Hungry: Making a living from your art is hard. It’s called being a “hungry artist” for good reason. Due to the low pay most full-time performers receive, they are generally not in debt to the IRS. But did you know that you can turn the tables and get the IRS to pay you? Know the facts. Learn how you can use IRS rules to your advantage.

The business of art: clash between business and art. But if you want to save money, get organized and look at the facts. If you classify your art as a business, you can deduct the cost of your art supplies and business expenses.

Create a business record – the IRS will try to counter you at all times. But it will be hard for them to refute the fact that your art is in fact your business when you have a detailed business record. Keep track of everything. When you make business purchases, keep your receipts and record the date of the transaction. Then record the quantity and how it relates to your item.

Filing Your Return – This is where you report artist income/deductions

1040 or 1040-EZ
For reporting your income

Schedule C “Business Profit or Loss”
All miscellaneous income you receive must be reported on this form.

The problem: The IRS will try to classify your Art as a “hobby” instead of a business. And them may actually do this if you’re not careful, so pay attention. If you lose money in your art business for 2 years in a row, the IRS will consider your business a hobby. And then you will have to pay back the money you were paid in deductions! You’ll be a starving artist in debt to the IRS, and you know that can’t work out. Hopefully that will give you some incentive to succeed in the art world.

Now you have the smoking gun… Use it!