dues are cheap too, for me down in san antonio, its $35.50 a quarter or $11.17 a month. dues are tax deductible.

ombudsman, you have a PM
 
#9
I always report some. It gives you credibility with the IRS. I have a business license too (I book bands in a local club) and this is a very useful, for recording your expenses and claiming on your taxes. Problem is the vast majority of the venues we play pay in cash. Not really a problem though I guess. It creates a paper trail if people start asking questions.
 
#12
Yup I do. I report my income as well as take deductions for expenses.

If you spend money in the process of making money, you can deduct it.
Gear, Stage Clothes, Lessons, CDs, Mileage, Phone Calls, Union Dues, Studio Expenses, Promotional items, etc. are all deductible if they are used for your "business".

Keep in mind that in the US, if you are reporting losses for many years, you increase your chance for an audit. Another option is to claim hobby expenses instead of business expenses. That will allow you to deduct the amount spent on your hobby up to the amount earned from it.
 
#15
I'm pretty much in the same boat as Jive1 when it comes to my approach with taxes. I report everything and deduct as much as possible. Years ago when I played full time I go into deep sh** with the IRS for about $10,000 in back taxes.
I worked part time at UPS for 3 years just to pay it off. I will never F with the IRS again. :scowl:
The major thing to remember is that most places keep a record of who they paid and for what. Eventually someone is going to be responsible for the taxes. That person if it is not you will send you a 1099. If you run up a large bill it can be very difficult to pay off. Until it is paid in full you will keep paying penalties and interest. That sucks!

Pay your taxes, it's not worth the hassle.
 
#16
I pay tax on the money I spend on my hobby, which infinitely outstrips the money I make from gigs (like, nothing!). I dont decare the very small amount of cash I make through giving lessons... it's not worth the effort
 

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