Paying taxes on income earned from performing can be somewhat more complicated than paying taxes on the income from a normal job or career. For starters, the company that you work for in the 9 to 5 world automatically deducts state and federal income taxes out of your paycheck. As a performing artist, it is up to you to set aside a certain amount of your acting paycheck to cover any income taxes that you may owe. Neglecting to do this could result in a sizable amount to be paid to the government at tax time that you are not prepared to pay. Through your accountant or tax preparer you may also consider paying quarterly estimates to the government to keep yourself covered. Acting is a business.
Therefore the government allows you to write off all types of acting related expense up to the income you earned through acting. So if you earned $1,000 for the year, the government may allow you to claim up to $1,000 in acting expenses. Of course, consult a tax advisor for more details. Always keep accurate records of your acting expenses on anything remotely related to acting, including the cost of head shots; printing up your resume; travel expenses to and from auditions; makeup; any meal and lodging expenses incurred while working as an actor; the cost of acting, improv, singing, dancing, and auditioning classes; dry-cleaning costs; postage; gym membership; and anything else that you spend to help your acting career. Of course, any expenses must be used exclusively for your performing arts career. You can't just buy a new wardrobe or a new computer and claim that they are career expenses since they could also be considered personal items.
Deducting Acting Expenses
Be sure to keep accurate records of your acting expenses and consult your tax adviser for specific information about tax deductions, such as when and under what conditions these deductions can be taken. Possible deductions include the following:
Travel expenses to and from auditions, including meals and lodging
Admissions to movies and plays (remember to save all ticket stubs)
Acting classes, workshops, and seminars
Acting books and magazines
Office supplies
Mailing expenses
Telephone bills, including the cost of an answering machine or service, a pager, or cellular phone
Union dues
Head shots, including photographer’s fees and duplication costs
Resume creation, and printing and duplication costs
Make up and clothing specifically used for acting, along with any dry cleaning expenses
Cost of creating, and duplicating a demo tape
