Join Richard Stim for an in-depth discussion in this video Help with taxes, part of Taxes and Accounting for Music.
- Fortunately, there is an industry…of apps, software, and professionals…ready to assist you with accounting and tax preparation.…Particularly helpful are expense-tracker apps,…like Expensify, in which you photo or scan a receipt,…and the app automatically creates an expense record.…These apps may also track mileage,…sync with your credit cards,…and allow you to create and email expense reports.…Other apps offering similar features…are Concur, and iXpenseIt.…
MileIQ focuses on tracking and logging…your business use of your car.…Software for your laptop or iPad…can take the drudgery out of…accounting and tax preparation.…It's easy to use programs such as Quicken,…or an online program such as Mint, or AccountAbout.…All of these programs allow for…detailed categorization of income and expenses.…For more sophisticated accounting needs,…use QuickBooks, or Sage.…As for tax preparation software,…the three leading contenders are…TaxAct, H & R Block, and TurboTax.…
Unless you can afford the services of a tax-preparer,…I recommend the use of tax preparation software.…
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