Those who make a living from temporary or part-time jobs may have a hard time understanding what to do with taxes.
Concert workers, also known as independent contractors, generally earn their income through digital platforms, such as an application or website. They can include musicians, writers, traders, consultants, hitchhiking drivers and those providing services or rental goods.
The South Carolina Department of Revenue (SCDOR) reminds show workers that you must still report your show income in a tax return, even if you are paid in cash or merchandise and cannot receive a W-2 or 1099 .
Examples of show work include:
- Driving a car for travel or reserved deliveries
- Renting a property
- Selling products online
- Provision of creative or professional services
Note: This list does not include all types of show work.
According to the IRS, show workers are generally required to pay:
- Income tax
- Federal insurance contribution law or tax of the Self-employment contribution law
- Additional Medicare Taxes
Here are some tax tips for concert workers:
- Keep good records of business income and expenses. Deductions can lower your tax bill, but must be supported by records. Check the rules for deducting expenses related to the use of things like your car or home.
- Giant economy workers who have another job where the employer withholds taxes from their paycheck can complete and submit a new W-4 form. Do this to request additional tax withholding on your paycheck to help cover your concert work.
- If your job is your primary income, you must make quarterly tax payment estimates. You do this to pay your taxes and any self-employment taxes owed throughout the year. Failing to make quarterly payments can mean a large bill that you cannot pay and can generate fines and interest.
In addition, for those who earn rent income, the IRS reminds taxpayers that this income is fully taxable and that special rules apply to rental properties also used as a residence.
Other filing tips to remember for returns in South Carolina:
- Choose online archiving and direct deposit for fast and accurate transactions.
- When submitting your income tax return, make sure that your current mailing address is included, even if you choose direct deposit for refund.
- Register for free using SC Fillable Forms or other free online services that you can qualify for at dor.sc.gov/iit-filing.
For more information on gig savings, visit IRS.gov.