For 2019 our songs that were distributed to streaming platforms by Songtradr and our 25 sync licensed songs via Songtradr actually earned us some money. Being old and a pensioner this is the first earned income we had in many a year. Songtradr collects no tax info on members so how do I report this? Is there a quick and easy way to do it? The amount of money we spend on music production software would exceed the income but I have zero interest in getting into something complicated. We're only looking at a couple hundred bucks.

Thanks,

Bud

If you are a business then file a Schedule C. This allows you to offset your income with music production-related expenses, which you cannot otherwise deduct. You need to show a profit in 3 out of 5 years, and act in other ways like you are a business. It’s more complicated than this, but there is a start.

Thanks Matt

As mentioned, I'm but a retired old phart on a government pension. No business. And no intent of creating a LLC or any other entity.

We owned a bike/kayak shop 20 years ago. That was enough for us.

Almost makes me wish I had not earned it

Bud

Haha, don't worry about it. As the resident tax guy, legally you have to report all income no matter what ASSUMING you have a filing requirement in the first place. If you have no intention to do this as a profit making business just throw a couple hun as Other Income, forget a Sch C.

Depending on your total taxable earnings there may not be any tax on it anyway but you at least reported it. If you don't have a filing requirement then a few hundred won't make any difference to that calculation and even if it does, nobody's coming after you for $10-20 in tax. Add a zero to that number, it could be a different story.

Having said that, I know nothing about your situation. For all I know you have a 200K AGI from pensions, investments, rental properties or whatever. In that case yes, definitely include it as Other Income. If you already have a Sch C for something else I would just add it to that Sch C's income. It's not technically correct but you did your duty and included the income. I wouldn't create a new Sch C over two hundred bucks and trust me the IRS doesn't care either.

Bob

Thank you Bob. That was very helpful.

Our tax scenario is simple with income consisting of my pension, SS and a couple of tanked IRA‘s - zero debt and the standard deduction. AGI is relatively modest. We’ll add it to “Other” and trust that The feds make good use of the 20 bucks

Appreciate it.

Bud

A few years ago I was teaching part time and the rule then was if the total amount made was less than $600 all you do is list that amount on your tax form. $600 or more you had to fill out an extra form.

The safest way is to ask a local tax accountant as state tax laws very from state to state.

Thanks Mario, folks my age don't pay state taxes in GA

I located this and it seems to address my issue and your prior situation. This does not vary from what Bob has already pointed out.

"Unless the income is considered a gift, you need to report all income that is subject to US taxation on your tax return. The $600 limit is just the IRS requirement for Form 1099-MISC to be considered necessary to file by the payer.
You will report this income as other miscellaneous income on line 21 of your 1040. This income will not be subject to self-employment taxes."

Bud

It's unbelievable, but it really does happen in our world. I think the best option is to get help from ThePayStubs, which I recently found. I haven't been able to find out all the benefits of this tool yet, but I found it to be a very important tool that helps me collect all my statements and tax receipts in one place. I'm sure it will be an interesting experience for you as well because you can find many effective and efficient features in it.