Home Studio Tax Stuff

[Sloan]

Okay, here's the deal...

I tracked this band and one of the guys wants a receipt to write off as an expense on his taxes. I haven't filed taxes since like 2008 and I'm definitely not registered as a small business etc...

Any tips on how to go about this without anyone getting assblasted by the IRS?

 

[mva801]

Why don't you file taxes?

 

[Joelegend]

Have a reciept with your expenses ready.
(i don't know shit about running a business)

 

[Star Ark]

if he doesnt have a big mouth and you trust him give him some cash back

 

[MotherEel]

Okay, here's the deal...

I tracked this band and one of the guys wants a receipt to write off as an expense on his taxes. I haven't filed taxes since like 2008 and I'm definitely not registered as a small business etc...

Any tips on how to go about this without anyone getting assblasted by the IRS?

You'd have to create some kind of fake business name...

Look up previous examples of receipts for such things and just change it to something that cant be traced back to you, but looks legit enough that he gets his tax perk.

 

[Arsenu,]

I'd say you should register as a small business, make your clients sign an official contract, declare your income and pay your taxes. That's what i (almost always ) do.
Your clients will trust you more when they see that you're doing everything by the book.

But than again i live in Germany and you live in the States, and if i'd live in the states i probably wouldn't pay taxes either.

 

[Sloan]

Why don't you file taxes?

I haven't had a 'legit' job until last april.

I'd say you should register as a small business

I do this as a hobby. Only recorded four bands last year, there is no benefit as far as I can see in this.


I would think coming up with some sort of fake business could potentially cause more problems.

 

[mva801]

I haven't had a 'legit' job until last april.



I do this as a hobby. Only recorded four bands last year, there is no benefit as far as I can see in this.


I would think coming up with some sort of fake business could potentially cause more problems.

You should still file dude! Even if you only claim a tiny bit, odds are you can still get earned income credits and can write off plenty enough to not have to pay any taxes. I almost guarantee you could have gotten extra money from the government if you made very little...

And for this specifically, just hand the guy an invoice. He won't need to show that to the IRS unless they audit him, and you don't have to have a whole business set up just to charge a dude for recording.

I've never had a business set up, I just get 1099'd by some bands and claim what I receive in checks. If peeps pay me in cash, obviously that's easier to work with.

You could call an accountant. Probably should. If the IRS decides you should have been paying them taxes the last few years, they'll fuck you over big time. You don't wanna owe them.

 

[egan.]

I'm afraid you're getting advice from guys that don't file US taxes. You can just use the "other income" line on the 1040. If you want to deduct expenses you have to do a schedule A but it's still not a big deal. Most of the tax software walks you through all of this stuff, but it's basically no big deal unless you are making significant money from it.
Even when you are you don't have to form a biz (as far as the federal gov. is concerned. State and local gov. may have different rules). but you will be subject to self employment tax and definitely need to start itemizing deductions.

Edit: Also, everything MVA said.

 

[nosgulstic]

http://www.efile.com/tax/do-i-need-to-file-a-tax-return/

 

[Sloan]

Ok figured it out. Wasn't as big a deal as I had imagined. Efiled and owed $37.

 

[RevoltStudios]

Since I've been self employed for the past 2 years, I've learned to count every cent I spend for the business, aka, extra income. I always keep another small job that is tax paying so I can keep the extra income deal instead of a business tax. I buy gear to offset the cost, I pay for studio rental so I can write it off(instead of the band paying), count gas to studio, food while there, and the office I hold at home. While making quite a bit at it this past year, with write offs, I got 21 dollars back! Compared to the 3 grand I would have had to pay without deductions, it's a blessing.

 

[egan.]

Yeah, you can write everything off as a 1099'er which is awesome. This is off topic, but that's what's so retarded when politicians talk about tax rate increases preventing small biz's from reinvesting or hiring people. Business don't pay tax on the money spent on any of those things.
Egan the citizen pays tax on money spent on car repair, gas, internet, computers and rent but egan the business deducts all of those things from it's taxable income.

 

[RedDog]

Teach me your ways.

 

[fatalforce]

Anyone have any luck with filing under schedule C ?

http://www.irs.gov/uac/Schedule-C-(Form-1040),-Profit-or-Loss-From-Business

 

[egan.]

My accountant does it. The problem isn't the schedule C but the 6 other worksheets you have to do to maximize your deductions. At the least I'd recommend going to an accountant once to learn how it all works.