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Do you have to report band income less than $2500?

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  • Do you have to report band income less than $2500?

    I had one corporate gig this year that forced me to use the EIN from my old IT consulting biz. So, I have one 1099 or w-9 or whatever it is. if I roll that in to my personal income, I'll probably owe $1000 on it. I haven't filed for the music business since my 20s. If your side business doesn't clear at least x dollars, I thought you didn't have to report.

    Maybe that is crazy talk. I have been googling and searching the forums and I don't see mention of it. Some of the guys at work make more than that ebaying crap and they say you don't have to report it. But they don't have the damned w-9.

    If I do the long form, I know I have at least that much in expenses in 2008. But, I do recall that my brain locked up the last time I did it and I paid an accountant. Maybe I should just go back to him.

    do I have to report $2500?
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  • #2
    Yes, you do. I'm a CPA for the last thirty years and have never seen or heard anything saying there's a $2500 floor. What may be being misinterpreted are the minimum income levels under which you don't have to file a return at all. But if you have total income above those amounts (easily found with google) or self emplyment income over $400 you have to file and report all your income, regarless of source. Just report the 2500 on schedule C and take your expenses on the same form.
    Member: SG Army
    In rock n roll alliance with the Mazi Bee Militia
    But Old Reliable is a Strat.

    Like the Kingdom of Heaven the Fountain
    Of Youth is within us;
    If we seek it elsewhere, old shall we
    grow in the search.

    Now, get off my cloud.

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    • #3
      These guys here were trying to tell me that you don't have to report income under 5 grand. Thanks for the reply. I'm sure that the tax guy will appreciate the extra money, too. Gotta help out the economy.
      This space intentionally left blank

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      • #4
        You are able to write off income paid to other guys without issuing 1099s to them if it's under 600 dollars a man. You would only be on the hook tax-wise for your share of the split. As always, though, you should check with an accountant first, as tax law changes more often than my ex wife's hair color.
        http://www.patcoast.com"The guy would be strumming along, singing the verse to “Margarittavile” and then he would hit his harmonizer pedal for the chorus. It went from sounding like a guy singing and playing guitar to sounding like the Stephen Hawkings trio."-Christhee68" the singer of my cover band used to find it funny to let out gaseous forms of vile hate and sadness that would make a plaster baby Jesus weep."- FitchFY

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        • #5
          These guys here were trying to tell me that you don't have to report income under 5 grand. Thanks for the reply. I'm sure that the tax guy will appreciate the extra money, too. Gotta help out the economy.
          Someone is pulling your leg. Any time you make $600 or more on your SSN for one place/year you should get a 1099. And legally, I think you are supposed to claim ANY money you make in income.
          tlbonehead@yahoo.com
          www.myspace.com/tbone_tommy
          -For Sale:
          -set of GFS Dream 90s- gold and black pearl- $40 shipped in the cont. US
          -(2) Celestion G12M-70 16 ohm guitar speakers in good condition $40 ea. + shipping.
          - Vox VT15 Valvetronix very clean - $85 + shipping
          - Hughes Kettner Edition Tube 20 (the early Voxy sounding one) Sounds & looks good. $250 + shipping. SOLD
          - Crate Palomino V8 - 10" Celestion - Very clean - on Ebay (sold)

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          • #6
            Play it safe. Any money you make that has a paper trail, claim it. The IRS has the ability to have you guilty until you prove your innocense. Don't mess with them.

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            • #7
              Okay, a related question.

              I am the leader of a rock and roll trio that has done a year long house band gig in a local club for the past several years. As the leader I'm the one who gets the W2 from the owner. Every year I've gone to Staples and bought a pack of 24 1099 forms, used 2 and thrown the rest away.

              I'm tired of blowing almost $30 on this. Does anybody know of a cheaper way to get just a few 1099 forms?

              Thanks for your help.
              Michael D. www.mdlmusic.webs.com "I'm tired of rock-and-rolling Let's get married, Honey, let's go bowling" --Martin Mull

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              • #8
                Okay, a related question.

                I am the leader of a rock and roll trio that has done a year long house band gig in a local club for the past several years. As the leader I'm the one who gets the W2 from the owner. Every year I've gone to Staples and bought a pack of 24 1099 forms, used 2 and thrown the rest away.

                I'm tired of blowing almost $30 on this. Does anybody know of a cheaper way to get just a few 1099 forms?

                Thanks for your help.
                Doesn't your accountant have any?
                tlbonehead@yahoo.com
                www.myspace.com/tbone_tommy
                -For Sale:
                -set of GFS Dream 90s- gold and black pearl- $40 shipped in the cont. US
                -(2) Celestion G12M-70 16 ohm guitar speakers in good condition $40 ea. + shipping.
                - Vox VT15 Valvetronix very clean - $85 + shipping
                - Hughes Kettner Edition Tube 20 (the early Voxy sounding one) Sounds & looks good. $250 + shipping. SOLD
                - Crate Palomino V8 - 10" Celestion - Very clean - on Ebay (sold)

                Comment


                • #9
                  You are able to write off income paid to other guys without issuing 1099s to them if it's under 600 dollars a man.


                  Do I need to document their SSNs to do that? I know damned well that no-good drummer won't give it to me.

                  We were in another band that played Moose lodges and american legions. When we played them, they'd ask for an SSN and the guys in the band would take turns claiming the income. He told me later that he just made one up when it was his turn.

                  What if he makes one up and gives it to me?
                  This space intentionally left blank

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                  • #10
                    You need to declare it if it's $0.25.
                    Foul language is the sign of a weak mind trying to express itself forcibly. * Thankfully, my computer program masks all the foul language and changes it to @&%)7#

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                    • #11
                      You need to declare it if it's $0.25.


                      TRUE!!! I've been audited and it's not fun. Advantage of being a musician (among other professions) is keep track of things like money spent on stage wear, mileage, sticks, strings, drum heads, guitars, amps, cords, etc.... They are all deductible. Most of us here can probably offset our income with deductions. If you make a dime, you have to declare it on your taxes.
                      "The music business is a cruel and shallow money trench, a long plastic hallway where thieves and pimps run free, and good men die like dogs. There's also a negative side." - Hunter S. Thompson

                      Band promo shots on railroad tracks were cool in 1981...

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                      • #12
                        Do I need to document their SSNs to do that? I know damned well that no-good drummer won't give it to me.

                        We were in another band that played Moose lodges and american legions. When we played them, they'd ask for an SSN and the guys in the band would take turns claiming the income. He told me later that he just made one up when it was his turn.

                        What if he makes one up and gives it to me?


                        I didn't have to. I wrote it off to 'casual labor'. The provision exists so that if you do hire someone on one-off and then they take off down the road never to be seen again you can still write it off.

                        But if you pay them over 600 bucks you have to give them a 1099. And if I had a drummer that would stick mew with his taxes I'd take it out of his gig money or I'd fire his ass. If he doesn't want to pay his taxes that's on him. But if he expects you to pay them, he's just a dick.

                        He can make up whatever he wants. Once you issue the 1099 any information he puts on it is up to him. Just make sure you have his name and address on it.
                        http://www.patcoast.com"The guy would be strumming along, singing the verse to “Margarittavile” and then he would hit his harmonizer pedal for the chorus. It went from sounding like a guy singing and playing guitar to sounding like the Stephen Hawkings trio."-Christhee68" the singer of my cover band used to find it funny to let out gaseous forms of vile hate and sadness that would make a plaster baby Jesus weep."- FitchFY

                        Comment


                        • #13
                          Play it safe. Any money you make that has a paper trail, claim it. The IRS has the ability to have you guilty until you prove your innocense. Don't mess with them.


                          Unless you're applying for a job in the new administration.



                          http://www.patcoast.com"The guy would be strumming along, singing the verse to “Margarittavile” and then he would hit his harmonizer pedal for the chorus. It went from sounding like a guy singing and playing guitar to sounding like the Stephen Hawkings trio."-Christhee68" the singer of my cover band used to find it funny to let out gaseous forms of vile hate and sadness that would make a plaster baby Jesus weep."- FitchFY

                          Comment


                          • #14
                            You can get them from the feds for free. I went to the local federal building and picked up the 1099's and the 1096. If you don't have a fed building near you, ask them to mail you some. You sure your getting a W2-you should be getting a 1099. A W2 is what you give employees-if he's giving you that, he should be with holding fed and state taxes, plus paying half your FICA. In that case every band member would get his own. I've never had a gig where they were that generous.

                            For the poster who said his drummer wouldn't give up his ss number, get the SS number and address before you pay sidemen. Get them to sign a receipt for cash, or better yet, write a check. 1099 them by 1/31 of the next year. It won't matter if he gives you a fake number if you have his name and address-the IRS will nab him. I've been audited too-those 1099's came in handy then.






                            Okay, a related question.

                            I am the leader of a rock and roll trio that has done a year long house band gig in a local club for the past several years. As the leader I'm the one who gets the W2 from the owner. Every year I've gone to Staples and bought a pack of 24 1099 forms, used 2 and thrown the rest away.

                            I'm tired of blowing almost $30 on this. Does anybody know of a cheaper way to get just a few 1099 forms?

                            Thanks for your help.

                            Comment


                            • #15
                              Unless you're applying for a job in the new administration.







                              too funny, and sadly true.

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