I’m the lead singer in a band & I handle the business side of the band as well. IE: collecting payment & paying the band members.The money we make is split even between us, I do not wish to pay the whole bands tax, just the amount I personally took home, how I record what I pay each band member so they have to pay there own taxes?
Thank you for your help!!!
2007-03-21 18:24:13 · 3 answers · asked by scott w 1 in Business & Finance ➔ Taxes ➔ United States
You only report on your tax return your share of the band's income.
Make it clear that your band members are not your employees and you are not withholding taxes for them and you are not responsible for their tax returns.
To protect yourself from having to pay more, you should have given each member a 1099. Do that next year, you may be fined if you try to file 1099s this year.
2007-03-21 22:01:39 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Treat each member as a subcontractor. Send each one a 1099 each year.
2007-03-22 01:45:47 · answer #2 · answered by Anonymous · 0⤊ 1⤋
if you're splitting the income evenly i would just tax the gross income and thus taking care of everyones tax liability...if everyone gets a different amount then i would take their gross income itemize thier deductions then draft them a check instead of cash or something else...make sure to keep a carbon copy of every check just incase the irs becomes suspicious...hope this helps
2007-03-22 01:29:06 · answer #3 · answered by Eclipse GT 2 · 0⤊ 2⤋