i have a tax question, if i made only 800 at one venue for the year do i still have to claim it? i heard if if you make less than a grand you do not have to. is it true?
tax question?
- Thread starter DJ T-BONE
- Start date
Call the IRS They will give you the correct answer. YOUR incomes entails ALL the monies you have made within the calendar year from ALL the different sources. All payments when combined will give you the total gross. Take away your deductions etc and you will end up with a net income. If you really want to grow your business and be able to get loans and lines of credit based on your DJ business, you had better be prepared to show consistent income from the same. It will also give credibility to what you do. Do the right thing!
Yiu should get a 1099-MISC from the venue.
The rule is any income from any one source $600.00 or over must be documented with a 1099 for independent contractors.
It is their responsibility to send them our postmarked by 1/31/2012.
If you don't get one from them, report it as they probably have you down as a paying vendor.
And call them to ask where it is.
The rule is any income from any one source $600.00 or over must be documented with a 1099 for independent contractors.
It is their responsibility to send them our postmarked by 1/31/2012.
If you don't get one from them, report it as they probably have you down as a paying vendor.
And call them to ask where it is.
Dunlop is correct! Anything 600 or more the payer is required to file a 1099misc to the irs and send you a copy. You are however required to report ANY income even if its less than $600. I'm with ahouston.... report your income and your expenses on a schedule C. It gives you credibility and its the right thing to keep you out of trouble. If the irs catches you they will tax you on it and not allow you to pull expenses out of your arse later.... do it right up front.
Get a Tax Accountant. If you are married and you or your spouse has another job you have an added plus. The DJ business can greatly offset the taxes on the other income. Get A Tax Accountant. It is worth it!!!!!
I don't care who you are, but that thar was funny...
Yes, because they think everything is theIRS yorofl:
T-bone...you need to separate your "business" expenses and income from your "personal" income and expense. The two are separate and distinct entities. If you use your vehicle for both "business" and personal use (back and forth to work at your day job and for fun) you can deduct for each business mile driven $0.55 mile. You need to keep records; beggining of year Mileage and end of year Mileage. Of course all the things you purchased for doing the busines; music, equipment, non-music supplies, postage, internet, telephone...if you have a dedicated business line, and Cell phone costs if it is used only for business. For all these things to have an impact you will have to file both your IRS Form 1040 (whatever applies to your status) and Schedule C (Business Expense). Best thing to do is get an accountant to set you up right. You can take his Fee and that of Attorney also if you hire one for Contract preparation. Also, you can deduct professional fees (ADJA or NAME, etc.) and of course the cost of Liability Insurance. To try and do this on your own is very stressful and you will be prone to making mistakes and the IRS will let you know about that for sure. Owning your own business using your social security number as the Tax ID (sole proprietorship) also known as d.b.a. (doing business as) is the most basic form of business. Be sure to get yourself a separate checking account and use it only for DJ business. You can even open it in the name of your business; i.e. if using your SSN as Tax ID as a "doing business as" T-Bone DJ Service...or whatever you business name is called. Best advice...get an accountant. :O)
Hope this helps. I'm sure others will add their $.02 (cents).
Hope this helps. I'm sure others will add their $.02 (cents).
A good Accountant can do more than Taxes for you. They can help you in the growth of your business by giving you advise on pricing to give you a proportionate profit for each gig. Depreciation of your Gear etc.
Depends Art...
If you form an S-Corp, they become one and the same -- that is the huge benefit of an S-Corp
But I will agree with all to get a good accountant.
Rick is correct. But, if you go the sole proprietorship route, then you should not intermingle your business and personal accounts.
For T-bone...On another note, by keeping track of ALL expenses and incomes for the business even if you have a loss (revenue less expenses) it may help reduce your personal tax liability, too. At some point, usually in 3 years from start of business you will need to show a Profit otherwise the IRS may rule that your business is a "hobby".
For T-bone...On another note, by keeping track of ALL expenses and incomes for the business even if you have a loss (revenue less expenses) it may help reduce your personal tax liability, too. At some point, usually in 3 years from start of business you will need to show a Profit otherwise the IRS may rule that your business is a "hobby".
As the others have said, hire an account, I have a professional handle everything. But yes, keep records/reciepts for everything.
From what I have heard, if it is $600 or more, they can send you a 1099.
Report it all, or you may have a visit from the IRS one day.
From what I have heard, if it is $600 or more, they can send you a 1099.
Report it all, or you may have a visit from the IRS one day.
Yes, you had better report the 1099-Misc you receive or combinations thereof that total above $601 or more. It's income and you need to report it. The thing about 1099-Misc is that the Vendor is transmitting it to the IRS (required by law) along with others. He, the one who sent you the 1099-Misc, is claiming you as an EXPENSE. And if you don't think the IRS will look to see if YOU have claimed at least that amount of income, you may be sadly mistaken. I have no idea of the likelihood that the IRS will be auditing that particular Client, but one never knows for sure.
Play it safe, don't be sorry.
Play it safe, don't be sorry.
thank you everyone who replied.. i do have a tax Accountant just didnt know if 800 was claimable , just waiting on my other 1099s to come in and start getting all my paper work together....