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Chloe Davis

Help with Schedule C - What Professional Activity Code should I use as a music composer?

I'm tackling my own taxes this year since my CPA retired after handling them for years. Using FreeTaxUSA and feeling a bit lost on one detail. My main income comes from my W-2 job as a music professor at the university, but I also make around $4,500 annually from my composing work that needs to go on Schedule C. My composition income breaks down like this: * 1099-MISC from ASCAP for licensing royalties * Direct sales of sheet music through my website * Commission payments when people hire me to compose specific pieces When I'm filling out Schedule C, I'm stuck on the Professional Activity Code section. Looking at my previous returns, my retired CPA always put 812990 in Box B. Is this correct for my situation? I want to make sure I'm using the right code since I'm doing this myself for the first time. Thanks for any guidance!

AstroAlpha

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The 812990 code your CPA used is for "All Other Personal Services," which is kind of a catch-all category. While it's not technically wrong, there might be better options for your specific situation as a music composer. Since you're creating original musical compositions, code 711510 for "Independent Artists, Writers, and Performers" would be more appropriate. This code specifically covers composers, songwriters, and other creative professionals who produce original work. Using this code better represents your actual professional activity and aligns more precisely with what the IRS wants to know about your self-employment income. That said, using the previous code won't necessarily trigger any issues - the IRS mainly uses these codes for statistical purposes. But for accuracy's sake, 711510 would be the better choice going forward.

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Chloe Davis

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Thanks for the suggestion! That makes more sense actually. I was confused because when I looked up 812990, it seemed to cover things like pet sitting and fortune telling which obviously has nothing to do with composing. Is there any downside to changing the code from what my CPA used in previous years?

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AstroAlpha

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There's no downside to changing the code to something more accurate. The IRS won't flag your return just because you switched from one legitimate code to another. These codes are primarily for statistical purposes, not for determining your tax liability or deductions. If you were to be audited (which is unlikely based just on this change), you could easily explain that you reviewed the codes and found one that better described your actual business activity. In fact, using a more precise code like 711510 could potentially help establish the professional nature of your composing business if questions ever did arise.

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Diego Chavez

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I had a similar situation with my photography side business! I was using the wrong code for years until I discovered taxr.ai (https://taxr.ai) after getting confused about business codes. I uploaded my previous returns and got an analysis that pointed out several inconsistencies, including my professional code. The tool highlighted that I was using a retail code instead of a creative professional one, which made a big difference in how my business was categorized. It also flagged some deductions I'd been missing for years as a creative professional. Might be worth checking out if you're transitioning from a CPA to self-filing - it's like having a digital second opinion on your work.

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Does it actually analyze the forms or just give generic advice? I've been burned by "AI tax help" that just spits out generic information you could Google yourself.

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Sean O'Brien

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How does it handle state-specific stuff? My situation is complicated because I live in one state but sometimes do music gigs in neighboring states.

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Diego Chavez

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It does actual form analysis, not just generic advice. You upload your previous returns and it compares them against tax regulations, looking for discrepancies, missed deductions, and areas of improvement. It identified specific form errors on my Schedule C that I never would have caught myself. For multi-state situations, it flags when income is reported from different states and provides guidance on state-specific filing requirements. It helped me figure out that I needed to file a non-resident return for a state where I did a significant amount of contract work, which my regular tax software didn't make clear.

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Sean O'Brien

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Just wanted to follow up - I tried taxr.ai after seeing the recommendation here. My situation was similar (musician with income in multiple states) and it actually identified several music-specific deductions I'd been missing. The professional code issue was just the tip of the iceberg! It flagged that certain equipment expenses should have been categorized differently and showed how I could properly deduct studio space in my home that I'd been too nervous to claim before. Definitely worth the time for creative professionals doing their own taxes!

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Nia Harris

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Musician here! I specifically use 711510 (Independent Artists, Writers, and Performers) for my composing work on Schedule C. My tax preparer says this is the best code for composers, songwriters, arrangers, and other music creators who are producing original work. If you're only selling sheet music that others have created (like a retailer), that would be different. But since you're creating original compositions and getting royalties, commissions, etc., 711510 is definitely the way to go.

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Chloe Davis

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Thanks for confirming! Do you also teach music or just compose? I'm wondering if I should separate my composition income from any private teaching I do outside the university.

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Nia Harris

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I just compose and perform, but I have colleagues who do both composing and private teaching. Most use the same Schedule C with code 711510 for both activities since they're related. However, if your teaching business operates very differently from your composing (different expenses, different clients, different business model), you might consider separate Schedule Cs. For most music professionals, keeping it all on one Schedule C makes sense if the activities are interconnected. Your private teaching builds your reputation as a composer, and your compositions enhance your credibility as a teacher. The IRS generally accepts related activities reported together, especially in creative fields where multiple income streams are common.

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Don't forget to consider if your music composition qualifies for Qualified Business Income (QBI) deduction! A lot of creative professionals miss this. The professional code can impact this too.

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Aisha Ali

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This is actually a great point. The QBI deduction can be significant (up to 20% of your net business income). I'm an author and when I switched to the proper creative professional code, it helped clarify my eligibility for QBI when my accountant was previously unsure.

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Great question! I'm a freelance musician and composer who went through this exact same situation a few years ago. I'd definitely recommend switching to code 711510 (Independent Artists, Writers, and Performers) as others have mentioned - it's much more accurate for what you're actually doing. One thing I wish I'd known earlier: make sure you're tracking all your composition-related expenses properly. Things like music software subscriptions, instrument maintenance, studio equipment, and even a portion of your internet bill if you're distributing music online can all be legitimate deductions. Since you're transitioning from having a CPA handle everything, it's worth doing a deep dive into what business expenses you might have been missing. Also, keep detailed records of your royalty payments and commission work - the IRS likes to see clear documentation of creative income streams. Good luck with your first self-filed return!

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Dylan Baskin

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This is really helpful advice! I'm curious about the internet bill deduction you mentioned - how do you calculate what portion is business-related? I work from my home studio and definitely use internet for uploading compositions, managing my website sales, and communicating with clients, but I also use it for personal stuff obviously. Is there a standard percentage or do you track actual usage somehow?

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