Don’t have enough to worry about?
Just when you thought it was safe to go into the water, up floats the issue of taxes and the artist visa.
First consideration: Who pays the taxes? Is it the foreigner, the sponsor or someone else?
Most U.S. income received by a foreigner (while on an artist visa), is subject to a U.S. tax rate of 30%.
If you’re lucky, there’s a tax treaty between your home country and the U.S. The U.S. has tax treaties which makes foreign artists exempt from U.S. income taxes – with certain limitations and income ceilings.
If you are eligible for an exemption, you must file Form 8233, “Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual.” See http://www.irs.gov/
This same Form 8233 is needed if your income comes through a foreign or U.S. management agent.
You’ll just love this form: On it you must list all the visa details from your passport for the last several years.
If you tour extensively – this can take forever.
More: You must include your social security number OR furnish a U.S. issued Individual Tax Identification Number (ITIN) on your tax return. An ITIN can be gotten by filing Form W-7. See http://www.irs.gov/
All of this is simply to ensure you can legally perform in the U.S.
OK, you thought it was difficult enough to put together all the support material. Remember that the tax issue is a minefield, or you can call it a ‘maze’, if you want to be polite…
COST CONSIDERATIONS
Take into account all of the following expenses when planning to come to the U.S. to perform (so there are no surprises.):
Grant applications;
Contract negotiation;
Planning ‘Artist in Residence’ events;
Renting technical gear;
Technical contract review, negotiation and adherence;
Marketing and promotion;
Reserving rehearsal time at venues;
Hiring page turners, piano technicians, etc.;
Designing programs, flyers, bios, etc.;
Lodging and meals; and/or
Travel to airports and local transportation.
Getting an artist visa is a big expense and so is putting your music out there for the public. Be practical!
Need more help?
Check out the following websites:
Artists From Abroad, part of the Association of Performing Arts Presenters. See http://www.artspresenters.org/
The American Symphony Orchestra League See http://www.americanorchestras.org/
United States Citizenship and Immigration Services See http://www.uscis.gov/
Internal Revenue Service See http://www.irs.gov/
NEXT WEEK: "Can't Call it Culturally Unique?"
Special thanks to Carlos Vega for his paintings that are featured on this blog.
14 comments:
How do I handle "contract negotiations?"
Best bet: Contact an entertainment attorney. I suggest Beigleman, Feiner & Feldman at http://www.bfflaw.com/.
Where do I find Form W-7?
It's on the IRS website listed in the blog. Enter 'Forms' in the 'Search' space.
Do I have to pay taxes on income NOT earned in the U.S.?
No. Still, check the tax treaty between your home country and the U.S.
How do I know if there's a tax treaty between the U.S. and my home country?
Check the IRS website. Enter 'tax treaties' in the 'search' space at the top of the IRS page.
Where can I find form Form 8233?
It's on the IRS webpage. Enter 'forms' in the 'search' space at the top of the page.
I lost my previous passport. How am I suppose to fill in the info about my travels on Form 8233?
You have yourself a problem. Use your memory as best you can to come up with a list of countries. Then write on the form at the end of the list: "To the best of my knowledge".
I thought I had a right to apply and get a social security number when I get the artist visa. True or not true?
True. It will say "For use with work authorization only." You can also use this number on your tax return.
Am I suppose to do the contract negotiation and review by myself?
Way better off with a lawyer. It's worth the money. You probably will save money when an attorney negotiates the contract - and you may get a better deal.
Thanks for the info. No one seems to know anything about taxes in the musician community (not that we earn so much...)
Can my spouse (on an O-3 visa), who is not authorized to work, get a social security number for tax purposes?
No. She'll have to apply for an ITIN, using Form W-7. Check the IRS website. Remember, this number does not give her the right to work.
Do the "page turners, piano technicians, etc." have to be union members?
For the piano technicians - yes, IATSE. For the page turners - no. Anybody else, check with the AFM.
Do you have any idea how much money I should put aside for all the "extra expenses"?
Not really. The sky's the limit. Compare prices and be an educated consumer.
I don't understand the reason I should pay taxes if I can't vote in the U.S. and I may not stay here long enough to collect social security benefits.
It's called taxation without representation.
How to I start looking for a grant? I really need the money.
Check the internet first. You might also call the AFM or the NEA and ask for advise on this. (Grant money is not taxed in the U.S.)
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