Making money in the music business? Find out how to claim income from gigs, maximize your deductions, and file the right tax forms with the IRS.
- [Voiceover] Welcome to Music Taxes and Accounting. If you are earning a living from music, or you'd like to, this course will help. It provides basic tax information that can lower your tax bill and improve your bottom line. In this course you will learn how to track income and expenses, how to qualify for deductions, depreciate equipment, claim home studio expenses, determine the likelihood of being audited, and much more.
Throughout this course, I cite numbers, rates, and tax formulas. Be aware that some of these may change over time, and you may need to check the IRS website for the most up-to-date information. I'll start with some common tax questions.
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