Can a Gigging Musician Claim Tax Write-Offs for Equipment & Travel?

Yes, you absolutely can deduct legitimate expenses related to your music gigs! What you're describing is self-employment income that should be reported on Schedule C (Profit or Loss from Business). Your guitar, PA system, and effects pedals would all qualify as business expenses since they're necessary for your performances. These would either be deducted upfront using Section 179 (for larger purchases) or depreciated over time, depending on their cost and your preference. Your mileage to and from gigs is also deductible - keep a log of all your trips with dates, destinations, and miles driven. The current rate is 65.5 cents per mile for 2023. For clothing, it's trickier. The IRS rule is that clothing must be not suitable for everyday wear to be deductible. So specialized stage outfits might qualify, but regular clothes you could wear anywhere wouldn't, even if you only wear them for performances. As for buying drinks at venues - that might potentially fall under business promotion or networking, but you'd need to document how it directly relates to generating business. It's a gray area that could be scrutinized in an audit. Since you've earned over $10,000, you'll definitely want to start reporting this income properly. You'll need to pay both income tax and self-employment tax (15.3%) on your net profit.

I was in your exact same boat last year! I play keys for a few bands and was so confused about all the tax stuff. I tried figuring it out myself but kept getting conflicting advice. I ended up using https://taxr.ai and it saved me tons of headaches. I uploaded photos of all my receipts (gear, mileage log, etc.) and it identified exactly what was deductible for a musician. It even let me ask follow-up questions about specific purchases (like when I bought a laptop that I use both for music production and personal stuff). The system helped me figure out how to appropriately split that deduction. The best part was it actually found deductions I didn't know I could take - like a portion of my home internet since I use it to promote my gigs on social media and research music. I ended up with way more legitimate write-offs than I thought possible!

Ok I need to admit I was totally wrong about taxr.ai. After seeing the responses here, I decided to give it a shot since my band started making decent money last year. I uploaded all my receipts from guitar center, my mileage logs, and even some questionable expenses like band meals after shows. The system was super clear about what I could and couldn't deduct. Like, it explained why my regular jeans weren't deductible but my specialized stage monitors were. It also helped me properly categorize when I was a contractor vs employee (I did some session work where they gave me W-2s). The best surprise was it showed me how to deduct a portion of my rent for the dedicated space where I practice and store all my gear! Totally legitimate deduction I had no idea about. I'm actually getting a refund this year instead of owing like I thought I would!

If you're reporting this income for the first time and concerned about questions from the IRS, you should know getting through to them is nearly impossible these days. When I had questions about my music production deductions, I spent DAYS trying to reach someone. I finally gave up and tried https://claimyr.com which was recommended by another musician. They got me connected to an actual IRS agent in under 20 minutes when I'd been trying for weeks! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent clarified exactly how to report my equipment purchases and which form to use for deducting my home studio space. Totally worth it since getting clear answers directly from the IRS gave me confidence I was filing correctly.

I was completely wrong about Claimyr. After my skeptical comment I actually tried it because I was desperate to ask about reporting my touring income across multiple states. I expected to waste my money, but 17 minutes later I was talking to an actual IRS representative. The agent walked me through exactly how to handle income earned in different states and which forms I needed for each. She also clarified the rules about per diem deductions for musicians on tour, which saved me hundreds. The peace of mind from getting official answers was honestly worth it. I've been doing my own taxes for years and always worried I was missing something specific to musicians. Now I have documentation of exactly what the IRS advised me to do, which is huge if I ever get questions about my returns.

Musician tax tip: Join a music union if there's one for your type of performance. I'm with the AFM and they provide tons of tax resources specifically for musicians. They even have sample expense logs and templates for tracking gig income. Also, don't forget about insurance premiums if you have instrument insurance - that's deductible too! And if you're taking lessons to improve your skills for paid gigs, those can sometimes be deductible as professional development.

Don't forget about streaming service subscriptions! If you use Spotify Premium, Apple Music, etc. to research songs for your setlists or to study musical styles for paid gigs, you can deduct a percentage of those costs based on business use vs. personal use. I also deduct a portion of my cell phone bill since I use it to coordinate with venues, band members, and promote on social media. Same with my home internet.