As a performer working full-time in the Entertainment industry, I have come to realize that there are a lot of expenses everyday that you wouldn't even think are tax deductible. So for fellow performers out there, and even any freelance worker, I wanted to help you out with some information I have been lucky enough to learn about from my accountant while claiming certain job expenses for the dreadful tax season.
- TECHNOLOGY: Before tour started in June, I purchased a new 2 year contract + phone in May. With tracking my data usage on my new network vs. my old network, I have been able to make a case of the fact that I needed it for more reliable data connectivity while traveling. Performers are constantly using the internet to search for upcoming auditions, checking emails related to castings, etc. - these are all reasonable claims. Overall, I claimed the cost of my device as well as 30% of my phone bill service charges (as it's not a strictly business phone - I use it for lifestyle AND work, the IRS will let you claim up to 30% of your phone bill) more on that here. Some examples of additional technological expenses that are tax deductible related to work can be: a computer, tablet, and headphones.
- JOB RELATED TRAVEL: My travel expenses to Los Angeles, NYC, and Florida are tax deductible too! This is because I kept a record of attending an audition ("job searching" purposes) and/or taking dance class ("job training" purposes) while visiting these places. Yep - those plane flights, car rentals, and hotel costs can get expensive but they qualify for "travel related to your job". Luggage fees, luggage purchases, backpacks, weekender bags, and small toiletries bags are all examples of tax deductible travel essentials too. Specific to tour life, I had to move a lot of personal belongings from my condo back home in FL and put things in storage while gone - so moving & storage fees accrued due to the occupation are tax deductible too.
- PERSONAL UPKEEP: As a performer, you are someone in the public eye. Your appearance is necessary for you to be successful at your job - so that means expenses that you put into your appearance can be tax deductible as well. Hair and skin care products, upkeep that is necessary such as waxing or laser hair removal, teeth whitening, manicures and pedicures are some examples of tax deductible options.
- WORK ATTIRE: Dance clothes can be expensive too (one pair of point shoes can run you $70+ - phew!). So keep track of your expenses on workout attire, sneakers, socks and headbands even. With tour, we are required to have proper professional attire for PR events, which I have been able to write off as well. Being that I am from FL, I even claimed my snowboots which I purchased on tour due to proving that I wouldn't have normally needed to buy these if it weren't for my profession bringing me to these snowy places.
- JOB MATERIALS / EQUIPMENT: Firstly, photoshoot sessions can be pricey if you are working with a photographer or videographer that is not willing to shoot you for free or under TFP (trade-for-print) terms. Lets face it, most people don't work for free. So - those expenses on shoots are tax deductible as well. We need these photoshoots to serve as our selling materials - they are what we use as business cards & resume. This leads to printing expenses for comp cards, resumes, portfolios, etc. Be sure to include all those expenses to your accountant. Additional materials can be office supplies for sorting and organizing your photos, binder for photos and portfolio, a new office printer & ink supply if you prove that you use it to print your own professional quality photos even.
There are numerous expense tracking apps, and websites that can help you stay organized. I don't do it everyday, but just once a week, I'll think back to my expenses and take pictures of the receipts, and store them in a folder somewhere safe. When finding an accountant to handle performer related tax returns, be open from the beginning with how many w2s or 1099s you have, always be honest, and provide as many materials and proof of your expenses as you can.
If you are traveling like me, provide per diems of the cities you stayed in with your schedule. This can be found on the IRS's Per Diem page. This will cover your non-itemized expenses like in-city travel, lodging, meals and entertainment per the proper rate of that city under the rates of which the IRS has set.
So throughout the year, try your best to keep track of your personal expenses if you want the tax return that you deserve - and ask yourself - am I using this for work purposes?
Best of Luck This Tax Season!
(Comment below if you have anything to add to be of help to our fellow entertainment folks)
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