TAX HELP!

[ronrocket]

Hiring a CPA is expensive. I did that once, but did not feel that I got value for the money. I have been using tax software (locally, not on line) for years with no problem even though my taxes can sometimes be complicated. If you have any investment accounts (Scottrade, etc.) TurboTax will download the info for you to calculate gains and/or losses and put stuff into the correct place. I do a range of stuff and I list "consulting" on Schedule C. Yes, "Entertainer" works just fine as a profession. I know people who work lots of music gigs, or have students for private lessons. That is what they do. For the current purposes, "Entertainer" would work with business code 711510 (Independent artists, writers, and performers).

[james]

How can I be of service?

[RoxyParker]

If you file self employment, say as an entertainer, do you need to have a business license or tax id #? Would this be considered a "sole proprietor"? Thanks for the advise already posted and any to follow.

[textexyeehaw]

RoxyParker, if you do self-employed, you can get a separate tax ID but it is likely not going to be necessary. And, technically, you are a sole proprietor unless you do an LLC (which would need it's own separate tax ID).

I've heard people have even put 'weed dealer' and file as well as escort. Then, you deduct ordinary and necessary expenses but nothing illegal.

The self employment tax would be the tricky bit. Make sure you get mileage in your deductions.

[RoxyParker]

Thank you. So, it seems that a business license is not necessary if claiming self employment. Is this correct? Thanks again!

[FlyBoy1701]

There's no tax requirement to have a business license... different types of businesses are regulated differently, and require different licensing (most businesses require no licensing whatsoever), but the IRS isn't concerned with your licensure, only that you report your income.

As a professional entertainer, your income should generally be subject to self-employment tax, and should be reported on Schedule C (an attachment to Form 1040).

I would not recommend that anyone take a flippant attitude and report their job as "weed dealer" or "hooker" especially since you sign the tax return under penalties of perjury... do you really want to tell the government that you're a "weed dealer" and then swear that it is an accurate statement? Something like "entertainer," "performer" or "artist" is benign, and accurate.

PM me for further advice if you would like it... I'm usually not much for posting in the forums.

[RoxyParker]

Thank you. You all have been very helpful and I greatly appreciate your taking the time to answer my questions. I hope you all have a great week!

[The Eternal Bachelor]

Originally Posted by FlyBoy1701

There's no tax requirement to have a business license... different types of businesses are regulated differently, and require different licensing (most businesses require no licensing whatsoever), but the IRS isn't concerned with your licensure, only that you report your income.

I think Texas Comptroller rule 3.317, Massage Parlors, Escort Services, and Turkish Baths applies to self-employed escorts
http://texreg.sos.state.tx.us/public...=1&ch=3&rl=317

Many cities also require you to register with them and pay them taxes if you are doing business within their jurisdiction.

[Don Sanchez]

A couple of other options to consider: the IRS, in cooperation with community organizations, offers free tax preparation through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Do a Google search for [your town] VITA sites.

I speculate that the original poster is concerned about self-employment matters. Many VITA sites have some expertise with self-employment returns, but it might be a good idea to check before taking the time to drive to a VITA site.

The IRS is also working with several well-known tax preparation software companies to provide web sites where many taxpayers can file their returns for free. Go to www.irs.gov and click on the Free File button on the right side. Study the criteria for each site closely before you start to ascertain whether you qualify to file for free through that site.

I hope this information will allow future readers of this thread to save a little money which they can then spend on hobbying.

[The Eternal Bachelor]

Originally Posted by Don Sanchez

A couple of other options to consider: the IRS, in cooperation with community organizations, offers free tax preparation through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Do a Google search for [your town] VITA sites.

I speculate that the original poster is concerned about self-employment matters. Many VITA sites have some expertise with self-employment returns, but it might be a good idea to check before taking the time to drive to a VITA site.

The IRS is also working with several well-known tax preparation software companies to provide web sites where many taxpayers can file their returns for free. Go to www.irs.gov and click on the Free File button on the right side. Study the criteria for each site closely before you start to ascertain whether you qualify to file for free through that site.

I hope this information will allow future readers of this thread to save a little money which they can then spend on hobbying.

Don't use the VITA service, most of their preparers don't know what they are doing unless it is a Form W-2 only tax return.

Many of the free filing websites are just that, free for filing only. If you want a printout of your tax return, you will have to pay a fee, the lowest I've seen is $25.

[jhobbyist]

Hmmm...I'm fairly versed in dealing with accountants due to my multiple businesses. Ensure you find a good accountant that is well versed in tax law and regulations. Also, ensure he knows what assets to depreciate.

[Fancylady]

Originally Posted by RoxyParker

Thank you. So, it seems that a business license is not necessary if claiming self employment. Is this correct? Thanks again!

Self employment.

[newalhobbyist]

Self-employed people generally use Schedule C as part of Form 1040 to report self-employment income. Also Schedule SE is involved, to calculate and pay the Social Security and Medicare (FICA) taxes on that income. My understanding is that there is no federal tax/IRS requirement for a business license. Business licenses are generally not a tax issue. The requirement to have a business license is generally determined at the local/municipality level. I find that often such requirements are vague and not very clear as to when they are required.

[johnsito]

Hello, i am a tax preparer. Have you already done your taxes? I can help if you are still looking. Let me know.

[CarmenFoxx]

Roxy...

I did not need a business license or tax ID# when I filed as self employed-entertainer.

I did hire a CPA and just gave her the numbers and she worked her magic.

Originally Posted by RoxyParker

If you file self employment, say as an entertainer, do you need to have a business license or tax id #? Would this be considered a "sole proprietor"? Thanks for the advise already posted and any to follow.