I am a self employed magician/Entertainer and I made 5100.00. however, I also spent a lot on my equipment. I think I may have spent more than I made

[gallardoiiijack7]

I made 5100.00. it looks like I spent close to 7000.00 on apparatus and supplies.

[VolvoGirl · Accepted solution]

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  Or use any Desktop CD/Download program.

How to enter income from self employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[gallardoiiijack7]

2019 is the first year that I am trying my self employed business as a magician. I have been a professional magician for 38 years. However, 2019 is the first time I decided to perform private shows for the first time full time. I have contracts for birthday parties and weddings and a Christmas Eve show including some office parties and a halloween party.

[VolvoGirl]

Did you get W2s before?  Or did you get 1099Misc before?

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

FOR 2019

Here's a blank schedule C to see how it works

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

For 2019 Schedule C Net Profit or Loss goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[Opus 17]

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@gallardoiiijack7 wrote:

2019 is the first year that I am trying my self employed business as a magician. I have been a professional magician for 38 years. However, 2019 is the first time I decided to perform private shows for the first time full time. I have contracts for birthday parties and weddings and a Christmas Eve show including some office parties and a halloween party.

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I'm surprised if you have been a W-2 magician for 38 years.  That seems like an intinerant job where you would be self-employed.  Maybe you have been a W-2 employee on casinos and cruise ships and so on?

In any case, if you are self-employed, you are expected to keep accurate records of your income and expenses to file your tax return, even if you don't get tax paperwork from your customers or clients.  You shouldn't have to "guess" that you had a net loss this year.

Also, if you buy equipment and supplies that you also use for a W-2 job, you can't just expense them on your self-employment Schedule C. You have to allocate the cost based on the percentage of use at each job.