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 Post subject: How do you handle taxes?
PostPosted: Thu Jun 04, 2009 1:53 am 
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born to perform.

Joined: 18 May 2006
Posts: 1784
I'm going to start table hopping soon so I'm trying to make sure I know everything I need to know because I would hate to find out something as I go along, although I'm sure that will happen since you can't know everything ahead of time lol.

My question is how do you handle taxes though? Since you work for yourself you are in control of paying taxes right?

Also, another question thats a little less important, what do you do if someone watches you perform something at one table and asks you to do it for again for them so that they can see it twice basically? What do you think is something good to say for that?


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 Post subject:
PostPosted: Thu Jun 04, 2009 4:31 am 
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I am going to assume that you are in the U.S. Go to the local IRS office and get the forms to file your quarterly taxes. then you pay every quarter your estimated taxes. At the end of the year you file as usual and will either have a tax bill for the remainder or a refund if you overpaid.


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 Post subject:
PostPosted: Sat Jun 06, 2009 9:17 am 
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born to perform.

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I live in Australia, and personally. . . try to get paid cash, its easier overall and taxes. . . I avoid them with my gigs :lol:


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 Post subject:
PostPosted: Sat Jun 06, 2009 12:39 pm 
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Here in the U.S. the Interbal Revenue Service (IRS) can get really mad if you don't pay your taxes. They do things like add interest and a penalty of up to 50% of what they think you owe. If you don't pay that they can confiscate your property, yes even your house if you own it, and put you in jail.

All that for a lousy hundred dollars isn't worth it. Maybe Oz doesn't care but the U.S. does.

Paddy


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 Post subject:
PostPosted: Sun Jun 07, 2009 8:35 am 
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born to perform.

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Location: Sydney
paddy wrote:
Here in the U.S. the Interbal Revenue Service (IRS) can get really mad if you don't pay your taxes. They do things like add interest and a penalty of up to 50% of what they think you owe. If you don't pay that they can confiscate your property, yes even your house if you own it, and put you in jail.

All that for a lousy hundred dollars isn't worth it. Maybe Oz doesn't care but the U.S. does.

Paddy


Its the same here Paddy, it's just like one of those things (note we dont pay tax if we make under like $8000 a year) and so the government doesn't really care if they miss a few hundred or so here and there, but if someone is putting thousands in their bank account every week with no real kind of job on their record, then yes that is investigated right away.


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 Post subject:
PostPosted: Mon Jun 08, 2009 1:20 am 
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born to perform.

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Ha yeah thoughts about not paying taxes enter my mind lots of times lol. And thats regardless of doing magic lol. I HATE the idea of taxes, especially certain ones like the federal income tax here in the U.S., and the death tax, oh property tax too, and lets not forget about the thousands of other kinds of taxes.

Its insane. And yet people keep voting for people that will raise taxes too.

Thanks for the replies though. I was thinking basically the same thing but I wanted to be sure.


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 Post subject:
PostPosted: Sun Jun 14, 2009 4:09 pm 
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Unless you are making crazy money, forget about taxes. If you rent for the most part, there is nothing to raise a red flag anyways.
You'll be just fine

Only way to repeat an effect is if the method is different and if it builds.

If you cant just say. "Ok. But lets do it a little differently this time" and go into whatever you want basically :P
After 5 secs they wont even remember that they asked you to repeat the effect


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 Post subject:
PostPosted: Sun Jun 14, 2009 5:47 pm 
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SlipperyPete wrote:
Unless you are making crazy money, forget about taxes. If you rent for the most part, there is nothing to raise a red flag anyways.
You'll be just fine

While most of the time that is true, in the future if you are ever audited then you're screwed. ;)


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 Post subject:
PostPosted: Sun Jun 14, 2009 7:20 pm 
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SlipperyPete wrote:
Unless you are making crazy money, forget about taxes. If you rent for the most part, there is nothing to raise a red flag anyways.
You'll be just fine...


You have a point but you forgot one tiny thing. Busking provides my main income. If you want to rent an apartment, buy a car or a TV you have to prove your income. The only way to prove income when you are self employed is by your tax forms. Without paying taxes you can't even rent a place to live. Problem, eh? (Threw that in for the Canadians.)

Paddy


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 Post subject:
PostPosted: Sun Jun 14, 2009 7:48 pm 
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You can find decent apartmants without W2 forms


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 Post subject:
PostPosted: Mon Jun 15, 2009 5:38 am 
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Not in my area. Landlords want to know you can pay the rent so they don't have to evict you in a few months. In fact my landlord wants proof of income plus he runs a credit and records check on applicants.


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 Post subject:
PostPosted: Tue Jun 30, 2009 3:26 am 
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SlipperyPete wrote:
You can find decent apartmants without W2 forms


not in my area either; there are more & more "checks" being researched when one fills out the paperwork for an apt ...

... and too, as is the case in various other cities, here there are local ordinances that A) allow one to perform [subject to rules] in public, and B) allow one to actively pass a hat and/or ask for tips in public.


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 Post subject:
PostPosted: Wed Jul 01, 2009 2:10 am 
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Location: Adelaide, Australia
You guys in the US sound like you have it so hard!!

Come live in Australia. Taxes are easy! Renting a property is easy! Everything is easy! AUSSIE! AUSSIE! AUSSIE!

But on a serious note, those of you concerned about what to do for taxes, regardless of where you live - go see a a registered tax agent (or whatever the equivalent is in your country). For a small fee it is well worth it to get correct legal/tax advice rather than opinions and thoughts from others here on the forum (unless those of you that have replied are registered tax agents?)


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 Post subject:
PostPosted: Thu Jul 02, 2009 12:04 am 
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Yea...If you are a full-time magician as in your "main" income, like Paddy...file taxes !

The other benefit with that is the "expence write-off's"...As in your props, supplies, cards etc :)

And having an account or H & R Block doing them is better.


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 Post subject:
PostPosted: Sat Jul 04, 2009 4:01 am 
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kconnors wrote:
Yea...If you are a full-time magician as in your "main" income, like Paddy...file taxes ! The other benefit with that is the "expence write-off's"...As in your props, supplies, cards etc :)


it's not always just if [street-magic/busking] is your "full-time" / primary source of income; locally we'd have to run it through the Comptroller's Office for a license of sorts & the quarterly filing of income statements.

best bet: research the legalities in your local area before you start; know the rules that apply to you.


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