Re: Harp players reporting income?



Andy wrote:
Please enlighten us on-list as to what the threshold is for music 
income on a 1099 here in the USA, if anyone knows. <snip>

Who has some experience here with the business end of things that 
could enlighten me (I'll pass on the info. to the harp player in 
question) and others)?
________________
As has been previously posted, the 1099 "threshold" in the US is $600 
- -- but that doesn't necessarily mean much because many clubs (as well 
as BMI and other entities) will send a 1099 even if the total earned 
is less than $600.  And conversely, although payers of more than $600 
are supposed to send 1099s (both to recipients and to the IRS,) there 
will always be a few who simply don't...

Plus, if you (individually) find yourself in the unenviable position 
of having to eat the tax liability for your entire band, then it is 
in your best interest to send out 1099s yourself -- to your own band 
members -- in order to fairly distribute the burden and reduce your 
own liability back to it's rightful share.

Bottom line: If you earn money from music, the wisest course of 
endeavour is always to keep your own income records (as well as 
records of all your legitimate expenses,) and not rely upon 1099s to 
remind you how much you made. The IRS are not fools.  Nossir....

- -Tom





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