Before Tax Day on April 15, the South Carolina Department of Revenue launched tax tips for concert workers or independent contractors.
These workers can include people who earn an income through digital platforms, such as a website or application, writers, musicians and marketers. Individuals who provide services or rental goods also fall into this category.
To prepare for the tax season, SCDOR recommends that workers do the following:
- Keep good business expense and income records, as they can reduce tax collection, but check the rules for deducting expenses related to the use of things like the car or home.
- Workers who have another job where the employer withholds taxes from their paycheck can complete and submit a new Form W-4, which will allow them to request additional tax withholding on their paycheck to help cover any show work.
- If show work is their main revenue, they must make quarterly tax payment estimates to avoid having a large tax bill that they cannot pay and that can generate fines and interest.
For those who earn income from rented property, the IRS reminds taxpayers that the rent is fully taxable, and special rules apply to rented property also used as a residence, SCDOR said in a statement.
The agency’s statement also said that show workers must still declare their show income in a tax return, even if they are paid in cash or merchandise and cannot receive a W-2 or 1099.
In addition, when requesting tax returns from South Carolina, SCDOR recommends that taxpayers do the following:
- Choose online archiving and direct deposit for fast and accurate transactions.
- When submitting an income tax return, they must make sure that their current mailing address is included, even if they choose direct deposit for the refund.
- Register for free using SC Fillable Forms or other free online services that they can qualify for at dor.sc.gov/iit-filing.
For more information on preparing for Tax Day, visit IRS.gov.