- Be Aware of Appropriate Deductions Available
- Understand Your Tax Brackets
- Utilize Tax Software For Ease
Most working musicians are considered “self-employed” regarding filing their taxes. You will be responsible for paying both the employee’s and employer’s share of Social Security and Medicare taxes.
If you make your money on one-off sales of your work or from private parties who hire out your skill, keep documentary proof of every dollar you make with detailed receipts.
Do Musicians Have to File Taxes?
With 2023’s April 18th tax deadline looming, here is a beginner’s guide to the tax requirements and forms every musician needs to understand to file properly. One of the most important documents you be familiar with is the 1099 — the pesky little form that businesses need to fill out, in order to report payments made to non-employees. There are several different types of 1099 for different types of payments.
Tax Forms for Self-Employed Musicians
As a self-employed musician, you will need to file your taxes using a different set of forms than those used by employees. Here are the tax forms and documents that you may need to file your taxes as a self-employed musician: Schedule C (Form 1040) or Schedule C-EZ (Form 1040): These forms are used to report your business income and expenses.
How to do taxes as an Independent Musician?
Your music is your business. It’s important to have your taxes in tip-top shape! As a self-employed musician, you have various tax deductions you should definitely be taking advantage of.
The IRS tax rules state that if your net self-employment earnings from music-related activities exceed $400, you’ll have to pay tax on that income. So, it’s important to file your self-employment earnings on time as an independent musician.
There’s an easy trick all independent musicians can use to save money on their taxes. By writing off all the ordinary business expenses you run up every day, you can easily lower your tax bill several octaves. Keeping detailed records is crucial when it comes to doing taxes as a musician.