Taxes for Actors
Unlike folks who receive regular paychecks with taxes taken out, actors typically work in spurts - a stage production for a few weeks here, a film shoot for a few days there, some TV work, maybe a commercial, and the traditional cater-waiter gigs or temping during slow times. Like everyday folks, however, taxes for actors do have to be paid. And no one wants to owe Uncle Sam. Taxes for actors are no difference from everyone else and actor tax deductions should be documented for your benefit. Basically, there are two areas of knowledge for actors to master regarding their taxes for acting jobs.
First, actors have to distinguish between different types of income. For example, there is income in which an employer withholds taxes and social security, and there is income in which the actor is viewed as an "independent contractor" and thus personally responsible for calculating taxes on their own.
If an actor works an independent contractor, they will likely have to pay their taxes on a different schedule than most people - that is quarterly, not yearly. Meanwhile, many actors take advantage of a special category created by the Internal Revenue Service, "Qualifying Performing Artist," which has its own set of rules and regulations. At minimum, actors have to know how to report their income on various federal, state (and often city) tax forms, and might seriously think about working with a certified public accountant (CPA) to sort it all out.
Second - and this is another reason a CPA can be useful - actors have to understand two related concepts: itemizing deductions and deducting business-related expenses for their acting jobs. Simply put, actors might be able to use the cost of finding work and researching a role - as well as union dues, phone bills, makeup, dinners, and driving expenses - to help defray a tax bill. At the same time, a lot of special rules govern this too in the entertainment industry.
LINKS
Saver the Feelings
The IRS's new "saver's credit."
Paying Quarterly Estimated Taxes
Cautioning independent contractors.
Actors' Taxes
What's deductible?
Declaring All Your Income
When actors say, "I declare!"
|
|
