<p>I have two tax-related questions that I would appreciate advice on, if anyone has experience with such:</p>
<p>S played once as guest soloist with a symphony this year, earning $500. However, they also reimbursed him for travel, and and I was surprised to see that they listed that as well on the 1099-MISC (making it a total of $738.80, all under "Non-employee compensation"). So, from what I've read, it looks like I have to file a Schedule C and a Schedule SE for that amount--anyone have experience with this? Am I correct? Or, can I just consider this a "sporadic activity" as listed on the back of the 1099-MISC as not being SE income? It just seems odd, because the travel expenses were not really income.</p>
<p>Also, he won a competition during the year, and the amount of the prize was also reported on a 1099-MISC. However, this is not income from work. So, can I just report it as "Other Income" on Line 21 of the 1040 (without filling out Schedule C/SE)?</p>
<p>Thanks for any advice you might have!</p>
<p>The $500 earned from performing with the symphony is income, whether you report it on a Schedule C or use another tax form. The expenses for travel ($278) are not income and should not be reported as income. I usually attach a note to the IRS with my 1040 in such cases explaining which portion of the amount on the 1099 is income and which portion is just reimbursement for expenses put out. </p>
<p>The competition prize is also considered income (performing music is work). </p>
<p>I would imagine that such earnings would probably not amount to any tax owed to the IRS (except payroll tax) because of the all the expenses that would be deducted as well (cost of instrument, lessons, music etc.). </p>
<p>I’m not a tax attorney. For any more questions I’d recommend using Turbo Tax or a tax specialist.</p>
<p>Hmm, you’ve got me thinking. So far this year my 16 year old has won and earned about $5,000. That’s certainly enough to be taxable.</p>
<p>Just today, D put on her big girl pants and paid an inordinate amount of money to consult with an accountant who specializes in filing taxes for performing artists. I tried to help her a month ago, tried to go through the endless files but finally told her that it would be money well spent. Especially when it comes to his consultation on planning for next years taxes. (she is not a dependent) Four full time/part time jobs in music, 18 private students, winnings from competitions, independent paid singing gigs, grants, travel expenses, gowns, recording costs, theatrical make up, web expenses, etc etc etc. The mind boggles. She really should have consulted with someone before her first year of grad school.</p>
<p>woodwinds, Yes I understand that both are considered income (competition prize as well as symphony solo gig) but what I’m not sure about is whether or not he has to pay self-employment tax on them (Schedule SE). I guess I just didn’t consider a competition award as being self-employed. I was going to just list them both on line 21 as other income. But, then I got to reading the back of the 1099-MISC which talks about Schedule C’s and self-employment tax.</p>
<p>List the entire amount of the symphony gig on the schedule C then deduct the cost of the travel, meals, etc on the Schedule C part II expenses line 24. A good computer tax program should make this relatively painless.</p>
<p>Thanks, Momofbassist. That’s exactly what I did. For the competition prize money, I listed it on 1040 line 21 as “other income” and listed it as “Prizes and awards”. So, I think I have things figured out. Now two state tax returns to do yet (our home state plus non-resident earnings for state his college is in) and I’ll be done! I have completed CSS Profile and FAFSA today, so I am feeling a bit of a sense of accomplishment!</p>
<p>It is of course, not very clear to the IRS either. On the fact sheet for Reporting Misc Income, it says to list prize money on line 21</p>
<p>[Reporting</a> Miscellaneous Income](<a href=“http://www.irs.gov/newsroom/article/0,,id=175963,00.html]Reporting”>http://www.irs.gov/newsroom/article/0,,id=175963,00.html)</p>
<p><a href=“http://www.irs.gov/pub/irs-pdf/p525.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p525.pdf</a></p>
<p>Good luck!</p>
<p>Haha! Had fun glancing through the irs link you posted, GottaSingOpera: I learned that among the things that should also be listed on line 21 are money received from bribes or illegal activities! So good to know :)</p>
<p>Clarimom, you deserve an adult beverage or a bubble bath (or both)!</p>
<p>Thanks! I’ll get right to that!! :D</p>