The Ides of March are coming and those of us whose money came to them in a “Miscellaneous Income” format are hurrying to make sure we don’t owe an arm, a leg, and our first born child. If you spent all of last year working in non-profit theatre settings and are claiming whole lot of un-taxed income, we have some good news for you. Read today’s Broadway Educator’s blog and educate yourself on your earnings.
All That Money
The great thing about being self-employed is that you can claim a whole lot. From food you purchased on the job to all the interest you paid on your student loans…you just have to know what to hold on to! For me, I save a bunch of receipts. When I buy crafts for my acting classes, printer ink, printer paper, new headshots, Facebook ads, a new computer, a website domain, or any material that would help with the progress of myself as a business, I keep the receipt. These items are deducted from the overall amount that you earned that year.
Another thing you can deduct is your rent and utilities if you happen to be a renter. However, you need to actually have a workspace that is secluded and separate from all other areas of your home. Your office space can only be used for that, otherwise it doesn’t count. My apartment is about 650 square feet and my office is about 100 square feet of that area. That means I can claim 100/650ths or 15% of my rent as a deduction. Since I heat, use electricity, and pay for WiFi in that 15% of space, I can claim my utilities as well!
Transportation
If you are a Broadway Educator with a vehicle that you use to get to your classes, write down your mileage! From my home to my voice studio, it is 45 miles there and back. I made the journey 4 times a week within a 16-week semester and there were two full semesters last year, as well as 9-weeks in the summer when I taught once a week. Altogether, that was over 6100 miles! The government allows you to claim 57 cents for each mile traveled. That would mean that I could claim about $3400 right there!
Where To Find a Tax Person
The best choice for creative workers to make on getting taxes done is in choosing a tax representative. You need someone who understands his/her way about self-employment. I hire a CPA who once worked with me in an Arts Admin atmosphere! Since we know each other from that office, he gave me a great deal on consultations. So you can network yourself for tax help and ask your other creative friends who they go. Networking never ends for people like us…
ONE LAST TIP: If you donated your time to any non-profit fundraisers last year, tally up the hours you think you spent. Contact an admin from the organization, ask for an official document on their letterhead with your volunteer hours, and save it with your tax info. If you had charged the organization as a performer/educator for your work, calculate how much it would have been, and deduct that from your total earnings as well!