Taxes for Performers

If you are a performer, taxes may be the last thing on your mind. You, like most performers, are a free spirit and you may not care for all the rules and tedium of tax forms. However, you may be opening yourself up for a world of trouble if you neglect your taxes. All you need to know to do your taxes is a little bit applicable tax code and a few hints and tips to help you keep more of your money.

If you are a performer then you are most likely considered self employed. This means you are not an employee of any company and when you are paid, you are responsible for deducting all your own taxes. You will have to file a Schedule C with your tax return at the end of the year which indicated all money you received in the previous year. You will also have to pay self employment tax by using Schedule SE in addition to federal, state and local taxes. You are also expected to pay quarterly taxes by using 1040-ES

However, you can find ways to reduce the amount of taxes you have to pay. You can claim expenses on your tax returns that can reduce the amount of tax you owe. These expenses must have been incurred in the operation of your business and they must be necessary to the operation of your business. Examples of such expenses include travel expenses, home office expenses, legal expenses, and professional and agent fees. This is not a conclusive list and you should definitely consult a tax professional for further information.