Tax Tips for Songwriters and Musicians
Tax Help for Musicians
Being a musician isn’t just about the gigs, the late nights, or the hours spent perfecting your craft. It’s also about running your music career like a business—and that means taxes. Whether you’re a weekend performer or a full-time touring artist, understanding tax rules can save you money and headaches. Here are some of the key areas musicians should know.
Per Diem Tracking
When you’re on the road, meals and incidental expenses add up quickly. The IRS allows musicians to deduct these costs using a per diem rate instead of keeping every receipt. The per diem is a flat daily amount based on the city you travel to, making it easier to track and justify your expenses. Keep a simple log of:
Date and location of each trip
Purpose of travel (performance, recording, rehearsal)
Nights stayed
This record helps you maximize deductions while keeping your bookkeeping clean.
Mileage Deductions
If you’re driving to gigs, recording sessions, or rehearsals, you can deduct mileage. The IRS sets a standard mileage rate each year. To claim it, you’ll need to keep a mileage log that includes:
Starting and ending mileage
Date of the trip
Business purpose
Apps like MileIQ or a good old notebook in your glovebox will do the trick. Just don’t try to estimate—it needs to be exact to hold up if ever questioned.
Gear and Equipment Purchases
Musical instruments, sound equipment, amps, software, and even stage clothes (if they’re not suitable for everyday wear) may be deductible. The IRS lets you either:
Deduct the cost in the year purchased (under Section 179 for certain limits), or
Depreciate the cost over several years for big-ticket items.
Keep all receipts and note whether the purchase is strictly for business use. That new pedal board or mixing software isn’t just gear—it’s a business asset.
How Schedule C Works
Most musicians operate as sole proprietors, which means you’ll report your income and expenses on Schedule C (Profit or Loss From Business) as part of your personal tax return. On Schedule C, you’ll:
Report all income from gigs, streaming, merchandise sales, and lessons
Deduct business expenses (like per diem, mileage, gear, and studio rental)
Calculate net profit or loss
Your net profit is what gets taxed for both income tax and self-employment tax (Social Security and Medicare).
The good news? If your expenses exceed your income, you may be able to offset other income and reduce your overall tax bill.
Final Note
Taxes may not be as exciting as playing a sold-out show, but they’re an essential part of building a sustainable music career. By tracking your per diem, mileage, gear, and reporting properly on Schedule C, you’ll keep more money in your pocket and avoid nasty surprises from the IRS.