Musicians and taxes, its that time again. I did a quick search on TB, and did not find much information. So, here is some information I believe you might find helpful. The information that follows might not be all that useful for 2017, some of it is old. but it might be helpful for 2018. The tax landscape has changed. I would like to introduce myself, . bass player . have an MBA . Do taxes part time during tax season. . Hobby bassist, not professional Its that time of the year when musicians are reminded about taxes I am not going to give tax advice, or legal advice, I am going to make some business suggestions that can make your life more difficult, less difficult. I will try to keep it simple, but this is a complex subject. Record Keeping Use an accordion file to save your papers. Use schedule C or Schedule E categories to sort your information, your tax person will love you for it. Have someone do your taxes, someone that provides some sort of guarantee about the results. At least one company provides up to $6000, coverage in underpaid taxes as well as covering penalties and interest. (The key here, your information has to documented and accurate, if you forgot something, then that's not covered. ) The next thing, is: who ever does your taxes will probably charge you by form, and this is where it gets expensive. So you will have to make some decisions. You might have to make a decision about filing as a business or an individual, the rules are different. You hear, you need to get a 1099 if you make over $600. If you are self employed, the threshold is lower, about $435. Ask for the proper documents, and provide the proper documents to who ever does you taxes. Generally, As a musician, you might have several income sources, and the income sources can put you into different types of business models. Identify what business models your music interest place you. Hobby partnership sole-proprietor/LLC some of the above/all of the above. Assemble a library of resources IRS documents website information (pdf info on your computer and a thumbdrive) hard copies of information. Advice from trusted and untrusted sources. (Until you completed your research, consider my suggestions, untrusted). Make sure you have the necessary tax payer numbers SSN/ITIN EIN(s) State business number(s) Local licenses? I am including some websource information, with highlighted topics. Some web sources: blog.sonicbids.com/taxes-101-what-self-employed-musicians-need-to-know by Jamie Davis-Ponce make the accounting easy set up a separate bank account use separate credit/debit card for business purposes Save your receipts Use cash accounting Know your forms sole-proprietors form 1040 schedule C or schedule C-EZ schedule SE tax forms for bands (partnerships) form 1065 (filed as a group) schedule K-1 (for each partner) form 1040 (filed by each partner Schedule E Schedule SE Additional forms 1040 es Form 1099, w-9's Consider Professional Help Don't miss the Deadline ALL TAX TIPS FOR MUSICIANS | Associated Musicians of Greater New York – Local 802 several articles On the Road: Touring, Taxes, and You by Michael Chapin per diem deducting travel How to report reimbursements Meals and business entertainment my note: know the federal meal allowance Other travel expenses Taxes in two States Tax Tips for Musicians by Micheal Chaplin job expenses: 1040 schedule A business expenses: from 1099 misc, generally Schedule C A letter from an employer stating the necessary requirement of the expenses List of some business and professional expenses for Musicians Keep records; daily diary or ledger car log with daily record (this is a tough one) IRS publications and forms that might be useful: Pub 17 (“ your federal income tax” part 5?) Pub 535 (“Business Expenses”) Pub 463 (“travel Entertainment, Gift and Car Expenses”) Pub 946 (“How to Depreciate Property”) Form 2106 (“Employee Business Expenses”) Form 4562 (“Depreciation and Amortization”) Buying an expensive instrument? Don't try to avoid sales tax New York wants its money; discussion, may be applicable to other states. Tax Tips for Musicians by Walter Gowns (Q&A) Business or Hobby? Business Expenses; whats claimable? What happens if I am Audited? Issues when touring Tour outside of USA Benefits of Filing Educational credits Qualified Performing Artist special provisions Tax tips for Musicians by Gould, Kobrick and Schlapp highlights for 2012 tax year, use this a basis to do your own research Income & Related Expenses Other Expenses Home Office Expenses Expenses for uniforms (why your band t-shirt is valuable) Travel Expenses Job Expenses and Education Proceed with Caution If you make less than $16K as a musician, check out this tip! IRS pub 463 www.artstaxinfo.com/musicians.shtml by Jason Riley CPA Musicians and Singers expense checklist pdf and excel income worksheet for musicians and singers pdf and excel sample tax return from another source Introduction income for the musician Travel and Meals (osa.gov) Automobile and Vehicle Expenses Equipment Home office or Studio Other Unique Deductions Use a tax professional.