Our friends at Pledge Music have written a great article with 5 very important tax tips for you, the musicians of this world. Does thinking about tax returns either bore you senseless or frighten you? You're not alone. However, this shouldn't mean that you miss out on what is legally yours. A few simple tips, as listed below, will ensure you can make the most our of your creative profession and ensure that instead of being worried or stressed at tax time, you're in good stead to make some serious coin and be organised for the year ahead. Check out the full article at Pledge Music here, however we have summarised it for you below.
1. Keep Your Receipts:
Important for freelancers, or contract workers of any kind, this is extremely important. Keep them ALL. A lot of them can be deductible. 2. Know What’s Tax Deductible for You
. There will be a lot of things that you didn't realise you can claim, that you can. Is buying new music something that helps your career as a musician? Absolutely. Did you have to buy new guitar strings? All of these things are deductible, so know about them. 3. Be Familiar with the Forms
: Yes, they can be scary if you're unfamiliar, but it's your responsibility to get on top of them. If you don't know something, ask your accountant or someone who will know and help. 4. Find Tools to Best Track Your Income
: There are a lot of tools out there which can help with this - one being mint.com. 5. Be Aware of the Self-Employment Tax.
Not sure what this is? Find out from the IRS here.