Tax season is here again, and that means musicians must turn their attention from counting bars to counting earnings. Freelance musicians should be especially aware this time of year. An independent musician’s tax return can be somewhat complicated because most self-employed artists get paid with “gross” dollars with no taxes withheld. This requires them to be disciplined enough to save and prepare for April 15.
If you’re a US citizen, remember that your worldwide income from all sources is considered taxable income. Income you receive from club dates, wedding gigs, music lessons, session work, drum-loop programming, royalties, or any other music related or nonmusic related work, is also taxable income. (more…)