PLEASE NOTE: the 2017 TCJA tax bill now disallows all employee business expenses on Form 2106 except for the rare performers that qualify under the QPA (Qualified Performing Artist). This means that a performer with BOTH W-2 and self-employment income will only be able to deduct those expenses associated with their self-employment income:Įxpenses no longer deductible starting in 2018 The performer may also have extensive W-2 income (this is the case with Equity actors) that will often have extensive expenses that sadly are no longer deductible starting in 2018 under the 2017 TCJA tax bill. The self-employed performer will also usually be required to pay estimated quarterly taxes on Form 1040-ES (if the tax liability is to exceed $1,000). All these forms are part of the year-end 1040 income tax filing. The performer may also file form 8829 for the home office deduction and will be required to pay self-employment tax (Schedule SE) on their net income (profit) as well as federal income tax. In this case the performer will file a "Schedule C" as part of their regular 1040 income tax form (this is where you report all the 1099's you received last year). There is no legal separation such as one would have in a corporation or other legal entity. In a legal and taxpaying sense this means that your "business" as a performer and you as an individual taxpayer are one and the same. Many working performers are considered "self-employed" regarding filing their taxes. In so doing you will pay less in taxes and you will be less likely to fall prey to erroneous tax information and disreputable advisors.
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I often use the analogy that you may not need to know how to fix your car but it is helpful to know how it basically works. The secret to overcoming this phobia is to develop an understanding of the mechanisms of the tax code and some simple, effective ways of complying with this onerous task.
Many performers tend to avoid the whole matter and consequently leave themselves vulnerable to bad advice. The artistic temperament simply does not interface well with the exacting rule-filled world of federal and state taxation. Taxes and administrating their business are often last on the list of concerns for the actors and performers.
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Download our expense checklist for actors PDF Versionĭownload our expense checklist for actors Excel Worksheet Versionĭownload our income worksheet for actors PDF Versionĭownload our income worksheet for actors Excel Worksheet Versionĭownload our 12 month expense worksheet for actors Excel Worksheet VersionĬlick here for Actor's Sample Tax Return from THE NEW TAX GUIDE FOR WRITERS, ARTISTS, PERFORMERS & OTHER CREATIVE PEOPLEĪctors, performing artists and taxes often don't seem to mix very well.
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