1099 for musicians

[Big John]

The leader of the blues band I played with last year (for approx 5 mos) just texted me, wanting my soc sec # and address for a 1099. I'm about an inch away from telling him to take a hike. I've gigged for over 20 years, and not once have I combined taxes and music; it's always been cash under the table. For those of you that deal with with this stuff...how do you deal with this stuff?

 

[Kamen_Kaiju]

the number you are dialing has been disconnected

 

[bildozr]

Look if you were a serious starving artist type, one that had a band set up under an LLC that negotiated gigs for... I dunno a freaking jazz band in fine dining establishment? Then maybe. Otherwise hell no.

Frankly it sounds sketchy, regardless of his intentions.

 

[StonedCrow]

All the money I earn through gigging has always been cash in hand, I've never and will never pay tax on it, however the money I earn from teaching I declare, well I declare the bare minimum, just enough to be under the tax threshold. My girlfriend pays more than enough tax for the both of us with her income, so I don't for a second feel guilty in the slightest for not paying any on mine, besides my girlfriend is a wizard when it comes to taxes and the self employed, it would shock you the sort of things my girlfriend has managed to have declared as tax deductable for me, it's one of the benefits of dating somebody who not only works in the finance industry, but is a genius when it comes to taxes.

 

[rxbandit]

All the money I earn through gigging has always been cash in hand, I've never and will never pay tax on it, however the money I earn from teaching I declare, well I declare the bare minimum, just enough to be under the tax threshold. My girlfriend pays more than enough tax for the both of us with her income, so I don't for a second feel guilty in the slightest for not paying any on mine, besides my girlfriend is a wizard when it comes to taxes and the self employed, it would shock you the sort of things my girlfriend has managed to have declared as tax deductable for me, it's one of the benefits of dating somebody who not only works in the finance industry, but is a genius when it comes to taxes.

Probablyyyyyyy not the greatest idea to admit to tax fraud on a public forum

 

[StonedCrow]

Probablyyyyyyy not the greatest idea to admit to tax fraud on a public forum

You're probably right there, thank the late J.C, that I'm in a jurisdiction that your cops and I.R.S. can't do squat about, sand lets be honest the H.M.R.C. employ illiterate morons, so I figure I'm save, besides, I can always blame the girlfriend if I get in trouble, she is the one with the brains in the relationship, I just do what I'm told.

 

[Nick-O]

I am sure all is well...but don't cross that woman. They can be mean on the payback. You have a lot of years ahead of you and things like that don't go away.

 

[madmusicltd]

I got stuck paying taxes for the whole band one year out of my pocket!, I didn't even try getting any money from the band (useless)... From then on I have been claiming my music income, and paying taxes for my music business. But, this also means I can also write off my new equipment purchases, and expenses, gas, and depreciation of older instruments. You do not need to show a profit every year, but cannot claim losses for too many years, or uncle Sam sees it as a hobby...

 

[LeftyF2003]

I've had to do a 1099 for several gigs that were sponsored by towns (big outdoor shows) or for private parties. Just means you're getting a better class of gigs. That said in my situation the check is cut directly to my singer so for this year he's eating the taxes. We're looking to pay him back out of this years earnings. In your situation I would assume the check was cut to him, so I don't know why he's asking you for one now unless he's planning for you to pay tax on your share of the earnings? I'd have a converstation with him and see what he's trying to accomplish. Depending on how much you earned it may not even be enough to owe anything

 

[Frankg11]

if you were paid by the band with a check.. I.E. Bob's LLC wrote you a check for the gig then he is going to report you as a 1099 employee that received $xxx.xx in compensation for those 5 months.

You will be liable for FICA, Medicare, Medicaid, Social Security and Taxes.

If you elect not to pay or report he is going to report you anyway or risk the firm.

 

[Laggspike]

i have never earned anything except: food, a pickup and a cola for my music that i have been playing/making for the last 11 years, so i cant help you, sorry

 

[Tone deaf]

If you get a W2 or 1099, make f*cking sure you declare all of it. The issuer of the W2 and/or 1099 sends one copy to you and another to the IRS. If they add up whats been reported to them and it is more than what you put on your top line, they will notice and will be in touch.

If you get a 1099 and don't have a business, put it on Schedule C (profit or loss from business). If you're self employed, include it on Form SE. Do it both ways and see what works out better for you. You can reduce your exposure by offsetting the income with all of the expenses you incurred (gas, wear and tear on your car and gear, home office, subscriptions, cell phone bills, etc).

If you and the IRS disagree about deductions, no biggie. If you underreport your top line and the IRS knows it, you're going to have a problem.

 

[Frankg11]

Yeah! What ToneDeaf said.

Ask him what he is going to report. Check the mileage deductions chart on the IRS as well. You may have to use your appt calendar to figure out how far you have traveled.

 

[michaelinokc]

I would imagine that a lot of gigging musicians don't make profit. Do your taxes properly and take the loss to offset other income. And in case you wanted to know, yes, I am a tax professional.

 

[redcoats1976]

you get paid?what a concept...

 

[Chicago John]

Big John, I'm sorry to say you should give him the info and declare it on your tax return. It's his call to keep it on the books, not yours. You should declare it as income because the IRS will have a copy of it.

 

[Joeydego]

if hes asking for that info, its already being reported. Want him to ask or the IRS?

 

[freebyrd 69]

Sounds like he didn't tell you upfront about this, which is bullsh!t. Shame on you though for not knowing how you get paid at a gig. Cash under the table is our norm. We have done a few gigs for city festivals and the like where we were paid by check, and whomever used their SS# to report got a fair percentage more of the cut. Always know how you are getting paid.

 

[LeftyF2003]

Sounds like he didn't tell you upfront about this, which is bullsh!t. Shame on you though for not knowing how you get paid at a gig. Cash under the table is our norm. We have done a few gigs for city festivals and the like where we were paid by check, and whomever used their SS# to report got a fair percentage more of the cut. Always know how you are getting paid.

This. As I said I believe it's based on who got the check, but to be safe declare it and write off what you can. Gas, strings, wear and tear.

 

[Joeydego]

Sounds like he didn't tell you upfront about this, which is bullsh!t. Shame on you though for not knowing how you get paid at a gig. Cash under the table is our norm. We have done a few gigs for city festivals and the like where we were paid by check, and whomever used their SS# to report got a fair percentage more of the cut. Always know how you are getting paid.

All income is required to be reported and is taxable. There is no such thing as under the table money that is non taxable.