Touring musicians, who make money in multiple states each year, are responsible for filing multiple state tax returns due to their income and earnings estimates, which can lead them to fall behind if they don't pay quarterly taxes based on earnings estimates. Jamie Cheek, owner and business manager at Nashville-based FBMM, advises that artists who receive income from top promoters like Live Nation or AEG should report this income as self-employment tax on Schedule C. Sales, streaming and songwriting royalties are more straightforward, but artists can report from a single state rather than filing multiple tax returns. Cheek also advises caution in light of obscure tax nuances regarding royalties received through a record label, which are typically taxed federally as ordinary income at roughly 40%. If a songwriter owns master recordings and sells them to another company, the revenue is taxed as capital gains or at 20%.