How do I file my taxes as a musician (independent contractor) who received a 1099 for the total amount received for gigs I performed with another musician?

by Carlo J. Silvesti, CPA | Jan 21, 2019

I am an independent contractor, and I received a 1099 for the gigs I performed with another musician. I only got half of what is stated on the 1099. How should I report/file taxes? 

You received 1099s for the gigs you played. You shared the money with another musician who played with you. What you need to do is ask him for his Social Security number and prepare a 1099-MISC for his share. When you file your tax return, you will use Schedule C. You will put the amount of the 1099s you received as income, and under contract labor you will put the 1099 amount for the other musician. You will subtract the other musician’s 1099 from the total on the Schedule C. It will show your portion of the gig income. You will pay taxes on this amount. (also, remember to calculate your self-employment tax on schedule SE Social Security).  The following is an example:

1099 received for all your gigs                    $20,000

1099 issued to other performer                   $10,000

Your income                                                $10,000

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Answered by: Carlo J. Silvesti, CPA, is an assistant professor of accounting at Gwynedd Mercy University in Gwynedd Valley, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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