TromboneChat

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.

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.

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).

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.

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).

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

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.

I’ve got a bunch of tax info, I’m self employed for the day job.
Feel free to pm me
Jim

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.

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.

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

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.

Huh. okey thnsnks

Get an accountant one who ideally a specialist in dealing with muso’s

The relevant tax form from the IRS in the United States is Schedule C (Profit or Loss from Business). Taking a look at this should answer a lot of your questions. It is a good idea to set up your accounting records with the same categories as can be found on Schedule C, especially concerning expenses. This way you will already have all the totals you need come tax time and filling out Schedule C becomes relatively easy.

stevenvortigern wrote: ↑Thu Jan 26, 2023 5:56 pm The relevant tax form from the IRS in the United States is Schedule C (Profit or Loss from Business). Taking a look at this should answer a lot of your questions. It is a good idea to set up your accounting records with the same categories as can be found on Schedule C, especially concerning expenses. This way you will already have all the totals you need come tax time and filling out Schedule C becomes relatively easy.

Absolutely, that’s great advice! Keeping your accounting records aligned with Schedule C categories really simplifies the process during tax season. It’s also helpful to track expenses throughout the year to avoid any last-minute scrambles. Have you found any specific tools or software that make organizing those records easier? It could be valuable for others looking to streamline their accounting process!

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.

To get professional advice ask your accountant. If you don't have one get one.

Keep track of everything. Use an accountant (not HR block or one of those places). Be prepared to pay a potentially hefty tax bill.