Actors,
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In any case,
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Many artists end up with a combination of income types: income from regular wages and income from self employment. Income from wages involves a regular paycheck with all appropriate taxes,
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The business related expenses are deducted differently for each type of income,
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If you get a regular paycheck: If you’ve got a gig lasting more than a few weeks,
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Union dues,
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Apparel: Uniforms,
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Cleaning of work related apparel,
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Education: Acting,
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Photographs,
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2. If you are considered an independent contractor: Independent contractors get paid by cash or check with no withholding of any kind. This means that you are responsible for all of the Social Security and Medicare normally paid or withheld by your employer; this is called Self Employment Tax. In order to take your deductions,
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Advertising: Promotional and marketing materials go here,
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Legal and professional fees: Commissions to agents,
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Auto/transportation expenses: Track your mileage to auditions,
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Insurance: Any special insurance or bond required because of your work. NOTE: Health insurance is deducted elsewhere,
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Supplies: Shoes,
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Other: Postage,
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3. If you have a combination of income types:You will be better off subtracting as many expenses as you can on the Schedule C,
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4. If all of this seems overwhelming or confusing: Go to a professional tax preparer. The most important thing for you to do is keep track of your income and expenses; you can always pay someone to put everything in the right place on the right form for you. But good recordkeeping is crucial. Even the best tax professionals cannot save you money or keep you out of trouble if you don’t have good records. Keep all receipts,
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