100 Things Music Creators Can Deduct on Taxes
Oh, music taxes. Something every self-employed musician has to pay, but each one despises. Something some music creators (incl. musicians, producers, songwriters) fear and dread every spring. Well, I’ll be honest… I hate tax refunds, but I know others think of them as free gifts from the government. Regardless of your current relationship status with the IRS or your state, tax deductions are something you often think of before making purchases (and also when you’re trying to file at 11:59pm on April 14. I know, no one had to tell me).
Since I’m a music industry tax genius and all (I kid, I kid! No, but seriously I’m schooled in this stuff), musicians, recording studio owners, and indie record label execs ask me about tax deductions a lot. So, today I’ve dumped my brain into this list of tax deductions for music businesses. This list does NOT include everything you can deduct on your taxes for your music endeavors, but it certainly should give you a seriously good starting point.
Use the following list includes tax deductions for musicians, producers, songwriters, bands, recording studios and record labels.
If you:
- keep really good records of your finances +
- use this list & add your own in the comments +
- avoid these music tax myths
you could save hundreds if not a few thousand dollars in taxes, for real. Here we go!
P.S. If you want a PDF checklist of the tax deductions, we’ll send it to your e-mail now…
Music Business Tax Deductions
- Ads (Twitter, Instagram, Facebook, etc.)
- Car Insurance (15 minutes… you know the drill. More info on car insurance.)
- Fuel
- Tolls
- Parking
- Mileage
- EZPass or other fast pass for tolls
- Public transportation (for gigs, rehearsals, and meetings)
- Vehicle Repairs & Maintenance (tire patching, fluid flushes, windshield repair, etc.)
- Oil changes
- Washing and vacuuming your car
- Interest on Auto Loan
- Car or Truck
- Booking and Talent Agency Commissions
- Distributor commissions
- Band manager fees
- Amounts paid to bandmates, backup singers and accompanying musicians (send a 1099)
- Legal fees
- Music equipment
- Equipment insurance (here’s why you need insurance for your music equipment)
- Equipment repairs and maintenance
- Health, Vision, and Dental Insurance (you’ve got health insurance right?)
- Office supplies
- Studio or office rental
- Property insurance (aka renter’s or homeowner’s insurance)
- Real estate taxes
- Rental car for gigs, touring, and travel
- Instrument rental
- Instrument insurance
- Business Licenses
- Payroll Taxes
- Train tickets
- Baggage fees
- Plane tickets
- Bus Tickets
- Travel Insurance (here’s why travel insurance is necessary for touring)
- Hotel stays
- Cab fare and Uber rides
- Meals (while on travel)
- Refreshments (for studio guests and clients)
- Internet (aka Wi-Fi)
- Electricity
- Water bill
- Gas
- Tax preparation costs
- Cellphone (here’s some info on iPhone deductions for music)
- Phone plan
- Cellphone equipment insurance
- Apps, on apps, on apps! (there are apps that help manage the business side of music)
- Percentage of home (or apartment, condo, etc.)
- Paypal or Square fees
- Dropbox subscriptions
- Gifts to fans or customers
- Postage and delivery charges
- ATM fees
- Overdraft fees
- Wire transfer fees
- Cost of checks
- Merch design (t-shirts, posters, stickers, etc.)
- CD Duplication (don’t buy too many CD’s though)
- Cost of merch and CDs (after they’re sold or gifted)
- Recording costs (only half in the first year, find out more)
- Mixing & Mastering
- Album graphics
- Photoshoot
- Music or promo video
- Entertainment (like tickets to concerts)
- Showcase application fees
- Music Conference tickets (A3C, Driven, Future of Music, etc.)
- Retirement account contributions (Contributing enough to your after music retirement?)
- Student loan interest
- Tuition
- Value of property or cash given to charities (not services)
- Website design
- Website maintenance
- Website hosting (GoDaddy, Bluehost, etc.)
- Online services (Reverbnation, Soundcloud, Bandcamp, etc.)
- Portion of stolen gear, instruments, or equipment
- Electronic beats or sounds
- Accountant fees
- Cloud storage (like Dropbox)
- E-mail marketing (like Mailchimp)
- Accounting software (like Xero)
- Computer
- Printer/Scanner/Fax (combo or separately)
- Sheet music
- Business cards
- Studio or office furniture
- Union dues
- Music industry publications and magazine subscriptions
- Sample clearances
- E-mail service provider (Google Apps for Work or Outlook)
- Construction and renovation (for studio or office)
- Artwork (for office or studio)
- Salaries paid to assistant or receptionist
- Other supplies (like toilet paper, handsoap, and paper towels for the studio or office restroom)
- Business registration and annual fees
- Returns of CDs or Merch
- Cleaning and janitorial services
- ISRC registration
That ain’t it, there are more. What are some music business expenses that you’re writing off this year?
Photo by PopTech