How do musicians make tax deductions?

Question

I am a working musician with a day job. May music-related expenses be deducted from my entire income tax due or just that pertaining to money generated by music? How much may I deduct?

Answer 1

1. If you have income from job, you can't deduct expenses from income. However, if you itemize your deductions, then you can deduct your business related (job related) expenses subject to 2% AGI limit (that is expenses exceeding 2% of your Adjusted Gross Income).

2. If you do not have a job, and you have income as a musician then this is your self-employed income. You report your income and expenses on schedule C and attach it to your form 1040. That means you can deduct your business related expenses.

3. Your self-employed income (income minus expenses) is also subject to 15.3% self-employment taxes.

Answer 2

You can deduct the expenses that are necessary and customary to earn the money from your music. And it's possible to have more expenses in any given year that you have income from the music, in which case you would show a loss for your business (the music) and could deduct that loss against the income from your day job as long as you can show the music is a business you are trying to make money from, not just a hobby that generates some income. If it's considered a hobby, your deductions for expenses are limited to the income from your music. It's possible that some items you might buy would have to be depreciated over serveral years rather than being deducted in the year you buy them.

See http://www.irs.gov/newsroom/article/0,,id=172833,00.html for more info on business vs. hobby.

Answer 3

as replied on your previous post, mileage to and from 'paintings' is commuting and not deductible if he has gigs that contain being faraway from homestead a minimum of overnite, the nutrition and accommodations and incidentals are deductible and specific, whilst he gained 1099's from the payer, he ought to have issued 1099's to the individuals of the band that he paid(this could a great deal shrink his certainly criminal duty) of direction, considering the fact that he hasn't finished this the individuals of the band now have a difficulty except they knew what they have been paid and claimed it wisely interior the years they gained it on their Sch C's and specific,submitting 1099's late will incur some effects

Answer 4

All related expenses are deductible. Instruments, parts, transpo. to gigs including gas and repairs, clothes, etc... You can deduct it all if you have receipts.