To not derail this thread, I'll just put you on my ignore list. Then I won't be tempted to respond to this nonsense any more.
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Venue pays with a check. ..
- Thread starter kikstand454
- Start date
So is this a viable option? Its seems the easiest- albeit most expensive way to go for someone who files a standard deduction normally.
I'm not sure how anyone else in the band does it. I keep track of my band income and declare it on my tax return. If I was playing more than a couple of times a month I'd use a schedule c.
Please keep the politics down to a dull roar. Taxes are not politics. Opinions on what political purposes the gummint uses your tax dollars for gets a hair over the politics line. Very valid BM forum discussion, as long as you can resist the temptation.
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Hi,
I would suggest consulting a tax professional, someone that specializes with musicians. In the meantime, here's how it's worked for me for decades.
I almost always get paid by check from the band leader. The band leader usually gets paid a check from the venue or client. I get several 1099s from the band leader and/or the venues (when I'm freelancing) at the end of the year. I file a Schedule C with my music business (self-employed/private contractor) income and deductions, along with my regular 1040.
The bandleader does their own (business) taxes, deducting the amount the band members are paid from their total income. The 1099s from the band leader to the band members show the IRS that the BL did not make all that money as personal income. It's deducted as a business expense, just like I deduct milage, new gear, strings, cables, costumes, meals, etc, from my music income on the Schedule C.
I seldom get paid cash but claim it when there is a paper trail. If I'm playing a casual gig in a pick-up band, like someone's backyard birthday party, and the birthday boy pays us cash, that is often not claimed as income. But that happens only a few times a year.
Thank you for your indulgence,
BassCliff
I would suggest consulting a tax professional, someone that specializes with musicians. In the meantime, here's how it's worked for me for decades.
I almost always get paid by check from the band leader. The band leader usually gets paid a check from the venue or client. I get several 1099s from the band leader and/or the venues (when I'm freelancing) at the end of the year. I file a Schedule C with my music business (self-employed/private contractor) income and deductions, along with my regular 1040.
The bandleader does their own (business) taxes, deducting the amount the band members are paid from their total income. The 1099s from the band leader to the band members show the IRS that the BL did not make all that money as personal income. It's deducted as a business expense, just like I deduct milage, new gear, strings, cables, costumes, meals, etc, from my music income on the Schedule C.
I seldom get paid cash but claim it when there is a paper trail. If I'm playing a casual gig in a pick-up band, like someone's backyard birthday party, and the birthday boy pays us cash, that is often not claimed as income. But that happens only a few times a year.
Thank you for your indulgence,
BassCliff
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never been a problem or issue with us. We play a lot of gigs that pay with check...especially during the Spring
festival season. Most city sponsored gigs will pay with a check.
For that very reason we set up a band bank account. makes distributing the payroll easier too.
festival season. Most city sponsored gigs will pay with a check.
For that very reason we set up a band bank account. makes distributing the payroll easier too.
Ya can't claim the expenses unless ya report the income.
Therefore, I report the income. Every penny of it.
I don't care who else does.
Therefore, I report the income. Every penny of it.
I don't care who else does.
If you are operating as a business you have to show a profit 3 out of 5 years so I don't think you can "usually" do this. If it's a hobby you can't deduct more than you make in hobby income. I'm not an accountant but that's the way I understand it.
I, personally, get more upset by the Aerobic Betty's than anything else. They play all sorts of Music...usually pay no Royalties...(Or Taxes, for that matter.)
After the ridiculous ass taxes and filing fees and jumping a tax bracket- yes.... that's about what you net.
Don't forget to tip your bartenders .....
That's generally right, but the "3 of 5 years" is a presumption rather than a hard and fast rule. Income is considered business income rather than hobby income if it results from an activity that is carried on with a reasonable expectation of being profitable. The taxpayer is entitled to a presumption that income is business income rather than hobby income if he has a profit in three of the last five years. If he doesn't have a profit in three of the last five years, then he can still prove that the business is carried on with a reasonable expectation of profit, but he does not get the benefit of the presumption.
After the ridiculous ass taxes and filing fees and jumping a tax bracket- yes.... that's about what you net.
Don't forget to tip your bartenders .....
Jumping a tax bracket only increases your tax on the amount over the bracket cutoff. There is a common misconception that if you make $20 over the cutoff you will pay more taxes for your entire income rather than the amount over the bracket cutoff. The biggest hit for the average joe when you go over a certain amount of income is no longer qualifying for EIC.
There is always the solution of setting up an LLC in the name of the band, or name or your "management company", and then collecting and paying out to the members from the business account. Then no one person carries the weight of the tax burden.
And you only have to prove it if you're audited, which is unlikely for the typical broke musician.
Me, I just want to make sure the government gets everything it deserves.
yeah, I've shown an operating loss for more than 5 years on my personal taxes, and nobody said nothing.
before that, I was not filing consistently like that every year. Only on years when I knew it would make a difference.
I think as long as you have a pile of 1099's, and report it, and make sure it is a close wash against your expenses, nobody gonna complain.
I always use my studio rent to offset most of my 1099 income, especially since I share my studio rent with 2 other bands but I am the only one who claims the expense, because I am the leaseholder.
before that, I was not filing consistently like that every year. Only on years when I knew it would make a difference.
I think as long as you have a pile of 1099's, and report it, and make sure it is a close wash against your expenses, nobody gonna complain.
I always use my studio rent to offset most of my 1099 income, especially since I share my studio rent with 2 other bands but I am the only one who claims the expense, because I am the leaseholder.
The band isn't my money maker, so I usually just play because I'm too tired to find a new hobby.
For relevance: We are always paid in cash.
For relevance: We are always paid in cash.
