For artists who have always wanted to pursue their dreams of being poor in pursuit of their art, but who have worried about how to pay their minuscule tax bill, there is a special deduction to the rescue. This deduction is meant for actors, musicians, and dancers. Unfortunately, the rules required to meet this deduction can be somewhat cumbersome.
First, the artist must have been a W-2 employee for at least two employers during the year and each employer must have paid the artist at least $200.
Second, the expenses that the artist is deduction must be more than 10% of the total income from the artist’s work.
Third, the artist’s total gross income must be less than $16,000. This number was set in 1986 and has never been adjusted.
The problem with this deduction is that if the artist’s income is less than $16,000, they have little to no taxes to pay anyways. But, just in case, there is a special deduction just for starving artists.
If you need help with your taxes, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.