Tax time can be a really tough time for musicians and other self employed individuals. A few words of advice in regards to making this time less stressful.
1. Make sure to keep receipts for everything that you purchase over the year. File those receipts in a safe place and in an orderly manner. This is extremely important as you might not only need these for your records but if you are ever audited, they are required.
2. As a singer you will very likely be able to write off clothing, make-up, hair appointments, other personal hygiene and grooming services, shoes, accessories, equipment, gym memberships, vocal or dance lessons/classes. Keep receipts for everything that you purchase. As a musician, everything listed already and add in all of your gear, and maintenance to gear.
For all, include gas or mileage (keep track of both if it's your first year working), car maintenance, meals on the road, items such as iPads used on stage, music purchased online, periodicals, etc.
3. If you are a 1099'd individual make sure that you set up quarterly payments to the Fed and the state. You don't want to end up owing more than you have on hand and are unable to pay due to not paying your quarterly deposits.
4. Unless you are an accountant/CPA or are really good with numbers and understand the laws and rules of the IRS, hire someone qualified to do your taxes for you. This might cost you a bit but if you have someone good doing your taxes you will save money in the long run.
Gino Johnson you are the best! Peachin, Schwartz & Weingardt P.C.
Best of luck. #blondewisdom #six #numbersix
Lisa