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Topic: Busking and taxes
Message: Posted by: kid iowa (Feb 27, 2004 12:31PM)
Ok, don't bash me on this, just trying to figure this out. How much do you need to make busking per year to declare it on taxes, and also, is there a set minimum of your income that you have to make through magic/busking before you can write off books/vids/props/etc on taxes? If,by some stroke of blind luck, I manage do make some decent money this year, I want to make sure that everything is legal and under control come tax time next year. Thanks, The Other Jim
Message: Posted by: Bill Hegbli (Feb 29, 2004 10:18AM)
Contact an accountant. Basically, you must file taxes and pay on total income over $400 for the year, if I remember correctly. If you have a 'day job' you can claim your magic as a 'hobby' income and take certain deductions. This is even if you make $10 for the year from earning as a hobby. Again check with an accountant or tax person or read the tax laws.

If your full time income is from performances or self-employed, then you must pay estimated taxes quarterly during the year. That means you 'guess' what your income will be and send the money to the government for a 3 month period. Then at the end of the year you balance. If you do not pay enough during the year there are penilties so you must guess closely.

Keep track of all expenses and keep all receipts with notes on the purchases, including travel out of town food and milage costs.

Again get expert advice from an accountant.