Tax Deductions for Actors & Writers
Unless you're lucky enough to be employed by a major studio, most actors and writers are self-employed. Self-employed professionals have a range of tax deduction opportunities that can be taken with adequate proof. If you are an actor or writer, familiarize yourself with common tax deductions of self-employed professionals and apply them to professional expenses incurred while applying your craft.
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Classes
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Professional development is tax deductible. Actors and writers who engage in seminars throughout the year to hone their skills can write these costs off on their taxes. Maintain credit card receipts or bank statements to support your deduction. If you are enrolled in a program as a full-time student, only a portion of your education expenses can be written off. According to H&R Block, you can deduct up to $4,000 for tuition and fees.
Subscriptions & Dues
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To remain abreast of industry news, many actors and writers subscribe to news dailies. The cost of these subscriptions are tax deductible. If you are a member of a professional organization such as a union or club, you can deduct the annual costs of membership and your corresponding participation in paid activities. Keep track of your interaction with the organization throughout the year.
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Travel
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Actors and writers are often required to travel for work or in search of new opportunities. Actors audition and writers meet with producers to pitch screenplay concepts. The cost of travel and accommodations is tax deductible. Avoid the temptation of mixing your business trip with pleasure. If you want to make a trip to Los Angeles to visit family, be sure it is not the same weekend you audition for a role on a major project. This could complicate your deduction. For example, your deduction of an airline ticket at 100 percent may be called in question in the event of an audit if the majority of your time is spent pursuing personal interests rather than securing new employment.
Meals and Entertainment
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An essential component of an artist's or actor's career is entertainment. Attending shows to meet other professionals with the intent of networking for business provides a viable opportunity to reduce your tax liability. You can deduct a percentage of your ticket, food and beverage costs associated with the outing. If you take a client or colleague, you can also deduct the cost of his ticket, food and beverage. Tips and gratuities paid while engaging in business meals and entertainment are also tax deductible.
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References
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