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1099-Misc Tax Write off Question

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  • 1099-Misc Tax Write off Question

    Hey all,

     

    First time poster, long time lurker. I have been filling out my tax stuff for the past week while on nights (PM&R is sweettttt), and I had a question that I couldnt find on the internet with a google search.

    My wife is a Worship Leader/Singer and this year sang at an Oktoberfest in our hometown. The business gave her a 1099-Misc for $1500. Of that money, she kept only 500 of it - the remaining went to her band (she pays real well!). As I am entering her 1099-Misc and subsequently the Business Income Schedule C form to attach it too, is there anyway that we can write off the "expense" of her band? Super poor PGY-2 here trying to get this refund high enough to afford a goldendoodle (those things are grossly expensive, but its the least I can do for delaying owning a home/moving twice for residency/etc). Thoughts?

  • #2
    Did she give them 1099's for the amounts to each person. That would be the way to write that off appropriately, though you could call it an expense, etc...If you didnt receive it I'd write it off, but I wouldnt be too excited without having written 1099s.

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    • #3
      Your wife deserves this.

      Yes, she can write off the payment to her band members. She is not required to give them a 1099 if the payment to any one person is not at least $600 per person. They are required to report the income, but it is not her responsibility whether they do or not.

      If she has $101 more in expenses, her income is not taxable for SE purposes, either. As in, mileage? Meals? Supplies?
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        The $400 is on Schedule SE not the net business profit on Schedule C. On Schedule SE the net business profit is reduced by multiplying by 0.9235. So a net business profit <= $432 will avoid SE tax. So she really only needs to find deductions >= $68.

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