Tax Deductions For Actors

It's that time of year! Tax season is here and everyone is trying to take deductions off their taxes in an effort to save money.  Not sure what deductions you can claim if you're an actor? Here's some tips to help you save money and perhaps even get a refund this year.

The first thing to remember is that actors are often considered "independent contractors" and not employees. For the purpose of your taxes, acting is your line of work/your business. As such, a self-employed actor can deduct expenses that are directly related to acting activities and are not extravagant when it comes to properly doing their work. In other words, the deduction must be deemed to be ordinary and necessary in the eyes of the IRS.

Some actors try to deduct everyday items like clothing, hair, makeup and gym memberships on their taxes. This is a very fine line to walk for many people because the use of the above items must be clearly defined by the actor. For instance, makeup for a photo session or a stage play can be deducted but not makeup bought for use during a normal day. Clothing is always an area that needs to be handled with caution. Even if an outfit was bought for an audition, clothes that can be worn to lunch or to the beach are not considered tax deductible. A gym membership is rarely deductible because it is considered exercise and not "research" or "training".

There are some items that count as "research". Some examples include movies, magazine subscriptions and books that keep you up-to-date on your profession. Movie tickets can count as research for your profession as well as some (or all) of your cable, Netflix and Hulu subscriptions.

How much money did you pay to your agent and manager last year? Any fees paid to your representatives or a PR firm are marked as business expenses. However, you do need to provide statements showing your payments as well as examples of the services they provided. Also, any fees you paid for acting classes, private sessions and casting director workshops can be deducted.

Be sure and keep a mileage book in your car as driving to auditions, agent and manager meetings, classes, rehearsals and paid acting jobs can all be counted as business trips. Also, traveling out of town for work can include some deductions. The expenses that only happen due to being away from home for the night can be deducted.

Did you mail anything career related last year? Expenses from Fed Ex, UPS and the Post Office that were a result of mailing resumes and headshots can all be deducted.

Speaking of resumes and headshots...Those two items along with postcards and fees charged by sites like LA Casting can all be classified as "promotional expenses" and can be deducted from your taxes.

Any acting union dues you pay are tax deductible.

Finally, doing business on your phone can be written off on your taxes. Making business calls as well as buying a new phone can be tax deductions if you have the proper paperwork to show how you used them for business.

I hope the examples listed above help you save some money. Take the money you saved and put it towards new headshots or a publicist and make this the best year of your career!

This actor just finished his taxes.