Join Richard Stim for an in-depth discussion in this video Navigating the tax return, part of Taxes and Accounting for Music.
- Here's a brief explanation of the tax…forms you may need to complete.…This material may get a little dry,…but try to hang in there.…We're almost done.…Form 1040, U.S. Individual Income Tax Return.…If you have any self-employed music income,…or if you are an employed musician claiming…itemized deductions for employee expenses,…you would use Form 1040,…known as the long form.…You will attach one or more of the following forms…to your Form 1040 when filing.…
Schedule A, Itemized Deductions.…Schedule A is used to figure certain…personal itemized deductions.…Among other things, it is used…by an employee to deduct unreimbursed…job-related expenses.…Schedule C, Profit or Loss From Business,…Sole Proprietorship.…Self-employed musicians acting as a sole proprietorship…must file a Schedule C or you can use…Schedule C-EZ if your music expenses…are not greater than five thousand dollars,…you have a net profit, you have no employees,…you have no inventory and you are not using…depreciation or deducting for a home office.…
Schedule E, Supplemental Income and Loss.…
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