- Self-employed actors can deduct expenses directly related to acting activities that are not viewed as "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 makeup and a gym membership on their taxes. However, the use of these items must be clearly defined by the actor. For example, makeup for a photo session or a stage play can be deducted but makeup bought for use during a normal day cannot be deducted. A gym membership is rarely deductible because it is considered exercise and not "research" or "training".
- Clothing is also an area to be handled with caution. An outfit bought for an audition can fall into the deduction category but clothes bought to wear to lunch or the beach are not considered tax deductible.
- Items that might count for "research purchases" include magazine subscriptions and books for the purpose of staying up to date on your profession. Movie tickets can count as research for your job as well as some (or all) of your cable, Netflix, Amazon Prime and Hulu subscriptions.
- Fees paid to your reps or a PR firm can be marked as business expenses. However, you will need to provide statements showing your payments as well as examples of the services they provided. Also, fees paid for acting classes, private sessions and casting director workshops might be good deductions for you.
- Keep track of your mileage as you drive to auditions, agent and manager meetings, acting classes, rehearsals and acting jobs. They can be counted as business trips. In addition, out of town travel for work can include some deductions.
- Did you mail anything related to your career last year? Fed Ex, UPS and USPS expenses that were a result of mailing resumes, headshots and other career items can fall into deduction territory.
- Resumes and headshots, along with postcards and fees charged by sites like LA Casting, can all be classified as "promotional expenses" when filling out your taxes.
- Finally, making business calls can be written off on your taxes. Plus, a new phone can be a tax deduction if you have the proper paperwork to show its business use.
I hope the examples listed above help you save some money. As always, consult with a tax professional when using the above deduction examples. To quote the JP Morgan website:
"This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult with your own tax, legal and accounting team before engaging in any transaction."
Take the money you save on your taxes and invest it in your career with new headshots or taking an acting class.
This actor is finishing his taxes this weekend.
