Music Jobs Last Minute Tax Tips for Musicians
Friday, April 8th, 2011This post is intended to offer general ideas to independent musicians, rather than legal advice. Please consult a tax specialist with your specific legal questions.
April 15th is fast approaching, which for singers, bands, performers, and musicians across the country, is a fearful date: something about all that legal jargon and red tape just doesn’t energize a creative mind in the same way. Following Lil Wayne’s recent income tax bill for a whopping $5.6 million, we thought we should share a few last minute helpful tips, ideas, and reminders on deductibles, seeing as the independent artist can often take deductions that are normally not available to most people. Oh, and there’s additional good news this year: April 15th coincides with a District of Columbia holiday, and so all 2010 tax payments are instead due on Monday, April 18.
Common tax deductibles for musicians and performers in the music industry
- Instrument purchases, rental, repair and maintenance.
- Subscriptions and purchases of Billboard / Rolling Stone Magazine and other trade publications.
- Being a service that you use to find employment, your subscription to Music Jobs is tax deductible.
- Stage clothes/makeup (but you can’t use the clothes for everyday use.)
- Remember how We Are the World 25 for Haiti and MTV’s Hope for Haiti encouraged you to donate to charity? Deduct your contributions.
- Rehearsal hall, studio, office or storage rental.
- Music Lessons.
- Memberships in professional associations and the unions.
- Website and email database setup and maintenance costs.
- Production of physical promotional materials; CDs, photos, newsletters, USB giveaways.
- Lucky/smart enough to have some professional earplugs made up? Deduct away!
- Whilst away from home, you can deduct 100% of travel and accommodation…
- And 50% of business meal expenses – while on tour, all of your meals are business meals.
- Report payments to other musicians. Legal fees are also deductible. (Note: You must send a 1099 to any independent contractor, such as the extra guitarist you hire for the tour, to whom you pay $600 or more.)
Finally, a little soundtrack to give you the motivational kick you may need
Happy filing!
The Music Jobs Team.
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