Radio Show Prep - Tax Tips for Radio Folks

Moving Expenses

Hey: You're in radio! Guess what? You move...and move....and move! Don't pass up deductions associated with your moves.

According to the Motley Fool website: "You can deduct the expenses for one trip (for you and your family) to the new home and for moving your furniture and household goods (see below), if you satisfy the minimum distance and period-of-employment requirements below. If you meet these two tests you will be able to deduct your moving expenses whether or not you itemize your deductions. That is, you can take an 'above the line' deduction and still receive benefits from your moving expenses, even if you don't itemize your deductions.

But there are TWO tests that you must pass before you can deduct your moving expenses: Distance test: The distance from your old residence to your new job location must be at least 50 miles more than the distance from your old residence to your old job location. Minimum period of employment test: As an employee, you must work full-time in the new general area for at least 39 weeks in the first 12 months after arrival there."

Talent Fees and Appearances

When you make an appearance, you usually have some expenses. If you're lucky, the station will reimburse you. If they're cheap bastards, you'll have to keep a good record of them so you can deduct them yourself.

Things you can deduct while on an appearance:

1. Mileage to and from the location based on the IRS standard mileage (or depreciation of the vehicle)

2. Meals you purchase while working

3. Any clothing you purchase exclusively for the appearance.

Remember: When you are paid by check and the client DOES NOT deduct any taxes, you will still be held liable for the taxes due. Don't let this extra money come up and bite you on the butt the day before April 15th. The IRS will expect you to include these appearance fees or talent fees under miscellaneous income on your 1040. When you do, the extra income will be figured into what you made this past year and what you previously payed.