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Has anyone here used specialized tax software for musicians instead of the general ones like TurboTax? I'm in a similar situation (musician + day job) and tracking mileage is just one part of what I need to figure out. Also need to handle equipment depreciation, home studio space, etc.
I've used TaxSlayer which has a self-employed option that works well for musician income. Nothing fancy but it has all the Schedule C stuff you need without being too expensive. The key is categorizing everything correctly yourself beforehand - no tax software will know which of your trips were business vs personal. For your home studio, be really careful - you need to measure the exact square footage used EXCLUSIVELY for business purposes. If you ever use that space for anything personal, it doesn't qualify. This is where most musicians mess up on home office deductions.
The advice here about Schedule C is spot-on. I've been filing as a self-employed musician for 3 years now after initially trying to figure out the QPA rules (which are basically obsolete for anyone with a day job). One thing I'd add about mileage tracking - consider using a smartphone app like MileIQ or Everlance to automatically track your drives. You can then categorize each trip as business or personal afterwards. This creates the contemporaneous log the IRS wants without having to remember to write everything down manually. Also, don't forget you can deduct other vehicle expenses beyond just mileage if you keep detailed records - things like parking fees at venues, tolls for gigs out of town, etc. Just make sure they're directly related to your music business activities. Your 8,500 miles at 58.5 cents per mile would be nearly $5,000 in deductions, so it's definitely worth getting this right. The key is showing you're operating as a business, not just a hobbyist who occasionally gets paid.
Not to go off-topic, but what tax software do people recommend for reporting gambling? I tried using TurboTax last year and it was terrible for handling my gambling - kept wanting me to enter every single session separately which would have been hundreds of entries.
I've had good luck with TaxAct Premium. It lets you enter a summary of your gambling by type (slots, table games, sports) rather than individual sessions. As long as you keep the detailed records separately in case of audit, this is perfectly acceptable.
Thanks, I'll check out TaxAct. I was going crazy trying to enter everything line by line in TurboTax!
I feel your frustration completely. I've been dealing with similar issues as a poker player who travels to tournaments. The current system is absolutely backwards - you can win $10,000 in January, lose $12,000 over the rest of the year, and still owe taxes on that $10,000 "income" even though you're net negative $2,000. What really gets me is that the IRS treats gambling differently from other activities. If you're a day trader and lose money, you can deduct those losses against other income (up to $3,000 per year). But gambling losses? Only deductible against gambling winnings, and only if you itemize. I've been following the legislative side of this issue, and unfortunately Omar is right - reform isn't happening anytime soon. The revenue loss estimates kill any momentum these bills might have. The gambling industry keeps pushing for change, but Congress sees those billions in tax revenue and won't budge. My advice? Keep those meticulous records you mentioned, consider whether you might qualify for trader/professional status if your volume is high enough, and maybe look into some of the tools others have mentioned here for better organization. The system sucks, but we're stuck with it for now.
This is exactly the kind of comprehensive breakdown I was hoping to see! As someone new to following this issue, I'm curious - when you mention "trader/professional status," are there specific thresholds or criteria that determine if someone might qualify? I've been wondering if the volume of my poker tournament play might put me in a different category than casual gambling, but I have no idea what the IRS looks for when making that distinction. Also, the comparison to day trading losses is really eye-opening. It does seem completely arbitrary that one type of speculative activity gets more favorable tax treatment than another, especially when both involve similar risks and skill elements.
I went through this exact same situation two years ago when I started my first tax prep job. The key is to be persistent and use multiple approaches simultaneously. First, call the PTIN helpdesk at 877-613-7846 first thing Monday morning - they get fewer calls early in the week. Have your application number ready and explain that this is delaying your employment start date. Ask specifically for "expedited processing due to employment necessity." Second, double-check that your notarized documents are crystal clear - the IRS scanning system is very picky about image quality. If there's any doubt, get new notarized copies and resubmit with high-resolution scans. Third, contact your local IRS Stakeholder Liaison office. They sometimes have direct contacts in the PTIN processing center and can make inquiries on your behalf when there's a legitimate business need. Finally, document everything - save emails, keep call logs with reference numbers. If this drags on, you'll need this documentation for any escalation. Don't panic - this happens more often than you'd think, and there are ways to resolve it faster than the standard 6-week timeline. Stay on top of it and you should get through this soon!
I'm currently going through a similar PTIN delay situation, so I feel your pain! One thing that helped me was reaching out to my local VITA (Volunteer Income Tax Assistance) coordinator. Even though you're not doing VITA work, they often have direct contacts at the IRS PTIN office and can sometimes make inquiries on behalf of people in the tax prep community. Also, if you haven't already, make sure you're checking your application status daily at IRS.gov/ptin. Sometimes the status updates before you get any email notifications. I noticed my status changed to "under review" about a week before I actually heard anything official. In the meantime, ask your supervisor if there are any continuing education courses or tax software training you can complete while waiting. Many firms will reimburse for relevant courses, and it shows initiative while you're stuck in this frustrating waiting period. Hang in there - this will get resolved!
I work in tax prep and see this all the time. Code 152 is just a processing status code - nothing to worry about. However, if you want to know EXACTLY whats happening with your refund and when youll get it, use taxr.ai. Its this new AI tool that analyzes your transcript and gives you specific dates and explanations. Way more accurate than WMR or trying to decode everything yourself. Saves tons of time and stress. Only costs a buck too.
Code 152 just means they're still processing - totally normal! I had the same thing happen last year and it took about 26 days total. The bars disappearing is also super common, doesn't mean anything bad. Just means they moved your return to the next stage. As long as you haven't gotten any CP notices in the mail, you're good to go! Hang tight, refund should come soon š¤
Paolo Marino
better safe than sorry - put that refund money aside until you know for sure whats going on
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Marcus Williams
This happened to me too! My transcript showed $0 but I kept getting notices. Turns out there was a penalty assessment that hadn't updated on the transcript yet. I'd definitely recommend getting a tax professional to help sort this out, or try one of those transcript analysis tools people are mentioning. Don't ignore it though - they can definitely offset your refund even if the transcript looks clean right now. Better to deal with it upfront than lose your refund later!
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