I set myself us a "business" for just this purpose. I filed a Schedule C as a performance musician, and I wrote off every last cent I could, be it for new instruments, strings, gas to gigs, picks, REPAIRS (read: your new Rhodes) etc. Most DEFINITELY write off your CD duplication as business expense... I submitted a schedule E to keep any royalties earned separate.

Any other questions, write me.

Yes, file a Schedule C. I get paid for writing, speaking, and very occasionally playing music, and so I write off EVERYTHING that might possibly relate to these things--paper, printer cartridges, music equipment, miles traveling back and forth to a gig or a speaking engagement, etc. You should do exactly as Duncan says--just stick all the receipts someplace. I actually opened up a separate bank account that I clear all of my freelance expenses through--I pay for everything with that debit card. At the end of the year, I can just review the statements and add up all expenses and income. I keep this separate from my household account. Of course, this only works because I have a regular job as well, so all of my freelance money and expenses are "extra."

Schedule C's are easy to do (invest in Turbo Tax or some equivalent), though be warned that you have to pay Self-Employment tax as well (Turbo Tax and the like calculate this automatically for you).

No, you don't need a business name. Mine is my own name. You are registering with the state as part of this process of filing the sched C.

Booze= file under lubricants.

Good for you guys making enough money off of your performances to have to deal with taxes and shite. It's not easy to make money doing what you love, I commend you.

Yeah, that's what I'm trying to do. Shoulda been doing it all year though. Now I'm just trying to catch up! Thanks for the pointers.