Backstage With the Band

[cephus]

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?

[saintdel]

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.

[cephus]

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. :thu:

[BlueStrat]

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.

[tlbonehead]

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. :thu:

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.

[srsfallriver]

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.

[MDLMUSIC]

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.

[tlbonehead]

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?

[cephus]

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?

[Steadfastly]

You need to declare it if it's $0.25.

[jwlussow]

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.

[BlueStrat]

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.

[BlueStrat]

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. :cop: :facepalm:

[MartinC]

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.

[MartinC]

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



:facepalm:

:lol::lol::lol: too funny, and sadly true.

[cephus]

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 is indeed a dick. And as far as I know he hasn't played a gig with anyone since November when he played this gig with me.

He's actually very political and very anti-tax (you can guess his affiliation) and it wouldn't occur to him the impact of his refusal to pay his share. He just wants to get his, right?

Hey, I'm a good sport and am willing to pay my fair share. I am more concerned about being asked to produce records from the past in an audit.

[BlueStrat]

He's actually very political and very anti-tax (you can guess his affiliation)

Democrat?oke: :lol:

Hey, I'm a good sport and am willing to pay my fair share. I am more concerned about being asked to produce records from the past in an audit.

As long as you have the carbon of the 1099 you gave him you'll be cool.

[Zon5string]

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.

http://www.irs.gov/pub/irs-pdf/f1099msc.pdf

[srsfallriver]

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



:facepalm:

Or you are Charles Rangel! Love your avatar!

[MDLMUSIC]

http://www.irs.gov/pub/irs-pdf/f1099msc.pdf

Tried that. Here's what it says:

This form is provided for information purposes only. Copy A appears in red, similar to the official IRS form. Do not file copy A with the IRS. The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. A penalty of $50 per information return may be imposed for filing forms that cannot be scanned

So I guess I'm screwed.

And for the other posters who responded:

You're right, I should have written that I'd get a 1099 from the owner, not a W2.

As for discussing this with my accountant:

Do I need to give any more explanations as to why I can't afford to hire an accountant?