Update: This applies to 2018 tax returns and further tax returns with years 2018 – 2025. Due to the Tax Cuts and Jobs Act, performers who receive W-2 statements, or who are recognized as employees can no longer deduct out-of-pocket job expenses. You will only be able to deduct expenses if you are filing a Schedule C as an actor/independent contractor.
As an actor, the last thing on your mind is taxes. After all, you have auditions to attend, scripts to memorize and practices to run off to.
Even if taxes fall last on your list of concerns, you’ll need to file a tax return between January and April each year.
The IRS considers actors and performers to be self-employed, meaning you’re required to report all income you earned on a business tax return. Sound confusing? PriorTax is here to help.
What You’ll Report on Your Taxes
- Income from Employed Work: This is for the steady job you have outside of acting. Your employer at this position most likely withheld taxes from your paychecks already, meaning you already pay tax on these earnings.
- Earnings from Acting, Performing, etc: You’re required to report any other earnings received, whether it be from acting, performing, doing voice-overs, etc. You’ll most likely still need to pay tax on your acting/ performing gigs since taxes weren’t withheld.
- Expenses Incurred: To lower your tax liability total, you’ll want to report as many deductible expenses as possible. The more deductions you can claim, the less you’ll end up paying to Uncle Sam.
Reporting Income from Employed Work
Let’s face it, if you’re living in New York City or Los Angeles, you need to work part-time to pay the (super expensive) rent. Whether you’re employed at Starbucks, folding shirts in retail or waiting tables at a local cafe, your paychecks may seem smaller than expected. Blame it on taxes.
Unlike income earned from your acting or performance work, your work as an employee is taxed before it’s handed off to you.
At the end of the year, you’ll receive a W-2 form from your employer. On this form, you’ll notice the amount you were paid over the year along with the total amount of taxes withheld from your pay. You’ll need to report this information on your tax return.
Reporting Earnings from Acting or Performing
If you receive a Form 1099-MISC:
In January, you may or may not receive a Form 1099-MISC. On this form, the income you earned from a specific job will be listed. You’ll need to save these forms and enter the listed information on your tax return.
If you don’t receive a Form 1099-MISC:
Not receiving a Form 1099-MISC doesn’t mean you’re off the hook from filing a tax return. The IRS requires you to report ALL income earned. In other words, if you were paid in cash for a specific job, you’ll need to report that amount on your taxes in addition to any other income received.
If you’re working multiple jobs throughout the year, it’s a good idea to write down the amount you were paid for each. Then, when it comes time to file your taxes, you won’t waste time.
Expenses You’ll Be Able to Deduct
As an actor, you’re allowed to write off tax deductions for expenses you incurred over the year that relate to your acting and performing career. Also, keep in mind the following;
- you’ll only be able to report expenses up to the acting income you’ve earned
- be sure to save all receipts related to acting or performing expenses incurred
What exactly is considered tax deductible for actors? According to the IRS, as an actor, you may deduct any expenses that meet the following criteria:
- the cost is directly related to the acting activity
- the cost is ordinary and necessary
- the cost is not lavish or extravagant under the circumstances
That $100 you spent to see Jersey Boys on Broadway last week, yup, it’s deductible and considered an “educational expense”. Below, are other examples of deductible expenses that may apply to you:
- travel expenses to and from auditions, rehearsals, classes, & performances (such as subway fares, plane tickets, car mileage)
- vehicle expenses (gas, repairs, and insurance)
- acting, voice & dance classes
- workshops & seminars
- costumes used only for business use (including dry cleaning expenses)
- makeup, hair & nails (initial charge is deductible, maintenance costs are not)
- show & concert tickets
- DVDs & videos
- union dues
- theater company dues
- commissions paid to agents
- legal & professional fees
- acting books, magazines
- headshots (including photographer fees)
- resume (printing costs)
- mailing expenses
- office expenses
- equipment
- home office or studio
- business use of cell phone, internet, and cable (your primary phone is not deductible)
- online submission costs
*Please note that all expenses that you deduct MUST pertain to the role/part you are hired for.
Save Receipts to Save Time & Money!
Although leaving receipts laying around your tiny NYC apartment may be easiest, staying organized will pay off. Whether it’s a receipt app on your phone or just throwing them in a shoe box, create a system that works for you.
It may be the first time you’re filing or you may have filed before and ended up handing over a wad of cash to an accountant. Whatever the case may be, don’t waste the time or money again this year. File your taxes online for a portion of the price of going to a tax accountant. The best part, the PriorTax site is user-friendly allowing you to quickly complete your return!
There’s Broadway shows waiting for you to attend and perform in, don’t waste your time and money on a tax return. Instead, use PriorTax!
Photo via Darren Johnson on Flickr
How does an actor on location for a long period of time file a tax return? For instance half way around the world.
Hi Steven,
You’ll still follow the same basic guidelines discussed in the article above. Since foreign income needs to be reported on your U.S. tax return along with any income earned in the states, you’ll need to file based on the document you receive from your employer at the time. Once you receive your income documentation, feel free to give our tax team a call for assistance.
Best advice for someone working their way up
If I’m an actress, and it’s my main focus, but I’ve been earning my living waitressing, can I deduct expenses for going to film festivals, plane tickets to shoot a film, acting classes and subscriptions to submission sites even if I haven’t been paid more than $150 for projects this year?
Hi Rachel,
Actors are typically treated as independent contractors (income is reported on 1099) instead of employees (income is reported on W-2). This means that for tax purposes, acting is a business. A self-employed actor may deduct expenses that are:
– directly related to the acting activity
– ordinary and necessary
– not lavish or extravagant (under the circumstances presented)
That being said, the expenses you have incurred seem to all be well within the bounds set by the IRS. Just be sure that you have receipts/documentation to back up your expenses.
Super information. Thank you for sharing.
A couple of questions:
Do these deductions apply to voice over actors as well? Specifically, can training to become a voice-over actor be deducted, working with a coach, or attending classes?
Do you have to pay quarterly taxes if you don’t earn any income during that quarter?
Thank you so much.
Hello Janice,
Thank you for reaching out to us. Your voice acting training classes can definitely be deducted since the cost is directly related to your acting activity. According to the IRS, if you did not have a tax liability for the prior year your total tax was zero, you are not obligated to file an income tax return or pay quarterly tax. At Prior Tax, we will work with you to ensure your expenses can be deemed as qualified expenses. You may go to priortax.com to get started as we have options for Actors and Performers.
My agent sent my tax return with his commission included. Do I pay taxes on his commission? Thank you!
I am assuming he did not include his commission as taxable income. However, your tax preparation fees were probably reported as an itemized deduction on your return. The IRS allows you to deduct your tax preparation fees in the year you pay them.
I have a few questions:
Please forgive me if some are stupid:
1. How can I put in the costs of relocation from one city to the other? can that include buying new furniture, etc
2. is it better to file “married conjointly?” my wife doesn’t work but she goes to college
3. would fees for education for my daughter (pre school) be deductible? could that include swim and gymnastic classes?
4. As a performer I am having a very specific diet and follow a strict regimen of physical activity, can i deduct costs for grocery and gym membership?
5. In filing the payment I received I have many things like “acting, speaking engagement, standup, etc” my expenses, whether that be hotels, travel, acting classes, etc, are all helpful in ALL of these jobs, meaning there is not one job that could be separated from the the other concerning the expenses, how can I file expenses?
The IRS allows you to deduct your moving expenses if you moved due to a change in your job or business location, or started a new job or business. Please refer to the following Moving Expenses IRS publication for more information regarding which moving expense are considered deductible.
Unless you have a specific reason to file separate returns, it is usually better to file Jointly. Married Filing Jointly has the lowest tax rates and the highest Standard Deduction. If your wife has a past tax debt with the IRS, then you may want to file separate returns, or consider filing as injured spouse so avoid being liable for her tax debts.
The IRS allows you to get a credit for your childcare expenses which includes money you might have paid for preschool. There is however a limit to this credit which is up to $6000 for two or more dependents.
You can deduct expenses associated with weight loss if your physician prescribed you to enroll in a weight loss program for medical reasons. Although, you are a performer and may argue that staying in shape makes you more marketable and you should be granted a deduction for your gym fees. The IRS does not allow this since they consider fitness workouts to be personal expenses.
If you received 1099-MISC income statements for your performing arts business, you can report this income on a Schedule C and deduct all of your qualified business expenses (that you have receipts for) on this form. You can consolidate your expenses once they pertain to the same category of business. Priortax expertly prepares returns for performing artists. Click here to get started today!
I’m an actor paid w-2 wages. Can I still deduct expenses related to my acting work such as travel, lodging, commissions, etc. as unreimbursed employee expenses?
Yes, if you are an actor and received W-2 income, you are entitled to deduct your qualified un-reimbursed job expenses. This information is prepared on a Form 2106. As a performing artist you are allowed under certain conditions to claim some of your business expenses as special, above the line deductions. These deductions directly reduce the total income upon which you are taxed. Priortax can prepare your return with the inclusion of your 2106 and Special deductions. Click here to get started today!
Hi,
I was looking for more information on transportation deductions. My tax preparer told me that I can’t deduct travel expenses for commuting to and from auditions unless I was commuting FROM my full time job TO the audition. He said any commuting I did from my home directly to an audition doesn’t count, because my acting business doesn’t have an exact address. I commute from NJ to NY. Is this accurate? I owe taxes this year, so I want to make sure I didn’t miss any deductions.
Hello Sade,
I would follow the advice of your tax preparer. Typically, income received for preforming arts would be reported on a Schedule C, if you did not receive a W-2 statement. If your income is being reported on a Schedule C, your self employment expenses need to relate to your earned income. Since the details of your employment are not specified, auditions would be most likely qualified as job search costs. Job search costs are treated as itemized deductions and are not recorded on your self employment schedule. Feel free to utilize our CPA services to ensure that your expenses are recorded according to IRS publications.
Can you believe the IRS actually wants verification of every audition I was on in 2013? Like walk in with a slip and ask them to sign that I was there. Heck, sometimes we audition various times per day and then you have this person asking for me to verify each one from 2013. That can’t be legal.
Of course it’s legal. The burden of proof to write off ANY expense falls on the taxpayer. There is a TON of bad advice out there for actors (like this writing off DVD and netflix rental business). Surefire way to get audited and get all your expenses disallowed at an audit. Want to not get audited? be realistic. Only write off things “ordinary and necessary”
My question is this. I booked a union job and they had me fill out a W-4 for and issued a W-2. Is this going to disqualify me from using a Schedule C to claim my expense for auditions (mileage, taping costs, coaching), training, workshops, industry related books, headshots (photo sessions and prints), etc.?
Within our website we have a section designed specifically for our clients to report W-2 job expenses. As long as they are considered qualified by the IRS, not much has changed from your reporting from a Schedule C over to your Schedule A. If you do need assistance, you can always contact us through our live support system or give us a call.
Do you have to file as a business in every state and pay taxes to every state?
Hello Julie,
As an actor or performer, you will need to file a Schedule C since you are deemed to be self-employed, unless, you receive a W-2 statement. If you are using a Schedule C and do not receive a 1099-MISC statement at the end of the tax year, you will still need to record your income on a Schedule C. For the income earned and taxes paid in specific states, you will then need to file a state return. If you earn income and are taxed in other states, you will need to file a non-resident state return.
I am an actor (as well as musician), so I’m assuming things would work pretty much the same across the board for bkth, but my question is:
As a musician (specifically singer), part of my expenses are the costs associated with crafting a demo: having a track made, studio costs, mixing, mastering, etc. Costs of that nature should be eligible to be written off, correct?
If the expense is necessary for your employment and it is work-related, the expenses can be deducted. The ones that you have listed off are expenses related to your music career, so yes they are deductible. However, reporting expenses that you do not have proper documentation for like receipts are unadvisable.
Hi,
My husband is a commercial actor, so he has multiple jobs per year. I am a homemaker (no income, 2kids). We owe taxes every year…..we currently claim 2… Looks as if some payroll companies arent taking out enough taxes…..should we put different deductions depending on the job? Should we just claim 0 or 1 across the board? What is the solution for an actor with multiple jobs of different income levels?
You can use the IRS withholding calculator to help you determine how many allowances you should claim on your W-4 Form. Click here to try the IRS Withholding Calculator.
First of all, please take this with a grain of salt as this is not a criticism and I’m sure your intentions are well-placed.
Most of the information you have provided RE: an actor receiving 1099s is incorrect.
I have been earning an annual living as an Actor regularly for 20 years on both coasts Los Angeles and New York,;and not once, NOT ONCE, has my Acting Income been reported to me on a 1099 leading me to file a Schedule C.
This is barring two rare occasions where I have purposely asked to be treated as a ‘Corporation’ (aka “Inc”) in order to reap tax benefits of larger payments – I have then received payment for services rendered, lump sum to pay taxes on myself.
In EVERY other case, I have always received a W-2 either from the Studio directly or from a Payroll company employed by the Production. In my case I usually end up with 12-13 multiple W2s every year with no 1099s at all.
Really really wanted to clarify this very common misperception for Tax-Preparers such as yourselves, which I have repeatedly been running across. I have serious doubts that the majority of actors out there are getting 1099s for acting jobs and if so I have absolutely no idea who they’re working for, as this is certainly NOT the norm.
This brings me to my actual question which is how I found this page:
As an Actor earning income from multiple employers and receiving multiple W-2s – What am I? – Am I considered Self-Employed because the rest of the world seems to think so, even if the IRS does not nor do they treat me as such. This dilemma always arises when renting apartments or opening Retirement Savings accounts such as a traditional/roth IRA as opposed to a SEP (which is only for 1099 income).
Thanks for your clarification on this, and hope I have helped some other Actors out there.
My kids have been acting for years and never received a 1099 either, but we got one for last year because he did some acting work in YouTube videos which weren’t covered by SAG, and they studio sent the checks directly to his agent. The agency issued a 1099 for all the money he made for the entire year, and we had to file a Schedule C.
Then where did you put your deductions like for acting classes etc if you didn’t file a sched c, directly on the schedule a?
Thanks!
Can you file things like joining Actors Access (ShowFax) ?
Thank you
Yes we can prepare your tax return for you.
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be updated on a regular basis. It carries good stuff.
A juggler does his act at many state fairs and cruise ships throughout the year. All of his income is reported on 1099MISC forms. His income and expenses is reported on a Schedule C. Does he have to file state tax forms with every state where he performed if they have a state income tax? I realize all has to be reported to NY, his state of residency. In some states he only earned a few hundred dollars.
It is dependent on the amount of income that the juggler earned in each respective state. If they did not earn income over the taxable amount, which you will need to determine, a non-resident return state filing wouldn’t be necessary.
In order to deduct certain expenses as an actor, do I need to be registered as a Sole Proprieter with a bank or credit union, or will the money I’ve spent from my personal checking account qualify?
I have a question. I am new to the acting field and I have not earned an income as of yet. However I have spent hundreds of dollars on acting courses, headshots, etc to prepare me for my field. Can I write these expenses off although I have not earned an income from acting as of yet? I have documentation of my expenses.
I am working as a cowboy actor and need to bring my own horse. Can I deduct the horse expenses, such as transportation and feed? Is there a per diem I can deduct just for the horse?
Hi there,
I’m a long time actor but this is the first year I plan to take itemized deductions for my acting business. I have a question about this particular rule from your article:
“you’ll only be able to report expenses up to the acting income you’ve earned”
So lets say this year I made $45k total between acting gigs and my side job (bartending) BUT only say $600 of that came from acting gigs (it’s been a tough year). Does that really mean I can only claim up to $600 in acting expenses even though I’ve spent a few thousand this year?
Thanks in advance for the clarification!
Julie,
You can deduct expenses for your acting job if you have documentation for each qualifying expense.
Hello, my daughter is a child actress and qualifies as a performing artist. She had a lot of acting expenses including travel, hotel and meals that we had to cover, where would we place this or which forms would we include if she is doing her own tax return? Or can we place it on ours since she cant drive or transport self?
Thank you,
Ana
Hi,
My son is 11 and has started acting January of this year (2018), we’ve signed with a manager and Agent in California but we haven’t booked very much so he hasn’t made any money this year. We live in Arizona and we’ve had to travel to CA for auditions, pay for acting classes every week, head shots and subscriptions such as actors access. Even though he hasn’t made any money as of yet, can we still file taxes to write off those deductibles?
Hi Krystal,
You can receive an above the line deduction called the “Qualified Performing Artists Tax Deduction” if you have an adjusted gross income of less than $16,000, services were provided to two or more employers, receiving $200 or more in wages from each employer, and your job-related expenses are more than 10% of your income from acting jobs.
If you are going to file a 2018 tax return, due to the Tax Cuts and Jobs Act, actors who receive W2 statements (employees) can no longer deduct out-of-pocket job expenses from 2018 – 2025. Your expenses can only be deducted if you file a Schedule C and fit the criteria of a business.
I’ve been singer/actor for 5 years, haing a restaurant job, and fIled taxes as self employed I do gigs for cash, 1099 gigs and W-2 gigs. However last year, 2021, I did very few performing gigs. Can I still file as self employed and right off my headshots, concert tickets, etc?
I have read this article and it contains a lot of information and is also very accurate. Thanks to the writer of this article for sharing knowledge with us.