As a musician, the thought of managing taxes may seem tedious or dull when you’re used to spending your time being creative. However, an effective tax return will offer you more flexibility and can, perhaps, be the wisest thing you can do as a performer. It’s, therefore, essential to be informed about the specific deductions that are available to you as a musician.
Things to Note About Tax Deductions
Any money you spent on goods or services during the tax year that was directly relevant to making a living is eligible for a deduction. There are two things you should keep in mind: firstly, the money must have been spent by you, and secondly, a record (for example, receipts or invoices) must be kept as proof of spending.
Deductions You Can Claim as a Musician
Travel and Car Expenses
If you travel for work and must spend the night away from home whilst covering these costs yourself, tax deductions will be available. For instance, if you are giving a performance in another city for one or more nights, you can claim the cost of transport, accommodation, meals, and other related expenditures. You may even claim for any expenses associated with taking your vehicle, such as fuel and parking fees. Similarly, car expenses that involve driving to and from work-related destinations, such as to a radio station for an interview, can be claimed.
Job-Specific Clothing Items and Grooming Costs
These include both protective and general clothing required for your job or performance. Expenses for buying, cleaning or repairing these items are available for tax deductions. Likewise, any grooming expenses are connected to certain aspects of work, such as paying for hair services and makeup purchases.
The cost of maintaining and repairing your instruments and equipment can be deducted from your tax. This includes any expenditure made on professional services, such as a guitar tech, as well as any repairs and replacements you have made.
You can also claim for the cost of music materials, including sheet music, books, and any other music-related items.
Education and Training
Any fees or costs that you incurred for music-related education or training can be deducted from your taxes. This could include enrolling in a music school or taking private lessons.
If you have spent money on promotional materials or advertisements for your music, such as posters and flyers, you can claim these expenses. You may also claim any money spent on a website or social media management.
If you are self-employed, you can deduct expenses associated with running your business. This may include office supplies, software and equipment, and internet services.
As a musician, other tax deductions that are available to you include commissions paid to your agent, multimedia costs (for instance, music file downloads) and any internet or cellular costs. In addition, expenses related to portfolios for publicity and journals or magazines, as well as anything related to equipment purchases, such as instruments.
Deductions Unavailable to You
It’s important to note the various expenses you won’t be able to claim. These include standard clothing worn daily, that is, not for performance or media purposes, personal education courses, costs related to childcare, food consumed during regular working hours and expenses for regular health and fitness.
We at Perth Mobile Tax and Business Services are eager to take away all your tax worries. Our tax agents, equipped with more than 30 years of experience, will assist you in straightening out any tax confusion you may have and ensure you’re up to speed with all your tax matters and obligations. Contact us today to meet with an agent you can trust.