Join Richard Stim for an in-depth discussion in this video Estimated taxes, part of Taxes and Accounting for Music.
- The IRS doesn't want to wait until April 15th to get paid.…For that reason, Uncle Sam requires that self-employed…business people pay their taxes in four installments…spread out over each tax year.…If you fail to make these timely payments and you underpay,…you'll be hit by a penalty at tax time.…If you have to pay federal estimated taxes, you may also…have to pay state estimated taxes, unless you live…in a state where income is not taxed.…Alaska, Florida, Nevada, South Dakota, Texas,…Washington, Wyoming, New Hampshire, and Tennessee.…
You must pay estimated taxes if you are a sole proprietor,…partner in a partnership, or a member of an LLC, and you…expect to owe at least $1,000 in federal tax for the year.…If you've formed a C corporation and expect to pay $500…in taxes, the corporation will have to pay estimated taxes.…However, if you paid no taxes in the last year, you don't…have to pay any estimated tax for the current year.…How much do you pay?…If you did not pay estimated taxes last year, download…
In this music business course, author Rich Stim covers the most important tax issues for musicians. He starts with the basics: determining if music is a hobby or a business for you and how that affects your deductions. He then discusses money and the sources that determine gross income. From there, he shows the items you can deduct from your gross income—mileage, studio spaces, touring expenses, and other miscellaneous deductions—that can add up to big savings. Next, he covers the different tax rules for individual musicians, bands, general partnerships, LLCs, and corporations, and explains how to get an Employer Identification Number (EIN) when you need one. Finally, Rich navigates through the tax forms, including Form 1040, Schedule A, Schedule C, Schedule SE, Schedule K-1 (Form 1065), Form 4562, Form 8829, and Form 2016, and provides advice on hiring a tax preparer or going the DIY route with tax software.
DISCLAIMER: This course is taught by an attorney (or other instructor) and addresses US law concepts that may not apply in all countries. Neither LinkedIn (including Lynda.com) nor the instructor represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate information to help viewers understand the basics of the topic presented. The views (and legal interpretations) presented in this course do not necessarily represent the views of LinkedIn or Lynda.com.
- Managing bookkeeping
- Counting income
- Claiming expenses and other deductions
- Understanding tax entities such as LLCs
- Getting an employer ID number
- Preparing and paying taxes