Tuesday, February 2, 2010
Tax time is approaching, and if you work in a creative industry—dance, theater, music, visual art, or writing—you may find this process especially "taxing"! Does the IRS consider your art practice a business or a hobby? Can you file as an independent contractor or might you be considered an employee? Perhaps you have asked yourself such questions. To further complicate matters,
according to CPA Julie Herwitt, the IRS has announced that starting in November 2009, it will begin a special initiative to audit individual income tax returns with Schedule C’s that show a loss. (The Schedule C is the tax form most artists use
to report their business income and related expenses). The IRS has stated it plans to focus on certain industries in these
audits, including craft sales, photography, art, and writing.
Therefore, artists, performers, and writers need to be extra diligent
in their record keeping.
If you're not quite sure how to keep such records, or are feeling otherwise overwhelmed in regard to tax prep, you can find answers at this informational Creatives at Work Forum, led by Julie Herwitt. She will demystify the process of tracking art-related expenses and filing a Schedule C (+ much more). The forum takes place on February 2, 2010, from 6 pm – 7:30 pm, at the Claudia Cassidy Theater. The theater is located in the Chicago Cultural Center at 78 East Washington St. This event is free and open to the public. Don't miss it!
To listen to the podcast from this session click here!
