Making money by picking up acting gigs that are steady or random will require you to pay a portion of your earnings to the IRS. Fortunately, you can get assistance with this obligation by utilizing an experienced CPA. We will even provide you with an actor tax deductions worksheet and help in ensuring you pay the correct amount and save as much as possible by answering questions like, “What can actors deduct on taxes?”
What Can Actors Write Off for Taxes?
After determining your filing status and working as a self-employed performer or for a business, you will probably want to look at specific aspects of your taxes that can help save you money. One of these areas involves taking actor tax deductions. Providing a service as a performer may allow you to deduct specific business expenses associated with your work. However, knowing the appropriate costs that one can claim is crucial if you want to stay legal when you file and not have the IRS knocking at your door to get more money. When you’re deducting business expenses, there are specific regulations you need to follow to help ensure you don’t violate the rules. The business expenses you take must be necessary and ordinary, meaning they are appropriate for your industry and commonly accepted.
Completing an Actor Tax Deductions Worksheet
Listing the business expenses associated with your acting gigs on an actor tax deduction worksheet can help you get organized and document the costs associated with your acting career. Specific categories and business expenses you’re able to write off may include the following:
- Professional Development: Deducting the cost of professional education, such as coaching lessons or acting classes, is permitted
- Studio and Rehearsal Fees: Including these expenses in actor tax deductions can be acceptable if they are used to hone your acting skills
- Professional Manager or Agent Fees: If you’re paying someone to represent you, you can use it as a deduction.
- Acting Portfolio: Paying for professional images and using them to get acting gigs is acceptable.
- Parking: If you’re paying for parking while you work, save the receipts and use them when completing your actor tax deductions worksheet.
- Business Cards: Having business cards designed and printed can be a marketing necessity for your career.
- Mileage: Using the mileage you drive between performances, rehearsals, and additions can also be used.
Actor Tax Deductions Worksheet
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As the formulas are already on the spreadsheet, you can use this document to calculate your business tax deductions!
When To Use Actor Tax Deductions
Including other actor tax deductions should be used with caution. For example, suppose you’re required to attend a film premiere for publicity, and you purchased a specific outfit for the photographs that will be taken. In that case, you can use this on your actor tax deductions as it is associated 100 percent with your work. Running into problems with the IRS typically occurs if you start deducting a significant amount of your clothing and claim it’s being used for business purposes. Expenses for personal hygiene is another category you probably shouldn’t list.
Do You Need More Help?
Planning your taxes and knowing what you can deduct can save you a considerable amount of money. Staying within the IRS regulations is also essential. Getting assistance with this task from an experienced accountant here at Fusion CPA may be highly advisable and helpful if you want to complete your tax forms correctly. Learning more about this process can be achieved by contacting us. We’d be happy to discuss your options, saving you time and money when filing. We offer high quality tax planning services and are happy to discuss your needs over a free discovery call by clicking the button below.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.