Tax Tips for DJs
If you have ever received a 1099 Tax Receipt due to making more than $600 from a single customer, don't fret. Because you have received a 1099 receipt, you now officially have proof of income from your DJ Business. How do you get a 1099? If you charge more than $600 to a single customer for performing at an event, and they write it off for business purposes, you will receive one. You can also get one from any night club that pays you as an outside contractor or where you are NOT an official employee on their payroll. If you have never received a 1099 form, then you may experience difficulties proving that your DJ business is receiving income and it will be more difficult to write off expenses.
You should save all receipts and write off all expenditures, if they are related to your DJ business. If you do so, you must then claim all earnings, but if you are like most DJs and spend most of your income on DJ equipment, music, needles, and whatnot, you can write this stuff off.
If you are spending a lot of money, get a tax accountant, it will pay for itself and will protect you if the IRS comes knocking on your door. If the IRS wants to question your statement or perform an audit, you will have a tax professional to back you up since they were the ones who performed the return statement. You can also do your taxes online. Tax laws are designed to be indecipherable to normal humans, tax accountants have experience and tax software that helps you get every penny back. Professional tax accountants should only cost around $100 - $200 and will save you hundreds and hundreds of dollars by getting alot more back than your $200 processing fee.
So in summary, here are the things to keep in mind: - If you are buying lots of vinyl and CD's, keep the receipts and write them off.
- If you buy any equipment, keep the receipts and write them off.
- If you are driving to gigs all the time, write down the starting & ending mileage from your odometer, gas and food expenses as well.
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