By 
Starving – it’s hard to earn a living from your art. It’s called being a “starving artist” for good reason. Due to the meager salary that most full-time artists receive, they generally do not have debt with the IRS. But did you know that you can turn the tables and get paid by the IRS? Know the facts. Learn how you can use the IRS rules to your advantage.
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 this at all times. But it will be difficult for them to disprove the fact that your art is really your business when you have a detailed business record. Keep a record of everything. When making business purchases, save your receipts and record the date of the transaction. Then record the amount and how it relates to your art.
File your return – this is where to report artist income / deductions
1040 or 1040-EZ
To report your income
Exhibit C “Business Gains or Losses”
All miscellaneous income you receive must be reported on this form.
The catch: The IRS will try to classify your art as a “hobby” rather than a business. And them can 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 they paid you in deductions! You’ll be a starving artist in debt to the IRS, and you know that can’t go right. Hopefully that will give you some incentive to succeed in the art world.
Now you have the smoking gun … use it!