Taxes for private music tehcers

All about making money.
Post Reply
User avatar
Trombone
Posts: 9
Joined: Fri Mar 23, 2018 9:34 pm

Taxes for private music tehcers

Post by Trombone » Tue Mar 16, 2021 10:12 am

I want ot know your experience with paying taxes as a private music teacher, like zoom lessons and stuff. if teaching lessons is my ownly income how much do I pay in taxes, percentage wise? can someone point me in the right directyion for more information, especialy for US tax. thank you for your time.
Posaunus
Posts: 1915
Joined: Fri Mar 23, 2018 9:54 pm
Location: California

Re: Taxes for private music tehcers

Post by Posaunus » Tue Mar 16, 2021 10:26 am

If you are in the United States, the law requires that you report all your earned income, however obtained.
The tax you will pay must be determined by filling out federal and state tax returns.
But of course (if you "itemize" your deductions) you can deduct all your business-related expenses, which may substantially reduce your taxable income.

You should try to figure out (approximately) how much you may owe, and make estimated tax payments quarterly.
It's actually pretty straightforward, but you'll have to do some reading. Lots of helpful material available from numerous sources, including the Internal Revenue Service.

If you are confused about this, seek professional advice.
Kdanielsen
Posts: 273
Joined: Sun Jul 28, 2019 9:35 pm
Location: New England

Re: Taxes for private music tehcers

Post by Kdanielsen » Tue Mar 16, 2021 11:19 am

Short answer is it's about the same as other income but it feels like a lot because nothing is withheld throughout the year (therefore instead of a refund you have to pay).
Kris Danielsen D.M.A.

Freelance Musician & Educator
User avatar
BGuttman
Posts: 4078
Joined: Thu Mar 22, 2018 7:19 am
Location: Cow Hampshire

Re: Taxes for private music tehcers

Post by BGuttman » Tue Mar 16, 2021 12:20 pm

If you are earning a significant amount of money doing this you should be filing quarterly statements with the IRS (note: this is for US) and sending in advanced payments of your taxes. This applies if you are earning more than the minimum taxable income or if the lessons constitute over 10% of your income.

If you are not in the US, the rules are different. Consult your country's Tax office.
Bruce Guttman
Merrimack Valley Philharmonic Orchestra
"Almost Professional"
User avatar
robcat2075
Posts: 686
Joined: Mon Sep 03, 2018 2:58 pm

Re: Taxes for private music tehcers

Post by robcat2075 » Tue Oct 26, 2021 2:22 pm

I strongly recommend you carefully read the IRS page of Q&A on self-employment income...

https://www.irs.gov/businesses/small-b ... tax-center

Self employed workers must pay the "employer" portion of social security dues in addition to the employee portion. And Medicare, too. There is about a 20% bite regardless of the actual income tax bracket.
What are My Self-Employed Tax Obligations?

As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly.

Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. SE tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. In general, anytime the wording "self-employment tax" is used, it only refers to Social Security and Medicare taxes and not any other tax (like income tax).
>>Robert Holmén<<

Hear me as I play my horn

See my Spacepod movie
User avatar
robcat2075
Posts: 686
Joined: Mon Sep 03, 2018 2:58 pm

Re: Taxes for private music tehcers

Post by robcat2075 » Tue Oct 26, 2021 2:37 pm

I'll also note that careful record keeping for any business expenses you hope to deduct from your business income is important.
>>Robert Holmén<<

Hear me as I play my horn

See my Spacepod movie
JLivi
Posts: 507
Joined: Thu May 10, 2018 4:24 pm
Location: Chicago, IL
Contact:

Re: Taxes for private music tehcers

Post by JLivi » Tue Oct 26, 2021 9:15 pm

I keep a spreadsheet of every lesson I teach.

Name of the student
Date of lesson
Amount of money made

At the time my tax projections are due, I add it all up for the auarter, and then send away 30% to the feds and 5% to my state. It's a little bit on the high side because of deductions and such, but I would rather be safer than sorry.

And to be honest, it's not a perfect system, paying quarterly taxes that is, but it's a lot better than having to send off a very large amount of money when you file your taxes. You're able to save for taxes as the money comes in instead of being blindsided at the end of the year.
King 3b(f) (AR 25.10)
Conn 79h
Kanstul 1585 (Monette BT2)
Olds Flugabone
Jimkinkella
Posts: 176
Joined: Fri Mar 23, 2018 11:43 am
Location: Los Angeles

Re: Taxes for private music tehcers

Post by Jimkinkella » Tue Oct 26, 2021 9:23 pm

I’ve got a bunch of tax info, I’m self employed for the day job.
Feel free to pm me
Jim
User avatar
BGuttman
Posts: 4078
Joined: Thu Mar 22, 2018 7:19 am
Location: Cow Hampshire

Re: Taxes for private music tehcers

Post by BGuttman » Wed Oct 27, 2021 4:32 am

JLivi wrote:
Tue Oct 26, 2021 9:15 pm
I keep a spreadsheet of every lesson I teach.

Name of the student
Date of lesson
Amount of money made

At the time my tax projections are due, I add it all up for the auarter, and then send away 30% to the feds and 5% to my state. It's a little bit on the high side because of deductions and such, but I would rather be safer than sorry.

And to be honest, it's not a perfect system, paying quarterly taxes that is, but it's a lot better than having to send off a very large amount of money when you file your taxes. You're able to save for taxes as the money comes in instead of being blindsided at the end of the year.
The rules are that you must file quarterly paying income tax and FICA (social security). You reconcile your payments with tax due in your annual income tax statement. This applies if the self-employment income is the dominant part of your total income. Part time private teachers with a "day job" may not have to file quarterly.
Bruce Guttman
Merrimack Valley Philharmonic Orchestra
"Almost Professional"
User avatar
robcat2075
Posts: 686
Joined: Mon Sep 03, 2018 2:58 pm

Re: Taxes for private music tehcers

Post by robcat2075 » Wed Oct 27, 2021 7:36 am

IF you are tax form averse, I can recommend using Turbo Tax online to do your return. It guides you through every step, tells you what documents you need for each question and will print out the finished forms.

They let you go through the whole process for free, before you have to decide if you want to pay for it and get the finished return.

I have a complicated portfolio situation; it was able to vacuum in all the information directly from my broker and automatically drop the right numbers in the right place on the right forms, of which there were many.
>>Robert Holmén<<

Hear me as I play my horn

See my Spacepod movie
DominicaSanchez
Posts: 18
Joined: Wed Sep 22, 2021 6:02 am
Location: Orlando

Re: Taxes for private music tehcers

Post by DominicaSanchez » Sun Nov 14, 2021 11:04 pm

Trombone wrote:
Tue Mar 16, 2021 10:12 am
I want ot know your experience with paying taxes as a private music teacher, like zoom lessons and stuff. if teaching lessons is my ownly income how much do I pay in taxes, percentage wise? can someone point me in the right directyion for more information, especialy for US tax. thank you for your time.
My teacher gives additional classes and he needs to pay taxes. He says it is illegal not to pay taxes even if classes for free :?
mbarbier
Posts: 129
Joined: Thu May 17, 2018 9:58 pm

Re: Taxes for private music tehcers

Post by mbarbier » Mon Nov 15, 2021 11:37 am

If you're doing a lot I really suggest getting an accountant. It's really worth it, especially when you're getting started as they can really help with write offs. There's a lot there and it's worth paying someone for at least a few years to make sure you're doing it right.
trombone faculty at CalArts and LA City College
1/2 of RAGE Thormbones
they/them
https://mattbarbier.bandcamp.com/
http://www.mattbarbier.com/
Post Reply

Return to “Music Business”