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Thread: Hmm, I wonder if it's normal...

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    God/dess Jay12's Avatar
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    Default Hmm, I wonder if it's normal...

    This is the first year when I'm reporting the earnings I had made dancing (all the prior years had been earnings made on vanilla jobs). However, I was shocked to see that on top of not paying anything I'm getting back over 60% of the earnings I made. Is that supposed to be normal? I'm confused.

    I documented every single operational expense (clothes, make up, etc), and I have at home receipts (most purchases were made online) in case I get audited due to the ridiculous refund.

    Still, I find that really odd.





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    Default Re: Hmm, I wonder if it's normal...

    Allow me to ask a dumb question ... I assume that you are reporting your dancing earnings via Schedule C 'Profit or Loss from a Business', in conjunction with a 1040 'long form' tax return ?

    As an independent contractor 'self-employed' dancer, you cannot report your dancing earnings as wages ( they're actually business profits ), thus you cannot use any of the 'short forms'.

    If you are using a tax prep program, it needs to be the 'business' version that can do Schedule C.


    As to 'business expense' tax deductions, the IRS applies something referred to as a 'housewife test'. In order to be an indisputably valid business expense, the purchase cannot have been something which housewives would also purchase with absolutely no business reason for doing so. Department store makeup purchases typically fail the 'housewife test'. And while the IRS may accept / allow a business expense deduction for some percentage of the cost, attempting to claim 100% as a business expense ( thus 0% personal use ) is likely to attract an IRS audit.

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    God/dess Jay12's Avatar
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    Default Re: Hmm, I wonder if it's normal...

    Yes, I'm filing a loooooooong 1040: schedules A, C, SE, and also a 4137, 8880, 2106 and 8829.

    Things like make up and hair products? I only put that I use them about 65% of the time for business purposes (back in 2011 I spend about 600 dollars in make up, but I'm only reporting less than 400 dollars for business use).

    I am using tax slayer to do the templates, and then write down on paper forms the numbers on paper forms. I guess I'd do the whole job if I had stayed studying accounting hahahahaha (I switched majors in college due to emotional problems).





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    Banned Melonie's Avatar
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    Default Re: Hmm, I wonder if it's normal...

    ^^^ you're following the correct filing procedures ... and presumably your tax prep software is performing the right calculations.

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    Default Re: Hmm, I wonder if it's normal...

    Melonie, if she only spent 600 on hair product, etc, and her total dancing expenses were less than 5,800 $$, shouldn't she take the standard deduction then? B/c then she would have an even greater chance of attracting an IRS audit?

    SO, presumable, most dancers that dont travel dont spend 5800 on dancing expenses. So, it would be in the benefit of most dancers to take th 5800 instead of ITEM c?

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    Default Re: Hmm, I wonder if it's normal...

    ^^^ apples ( business expenses which must be listed on schedule C ) versus oranges ( standard deduction versus itemized personal deductions on the 1040 tax return form ). One has no effect on the other. The only exception would be a dancer working as an 'employee' of a club ( i.e. receiving a paycheck with taxes withheld ) who must then categorize whatever limited dancing expenses were allowable under 'employee business expenses' as itemized deductions.

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    God/dess Jay12's Avatar
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    Default Re: Hmm, I wonder if it's normal...

    OMG, I feel like you had saved my life!

    In the schedule C I am only reporting the amount that had been used for business use. Otherwise, it is not included. I am filing the schedule A due to the "vanilla jobs" (in which I also included the W-2 but that is a separate issue); schedules C and SE are for the dancing profits/loss.

    I'm mailing the forms today...and wait.





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