TAXES 101 FOR INDEPENDENT MUSIC ARTIST

                                        TAXES 101            

           YOU ARE MORE THEN AN ARTIST YOU ARE A                                                    BUSINESS.

Taxes is a word that has humbled many in the USA for years and it seems like it is getting worse as taxes are getting higher, the more you make the more they take. Who is they 
UNCLE SAM, THE MAN, JOHNNY HANDOUT whatever you call the GOVT. lol. 

The truth is that if you know what your doing the pain of doing taxes and setting them aside doesn't have to be that bad. 

One of the first thing you have to do when you decide to become a music artist on the business side of things is look up tax laws for musicians and performers. Here you will find a few vital points of info that will help you on the way. 

Form 1040  - Covers self employed - which is you the music artist, even if you have a day job. 

Schedule -c  - Help report how much money you made or lost in the year doing business

Schedule C ez - You can use this form if your a company of ONE or Sole Proprietor 

Schedule SE - Help calculate the amount of self employed taxes owed to govt. as small business


Once you get familiar with the phrases, terms and govt websites etc. Now you have to put in some paper work and computer time.  A little effort  is needed to finally get your small business tax id, even a single person. YOU ALONE, can qualify for a small business id; and you don't have to pay a 3rd party business to get this done for you. Take about 20 minutes to get online and fill out the forms yourself. Go here to get it going IRS website

After you file to get your small business id it will take between 30-45 days to arrive. 
now you are officially a small business. ( simple right? ) 

Now that you are MUSIC.INC ( example)  you need to start keeping books, nowadays it is so much easier with even apps like quickbooks, intuit, turbotax etc that allow you to enter deductions etc from your phone or tablet asap. 

After you start to master how to enter your deductions into your small business tax forms via digital it is very important to turn one of your ( JORDAN SHOE BOXES OR SAFE) lol. into a receipt box. Why you ask? in case of an AUDIT. 

Receipt tip- always right on the back the date, store or place or purchase and the amount- 
( for some dumb reason the ink on receipts fades after 60 days or so) 
also keep your receipts for at least 3 years. 

When making purchases it isn't necessary to have a separate bank account or card, but it does make it easier to keep track of what your spending  and what can be deducted. You don't want to mix personal use items with your business items, the IRS does not play and they may let you get away with fraud for a little bit then drop the hammer on you, that is why the receipts and keeping records is so important. 

Most people who run business attempt to set aside some time every 3 months to add all the receipts, deductions etc on the tax forms and that way you won't fall behind, some even pay taxes owed quarterly.  Music artist can choose this method, but if your blessed to be on the road, or have a day job and not enough time for this. then keeping all receipts or at least having a separate account with all bank statements that reflect business use will keep you covered when April 15th shows up. NOW WE ALL HAVE UP TO APRIL 18TH and if you are late filing you have an amnesty option. So I guess UNCLE SAM is not that bad after all.  
GOOD LUCK.



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