ACTORS AND TAXES - HELP!!!

What happens when someone says "taxes" to you?  I tend to freak out, procrastinate, and feel like I don't know where to begin, what to itemize, or if I should itemize.  As an actor, I save my receipts but often feel unsure as to what I can and cannot write off.  After a little research, here is what I found (Disclaimer: Always consult a tax expert.  I am not one).

You have to make money in order to receive a refund i.e., you can't deduct more than you made.  If your annual earnings as an actor were less than $6,000 and you’re expenses as an actor were above $6,000, it probably means you won't get any money back, but most likely, you won't owe  taxes either.  However if you’re the 5% of SAG/AFTRA members who actually support themselves on an actors income, the following information may help you get a refund or pay fewer taxes - just make sure you save your receipts/keep good records.

Agent Fees:  You may deduct all the fees your agent charges.

Union Dues:  If you belong to Actors Equity, Screen Actors Guild/American Federation for Radio Television Artists or other unions, your dues are deductible.

Education: Acting classes and coaching lessons are deductible.  However beware, unlike classes, health club dues aren't deductible professional expenses. A gym membership is considered a personal expense even if an agent or director told you to get in better shape for a specific role.   If getting in shape is a necessity for a specific role, see if you can get your agent or lawyer to negotiate the cost of a personal trainer or gym membership to be included in your project contract.

Business Travel:  When you travel out of town for work or auditions, you may deduct all reasonable expenses you incur.  These expenses may include airfare or other transportation costs and hotel or other lodging expenses. But, you may only deduct 50% of the cost of meals when you travel for your acting business. 

Local Travel Expenses: Keep track of your mileage http://appadvice.com/appguides/show/Mileage-Tracking-Apps-For-iPhone and use the federal government's standard mileage rate.  https://www.irs.gov/Tax-Professionals/Standard-Mileage-Rates  You can also deduct public transportation.  Local travel may include trips to performances (as a performer or audience member if you can justify it as research or networking), rehearsals, acting classes, auditions, and to pick up supplies.  If you have an a-type personality and keep track of all your car expenses i.e. gas, oil, repairs, car washes etc  you can use these figures  in your annual deduction.  Otherwise, just keep track of your mileage and use the standard rate.

Office Expenses: If you have an office in your home that you use exclusively for your acting business, you may be able to deduct the cost.  Note, it must be exclusive.  You cannot use the room for anything but your office or studio.

Equipment and Depreciation: The Internal Revenue service has a 179 code that allows you to to take a deduction when you purchase equipment (video cameras, microphones, etc.), books, musical scores, business computers or cell phones in a single year.  If you don't want to take a lump sum deduction, you can deduct the cost a little at a time over a period of years aka depreciation.  

Supplies: Deduct items you purchase for your acting business that you use up in less than one year. They include stationery and postage.

Promotional expenses: If you spend money to promote yourself as an actor, it is deductible.  Some examples are headshots,  videos, websites (including internet connection costs), listings in professional registries, advertisements in trade publications, and business cards.

Make-up and Hair Salon Visits: These expenses are deductible only when incurred directly in connection with a specific job. You can't deduct make-up and hair care for the simple purpose of looking good.  Also, you may not deduct Botox, fillers, or any plastic surgery.

Clothing/wardrobe: You may only deduct the cost only if it is not suitable for street wear - i.e clown suit, police officer uniform, scrubs etc.  You can't deduct a business suit, new jeans, or a cool flannel shirt, but you could deduct an astronaut costume.

Publications: If you subscribe to a magazine or journal relating to acting like Backstage www.backstage.com or Daily Variety www.variety.com, you can deduct these expenses.   
Legal/Professional Services: When you consult with attorneys,  accountants, and other entertainment professionals you can deduct the fees if they are related to your acting business.

Insurance: As an actor or any other self-employed person, you are also allowed to deduct 100% of your health insurance premiums from your taxes. You may also deduct a portion from your homeowners' insurance if you have a home office.

Meals and Entertainment:  To deduct the cost of a meal in a restaurant or an entertainment event like football game or theatre excursion, you must have a serious business discussion before, during, or soon after the event. Only 50% of the business meal and entertainment cost is deductible.

Phone(s): You get no deduction for a single phone in your home; but you may deduct the cost of long distance phone calls and special phone services you use for business such as call waiting or message center. You may deduct the full cost of a second phone line you use at home for business, including a cell phone.

Film and Theatre Tickets: To keep up with what's going on in your industry aka "research", keep track of plays or films you attend or entertainment service subscriptions you pay for - but only use receipts from projects you can link to your personal research.  For example, deducting the cost of your HBO subscription, because they film the TV show THE LEFTOVERS in your hometown seems legit or writing off the latest Robert Rodriguez film because he auditions actors in your town looks legit to the IRS.  These costs are deductible as "research."  Make sure you can justify any of these items as  reasonable. It won't look good if you deduct every cent you spend for these items.