Do you Pay Taxes?

[CerealKiller]

And how do you pay Quatrerly or Yearly. Please give me some advice

[mindonstrike]

Somehow I don't think asking that question in public will elicit the most honest...er...um...accurate answers.

Yearly.

[marklwood]

Without stating my opinion on the moral issues, not reporting income can be a double edged sword. It is great to think of all the $$ you are saving but try to buy a car, house, or anything else on credit. As far as paying quarterly versus yearly, how good are you at saving the cash needed at the end of the year? The other financial advise I give to everyone I know is if your not filing a schedule C why the hell not. Take your favorite hobby, woodworking, quilting, whatever and start writing off everything that can be construed to involve this enterprise. You can lose $$ for years on this and not put up a red flag. You are only perfecting your craft or building your business to fall back on in times of need or after you retire.





Disclaimer: I am not an accountant or an attorney. I in no way am responsible for any problems you have after taking my advice. You F***ed up and trusted me.

[WDEWDAD7]

I agree that not too many will want to respond on whether they are paying taxes or not. However, it is true that if you are applying for some sort of credit, you will be asked for either a profit & loss statement for the last 3 years, or possibly you can apply "stated income". But, it has to be verifiable. I have my taxes done and include karaoke as my secondary business. I have a day job, so I have an extra amount taken out of each paycheck to pay for my self-employment taxes. I don't have to worry about quarterly taxes that way, and it hurts a lot less that way. But, you really should get professional help and opinions for your individual circumstances. Daryl.

[swany]

So far I'm creeping up to earning a profit with my business. I have exploded in the last two years and added two more shows and that takes a lot of the profit, but I'm looking at future earnings.

My bars and regular gigs fill out a 1099 for federal and state purposes. I keep records and claim all earnings and usually wind up settling for at least one third back of what I paid in. That's just with my business deductions, taxes and all the little things that filing a very long form gets you. I'm wondering about this year, my wife retired and I've been for two years.

Yeah but I settle up once a year. Politics the way they are I wondering how I'll fare next year.

[Lonman]

I pay every quarter, actually more than i'm supposed to so I can figure in a refund every year! I do not get paid under the table at all (actually only one club in 15 years allowed this). I've always had to submit either my 1099 or SSN.

[madjim- with the Lord]

Freedom Ain't Free!


Jim

[RailMom]

Originally Posted by CerealKiller

And how do you pay Quatrerly or Yearly. Please give me some advice

A tax consultant will tell you that as a 1099 tax form, you should put away 15% of overall EARNED monies. That's not including the cost of whatever fees you need inorder to run, operate, function the business. That way, you're at least "covered" on your tax fees.

Typically a "traditional" employer contributes 7.5% into taxes (by law) into a taxable employee. The employee is also taxed the additional 7.5% (to equal that 15% I mentioned earlier) through Social Security, FICA, etc.

But, remember, you are ALLOWED deductions! (Especially if you are claiming business and personal together, which most KJ's do. Also, don't forget dependents are deductible too.) Keep ALL your gas receipts, CDG receipts, equipment cost, upgrades, even the stuff you bought on MTU... tax deductible for maintaining the company. Some people are meticulous about keeping their receipts. Some - not so much. But, the IRS recommends that you keep all records for 7 years, after which discard is okay, unless of course, you're in the middle of an audit or in appeals from the IRS.

If you plan on "breaking even", which is what most people in the industry do, so that they don't have to "out-of-pocket" at the end of the year, make sure you can CYA (cover your "ass"ets).

For those whom have a larger scale business with SEVERAL employees, you may consider trying to file a "S Corp" eligibility with the IRS. Of course, there are a lot of pros and cons between a S corp and a C Corp, so I can't tell you what to do. However, I will suggest you look into it, especially if you have employees (SEVERAL to make it worth while, not just one or two employees) and a spouse or outside investor in the company. You can get a HUGE tax break if you qualify.

I hope that helps you a little, as far as a guideline. But, I will suggest seeking the counsel of a professional for assistance. (I have an EXCELLENT guy I can refer, just shoot me a private message and I'll give you his info. He's out of Colorado, but has high profile clients all over the country. He's awesome!! And he doesn't rake you like H&R Block!)

[bryant]

[quote=RailMom;81314]A tax consultant will tell you that as a 1099 tax form, you should put away 15% of overall EARNED monies. That's not including the cost of whatever fees you need inorder to run, operate, function the business. That way, you're at least "covered" on your tax fees.
quote]

I believe this only applies to social Security taxes, usually total 9 -10% self-employment, State tax about 10%, then federal between 15 and 25% there abouts.

When I get a bonus from my regular job, an automatic 30% total is taken out to help account for the three taxes above. I believe a KJ's total is about the same. Then when you file you will most likely get some back as deductions reduced your overall net salary.

[CerealKiller]

Wow thats alot of info Thank you so much for all your posts


Don't feel down about karaoke or the future. things change and anyone who has been doing this long enough starts to question if it worth it or not. give it time and if you still feel the same way in 6 month maybe its time to quit but I think its one of the greatest jobs in the world.

[muzicman144]

I'm pretty sure no one who chooses to continue a career in Karaoke has to worry about a thing. Ever since man hit this earth, he has always looked for the chance to be hero or make a fool of himself (or herself). have a great time doing it, and get applause at the same time. This is the outlet man/women has searched for.
Manufactors who produce the karaoke product are just as the KJ's who use it. There are good ones who will survive, and bad ones who will not. As for those who operate illegally, time will eventually tell on them.
As for taxes, most will pay tax on 1099's, and put the cash in their pocket. I seriously doubt anyone pays tax on cash money, despite the claims some will attempt to make as to complete honesty. I know most KJs are pretty much legiimate with their music files, but most have shaded the edge a little at times, despite claims to the opposite. Just the way most humans are.
muzicman

[Lonman]

I've never worked in a club that hasn't required me to fill out a 1099 & I got a yearly summary at the end of the year. Are there some that do not require it? They have no record of where their money went, bad business on their behalf.