All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Valued Pioneer
Posts: 4
Registered: ‎02-23-2015

tax information for singers


Good afternoon,

I have a few questions. I m not sure if I could claim as a detucible expenses such as airline tickets, gas recipts, car rentals and hotel recipts for 2016 on our taxes . We do have a tx Id and although we didnt make alot of money. we have alot of expenses that came out. can I claim them and if so what form do I need to have. Look forward to hear from you

Associate (Pioneer)
Posts: 253
Registered: ‎01-08-2018

Re: tax information for singers

Hello peaches06,

Welcome to H&R Block Community.

According to the information you've provided, the tax rules state that if a taxpayer is in the business or has the intention to earn a profit off of singing, then any money received and expenses paid will be reported on Schedule C. Otherwise, if this singing activity was more as a side activity with no intention to make profit off of it, then it will be treated as a hobby where the hobby income is reported on line 21 of Form 1040 and the expenses will be reported on line 23 of Schedule A. Also, the amount of hobby expenses to claim for the hobby is only up to amount of hobby income. In other words, if hobby income was at $1,000, then hobby expenses to claim will be anywhere up to $1,000.

Furthermore, "The IRS presumes that an activity is carried on for profit if it makes a profit during at least three of the last five tax years, including the current year." Therefore, as long there is a profit in three of the last five years, then the singing activity income and expenses will be reported on Schedule C.

For the expenses that you mentioned, as long this singing activity has a for-profit motive, the airline tickets and hotel receipts will go on line 24a of Schedule C. For car rentals, that will go online line 20a of Schedule C. For the gas receipts, that will go on line 9 of Schedule C only if you are going to use the "actual expense" method on the business vehicle instead of the standard mileage method in deducting the vehicle expenses.

Also, you mentioned that these expenses are for 2016. If these expenses were paid in 2016, then it will go on 2016 return. If these were paid in 2017, then it will go on 2017 return.

If you have any other questions, I'll be glad to help.

Tax Research Specialist