How do artists figure their taxes?

Question

How do artists figure their taxes? How do they classify their income and what forms do they file? I've tried to figure it out and it seems quite complex. We are both artists and are not a corporation or business exactly because our art income isn't that substantial.. mabe $4,000 a year in sales. However there are expenses.. and of course you can deduct a certain percentage of your rent ..I believe. Actually probably what would work best is a low cost tax service for seniors. Any thoughts or ideas. I've priced tax people and they want to start with $250.00..

Answer 1

There is a service called Tax Aide that is a free tax prep service concentrating on seniors. See https://locator.aarp.org/vmis/sites/tax_aide_locator.jsp for more info. The only problem is that since the deadline is so close, many sites are done for the year (many only operate one day of the week - preparers often cover multiple sites), and the ones still open are probably swamped Monday and Tuesday.

Find a Tax Aide site near you by using the above link, and call the number listed to see if they'll be open tomorrow or Tuesday.

You can only deduct a portion of your rent, utilities etc if part of your home is used regularly and EXCLUSIVELY for your business - if the room is used for anything else, then you can't deduct it. But supplies would definitely be deductible, along with pretty much any other expenses that are required in order for you to make that income.

You'd show your art income and expenses on a schedule C or C-EZ, then use schedule SE to calculate self-employment tax on your art income. The numbers from the bottom of the two schedules would transfer to a 1040 along with any other reportable income that you have.

Good luck. Next time start a little sooner and the Tax Aide sites can help you.

Answer 2

The person above me is right. I am a musician and I file a schedule C. I use Turbo Tax, it talks me through everything. It's complicated, but really it asks me the same questions the HR Block lady asked me... but it was much cheaper!

I deduct the costs of my business, supplies, music etc. as well as mileage to gigs. I qualified my business ans "Independent artist, musician" and Turbo tax gives me ideas about what types of things artists should deduct. I keep records of all my expenses and a log of my mileage.

Good luck! It's not easy when your life doesn't necessarily "fit in the box!"

Answer 3

you're an artist? in case your plate is finished take a seat with an authorized & registered tax preparer and get your pastime plan in place for taxes. in case you have numerous time beyond regulation then pass to IRS.GOV and get carry of or order unfastened PUB 17, Sch C & training, sort 1040 & training, SE & training; then study and learn. Take some accounting courses and taxation courses and combine all this archives at the same time and do your tax return. We look in an age of specialization in the right here and now; I worked for 3 college levels and have performed taxes for 40 years. i won't be able to paint a image or bake a cake yet i understand what to do with tax concerns; you may nicely be in the comparable boat as me now, only you are able to paint a image.

Answer 4

Artists generally register themselves as "sole proprietorships", or single-person business entities. They keep meticulous income & expense records, and then file their taxes the regular way but include a Schedule C, which attaches to your 1040 and adjusts your "Gross Adjusted Income" as necessary. The great benefit to this is that if you make a loss, that reduces the tax burden on any other income you have...

Answer 5

File a 1040 and schedule C which will allow you to deduct your expenses. I'd recommend you use turbotax software for this because it will keep track of these amounts te following year.

Answer 6

not sure why h/r block (for eg.) wouldnt want to do your taxes regardless of what you do. i would suggest that you definately have a professional do your taxes in order to stay out of the clutches of the irs. you can check out your local sr center or area on aging...for more info. you dont say how old you are or what. you dont say whether you are retired or what. anyway i am positive there is some tax agency that would be glad to do your taxes for a fee. good luck to you!

Answer 7

They hire a personal accountant.