Deductions for Actors
As seen on Nolo.com
Earning a living as an actor has always been tough. Unfortunately, due to the Tax Cuts and Jobs Act (HR 1, “TCJA”), it’s going to get even tougher. One of the provisions in the massive tax bill enacted by Congress will make it impossible for professional actors classified as employees to deduct their job-related expenses from their taxes. As a result, many actors, particularly those classified as employees instead of independent contractors, will end up paying more tax.
Deductions for Actors
Prior to the enactment of the TCJA, any ordinary and necessary expenses that actors paid for out of their own pockets that were directly related to their acting activity were deductible. If you were an employee-actor, you deducted the expense as an unreimbursed employee expense. Independent contractors deducted the costs as a business expense.
Typical deductible expenses for actors include, but are not limited to, the following:
Business Travel: Airfare or other transportation costs and hotel or other lodging expenses, and 50% of the cost of meals.
Local Travel Expenses: Deductible local travel may include trips to performances (both as player and observer), rehearsals, acting classes, auditions, and to pick up supplies.
Agent Fees: All fees an actor pays to an agent.
Manager Fees: Talent manger fees.
Office Expenses: An outside office or office in the home used exclusively for an acting business.
Property and Supplies Used for Acting: The cost of video cameras, sound equipment, digital cameras, sound equipment, theater and film books, musical scores, computers, and cell phones.
Union Dues: Dues to belong to Actors Equity or other unions or organizations.
Education: Acting classes and coaching lessons.
Promotional expenses: Photos, videos, websites (including Internet connection costs), listings in professional registries, advertisements in trade publications, business cards, and other promotional expenses
