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New Tax Bracket

Discussion in 'Band Management [BG]' started by TMBTC, Jun 12, 2018.


  1. Pacman

    Pacman Layin' Down Time Staff Member Gold Supporting Member

    Apr 1, 2000
    Omaha, Nebraska
    Endorsing Artist: Roscoe Guitars, DR Strings, Aguilar Amplification

    Incorrect. The new rules only count towards employees (orchestras, military bands, possibly cruise ships). Schedule C deductions still stand for contractors.
     
  2. tycobb73

    tycobb73

    Jul 23, 2006
    Grand Rapids MI
    The IRS gets a copy of the 1099 along with a recap of all the 1099's the business sent out on a 1096. A trucker didn't do this for 3 years. IRS came to him and said "we know you made $300,000 a year for the past 3 years based on copies of 1099's that we have. You'd better do some tax returns with expenses against that income or you will pay taxes on all of it." He came to me and I gave him my special rate, otherwise known as the "I'm gonna ef you up the ass because you have no other choice" rate. Of course he still had to pay interest and penalties.
     
    sigterm likes this.
  3. sigterm

    sigterm ;) ;) ;), love y'all Supporting Member

    Feb 5, 2003
    Atlanta G of A
    This is real world and why you should get advice before tax season
     
  4. You can't take the standard deduction and itemize at the same time. One or the other. Most people with small businesses (musicians included) file everything on their personal tax unless their incorporated or otherwise business protected.

    You CAN still itemize and do a schedule C, but with the higher personal deduction you are more likely to just list the income you make and take the standard deduction and be better off.
     
  5. Drgonzonm

    Drgonzonm

    Sep 4, 2017
    American SW
    OP,
    Go to the major tax prep companies. And speak to one their enrolled agents. Ask for one who specializes in musicians. If you go to a cpa, then use one who again specialize in musicians.
    I don't know your current tax bracket, it was probably either 10 or 25 percent. Your tax bracket will probably 25 percent. So from each pay that's 40 percent of the pay that you need to put aside. And we haven't spoken about state taxes. Or local income taxes God, help you if you are playing in multiple states. There some states that are outrageous.
    You can lower your taxes by depreciating your equipment, and keeping records.
    Let's say your tax bracket is 25, if you make 4000, then you might have pay estimated taxes.
    So it is important that you see that tax pro
     
  6. Pacman

    Pacman Layin' Down Time Staff Member Gold Supporting Member

    Apr 1, 2000
    Omaha, Nebraska
    Endorsing Artist: Roscoe Guitars, DR Strings, Aguilar Amplification

    You take the standard deduction and still file a Schedule C, itemizing business expenses.



    Can I Deduct Business Expenses & Still Have a Standard Deduction?
     
    instrumentlevel likes this.
  7. Hah, they’re even going after us Canadians. I get calls from the IRS saying I’m about to be arrested for tax evasion! :D
     
    Pacman likes this.
  8. tycobb73

    tycobb73

    Jul 23, 2006
    Grand Rapids MI
    This is where itemize gets tricky. I know how the word is used but i don't think it should be used for business expenses. All small business owners only pay tax on the profits of the business. Your taxable income is determined after any business expenses are taken out. Im trying to make money in music so i bought a bunch of music equipment then deoreciated it all immediately. My family taxable income was less than the sum of our w2's and 1099's because of all the equipment. Then the process of itemizing and deductions and ashlk that crap was started.
     

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