Note: The non-deductibility of employee (i.e W-2) business expenses has been made permanent as of 2025. Therefore, the following tips are really only applicable now for those earning 1099-type income, or for residents of certain states (i.e. NY, CA) that still allow employee business expenses to be deducted. Even then, the expenses would need to exceed the state standard deduction to be useful on the tax return. Large union dues payments and/or large agent commissions would go a long way in that regard.
What % of my cellphone bill can I deduct?
The answer depends on how you use your phone in your career. For example, very busy commercial actors or print models who run around the city most days attending go-sees, all the while in frequent contact with their agent, would claim a higher % than a performer who only checks their voicemail a couple of times a day during their restaurant shift. In any case, unless you have a separate exclusive business cell number, in an audit the IRS would frown on a 100% deduction, so be realistic and reasonable, keep the deduction between 20-80%, and you should be fine.
What % of my internet bill can I deduct?
Like the first answer, be realistic, and again think about the necessity of the service in terms of your career. If you actually use the internet in the course of earning your income, then a higher % is fine. Otherwise, think in terms of 30-70% for this expense. (FYI: The cost of maintaining a website should be deducted as publicity.)
I bought clothing that I only wear for auditions… can I deduct it?
No, never. The only deductible clothing for tax purposes are legitimate costumes, uniforms, and dancewear. That’s the IRS rule, not mine.
Can I deduct the cost of all the local transit trips I took last year?
Of course not. You can deduct the cost of local transit to in-person auditions and unpaid performances/rehearsals. Add in 3 or 4 cab rides for when you were running late, and there’s your deduction. (This applies to regional transit use as well.) But remember… commuting on a regular basis to & from a paid job as an employee is not deductible. On the other hand, if you’re a freelance (i.e. 1099) worker, then all costs of getting to/from your paid gig is probably a deductible expense.
What are “business meals”, and how much can I deduct?
The IRS definition is that it’s the cost of treating someone to a meal, who can assist or advance your career. In our case the examples would be a casting director, musical director, playwright, agent, director, or the like. (Not your cast-mates whom you treated to a round of beers after rehearsal.) Keep the receipt, and make a note of the person’s name and the business relationship. (Please note that as of 2018, the cost of business entertainment, as opposed to meals, is no longer deductible, and even meals are really only deductible now against 1099-type income.)
Can I deduct the cost of dance or Pilates classes I attended at my gym?
As a performer, generally not. But if you can get an itemized receipt from the gym detailing that it’s for a dance class and its separate cost, that would be OK. Gym memberships are considered by the IRS to be a personal expense, so unless you earn your living as a competitive weightlifter, pilates teacher, or personal trainer, they are NOT deductible as a business expense.
Can I deduct the cost of every show and movie I saw last year?
If you’re a film actor, then some film tickets are probably fine… same with theater performers and theater tickets, but in both cases be prepared to defend the expense, (i.e. research for a specific role, show, or the director), should an IRS or state audit occur. If you decide to cross over and deduct tickets for a part of the profession in which you don’t actively participate, be aware that it could get disallowed in an audit, (though it’s not an expense that’s likely to trigger an audit in and of itself).
What about haircare and makeup?
An area in which to be judicious, especially for women. The tax folks assume that you have regular personal expenses for this, so it’s inadvisable to try and deduct the cost of all the makeup and hair products purchased at Walgreen’s or CVS during the year. Better to have receipts from a dedicated theatrical makeup retailer. Even better, get a clause in all your contracts stating you are responsible for the cost of your hair maintenance and makeup, unless you’re not, in which case you won’t have the expense. For men, neither of these deductions is a huge issue, especially since few of us wear much makeup these days, but no deductions for haircuts unless it’s contractual. The upshot is, if it’s for a show and your contract says you have to pay for it, it’s OK… everything else is considered personal grooming. And the closer the expense is to the start of a job, the better.
I worked on tour and received a per diem… how does that affect my taxes?
For most actors, the amount you might have received in per diem to cover housing and/or meals is almost always less than the IRS says it should cost you to live in hotels and eat on the road. Because of that, your per diem amounts are never taxable, nor are your expenses deductible, since the IRS assumes that you’ve spent the entire amount. So you really don’t need to save any receipts for either housing or food, with this one caveat… if you’re a luxury-craving, steak-eating spendthrift, then it’s conceivable that you might have spent more than you received, which means you can deduct the excess expenses on your tax return, providing you kept all your receipts. If you spent less, then congratulations… you get to keep the excess tax-free. (And remember: per diems are only meant to cover housing and/or food. Any other expenses you had while away from home overnight are generally fully deductible… see the Out of Town worksheet for details.)
I’m working out of town… do I really need to be grabbing for those restaurant receipts after each meal?
No, you don’t… this is a common fallacy left over from the old days of touring. The IRS publishes meal allowance rates for each US location, which we use to calculate what you should have spent on food while on tour or at a regional theater during your time in each locale. In my experience, these allowances almost always end up being more than actual expenses, particularly if you have access to a kitchen. The upshot is that as your preparer, all I need are the locations and dates for each out of town job or audition trip, and I’ll do the rest… it’s just easier. (Reminder: This, like most of the above advice, is really only applicable for 1099-type income. Most union work is paid via W-2.)
