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Zauberman Veteran user 314 Posts |
One thing I've always wondered about.....do you guys claim your hats, & pay tax on it.
I've made a measely couple hundred bucks on the street. But I guess technically I'm going to have to declare this. What do you pros do? I mean, I guess it like a business...do you write off you transprortation, tricks you buy, etc??? Or do you think it's reasonable to just not declare any of it? Work under the table so to speak. What do you guys do??????? |
tommeepickles Regular user New Orleans 165 Posts |
If you make under $12,000 on paper (like a waitress or bartender) you don't have to pay taxes or have health coverage. If you gig, you will probably have to pay taxes. If you do cigarette magic, write off the smokes, cards, transportation, tables, batteries, vest...
If you do write stuff off, you get pennies on the dollar, it's not worth it unless you have a bulk of deductions. Its better to be poor. I am not a tax representative or attorney |
Zauberman Veteran user 314 Posts |
Thanx Tom.
I work at another job which puts me well above the minimum. Not sure of the risk of not declaring busking earnings. I would think the full-timers make well over 12 grand & if one doesn't declare it, that makes it tax-free. It's not like we get a total earnings form from our employer. What goes in the hat, how would anyone know how much you make????? |
writeall Special user Midland, Michigan 930 Posts |
Quote:
On May 3, 2016, tommeepickles wrote: In the US, you still need health coverage under Obamacare. It's just that with a low enough income you can apply for a government policy, a la Medicaid. |
writeall Special user Midland, Michigan 930 Posts |
Quote:
On May 3, 2016, Zauberman wrote: "If one doesn't declare it, that makes it tax-free." - you could also say it makes it a crime. If you don't document and claim the income, you are giving the IRS permission to estimate it if you ever get audited. Pay the taxes you owe. Be a patriot. Don't mooch off the rest of us. |
MagiCol Special user Dargaville, New Zealand 929 Posts |
Before any taxation applies, wouldn't what lands in the hat have to have expenses, 'wages', trips to see magicians perform or at their pitches, costs of going to and being at magic lectures, magic conventions etc. taken out it?
'Magic' could be costing you more than you make by going busking and doing magic shows. When does a hobby 'income' become a taxable item?
The presentation makes the magic.
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writeall Special user Midland, Michigan 930 Posts |
There's very little in the way of income that you don't have to report. In fact, there's a spot for reporting miscellaneous income not reported elsewhere. The hobby/business distinction doesn't come in for gross income, it comes in for what deductions are allowed - hobbies don't qualify for all the goodies that businesses do.
But in either case, you report it all, deduct what you are allowed and go from there. |
Pete Biro 1933 - 2018 18558 Posts |
Use a real CPA to do your tax work. Obey the laws.
STAY TOONED... @ www.pete-biro.com
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Stephen Wilbury New user 68 Posts |
My son's Godmother is a tax investigator, she sometimes leaves her card in buskers hats just to give them the willies
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Zauberman Veteran user 314 Posts |
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On May 7, 2016, Stephen Wilbury wrote: Oh-Oh...is she a member here at the Café??? LOL . |
MagiCol Special user Dargaville, New Zealand 929 Posts |
But the people who put money in my hat have already paid tax on it
The presentation makes the magic.
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MagiCol Special user Dargaville, New Zealand 929 Posts |
Oh, I'd better explain.
Here in New Zealand most workers have tax deducted by their bosses before they get their weekly/fortnightly wages. It's a system called PAYE. The tax is about 1/3 to 1/4 of gross weekly pay.
The presentation makes the magic.
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ed rhodes Inner circle Rhode Island 2885 Posts |
Yeah? We have the same thing here. But if you get money from someone, the IRS doesn't care if it was someone else's "net" wages or not. All they care about is that YOU'VE received income and they want their piece of it.
"...and if you're too afraid of goin' astray, you won't go anywhere." - Granny Weatherwax
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D. Yoder Veteran user 376 Posts |
I pay taxes on the couple hundred dollars that I make. It is a hassle to fill out the extra forms. By the time I deduct my expenses, the amount of taxes that I'm paying is minimal, but my thinking is being legal is better than not being legal.
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writeall Special user Midland, Michigan 930 Posts |
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On May 7, 2016, D. Yoder wrote: It's handy for when you need proof of income and don't have a paystub. For major loans the bank may ask to see a few year's worth of tax returns. Paying taxes also gives you a basis for calculating social security when you retire. |
Kyoki_Sanitys_Eclipse Inner circle 1513 Posts |
You can rally claim what you want to but it's better to be honest so you don't have to worry. How could they prove anything though. Your choice
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