It's important to be as good at record keeping as you are at acting. Tax time is just around the corner and it's critical that you've been keeping track of all of your income and expenses. While many of these tasks are not nearly as fun as performing, they are extremely important. Have you kept a close eye on all of your income to make sure you're not missing any residual checks? Have you been keeping copies of all of your check stubs so you'll know how many W2s to expect in the mail? Have you been keeping all of your receipts for career-related expenses?
Keeping your receipts can make a huge difference when it's time to determine if you owe money when you file your taxes, or how much of a refund you'll receive. If you're not the best organizer, try keeping an envelope in your car to collect receipts and maybe a shoebox at home that you can store them in. While it might not be the most sophisticated method, at least you'll have everything you need when it's time to have your taxes prepared.
By the way, do you have a list of all of the expenses that you can deduct? If not, let's review some of the common expenses that actors should be tracking:
- Initiation fees, union dues, professional society fees
- Contract legal fees
- Commissions to agents and managers
- Professional Registries (Players Guide, Academy Players, etc.)
- Classes and coaching lessons
- Cosmetics and Dressing Room supplies for professional use
- Hair care for specific jobs
- Gas mileage for auditions, jobs and career-related errands
- Photographs and resumes
- Stationery and postage for mailings
Wow, that's quite a bit! Did you know that you could deduct all of those expenses at tax time? And guess what, that's not all. Tomorrow we'll continue taking a look at tax tips for the working actor. In the meantime, visit http://www.StarSearchCasting.com and search for your next great role!
Tax season will be here before you know it, so yesterday we began looking at some of the expenses that actors can deduct when it's time to itemize their taxes. We shared a number of actors' business expenses yesterday, but here are a few more that you should be keeping track of:
- Theater books, scripts, sheet music, rosin, tapes, records, etc.
- Portion of home phone bill used for business
- Cell phone and internet bills
- Theatrical wardrobe
- Theatrical wardrobe maintenance (dry cleaning, tailoring, etc.)
- Theater, film and concert tickets
- Rehearsal studio bills
- Accompanists
- Home office
- Trade papers
- Work-related travel expenses
When you itemize your taxes, and factor in the appropriate deductions, it can make the difference between owing Uncle Sam and getting refund! So be sure you find a tax professional that can help you will all of your tax filing needs.
On another note, when discussing taxes for the working actor, you may hear some actors pondering whether they should incorporate or not. Did you know that many filmmakers who embark on new film projects set up a corporation for each film they produce? This helps filmmakers protect their personal property in the event of lawsuits during the filmmaking process. This also protects each project from any debts or liabilities incurred by any other films they make.
Well in the 1930s, actors began to follow suit and incorporate themselves, a strategy that's still used widely today. It can be especially useful for actors who want to eventually produce their own projects, or have more control of their money. However before you consider incorporating, it's important that you speak with an attorney. Additionally, due to the amount of money incurred by forming and maintaining a corporation, it's probably best that you wait until you're making on average $200,000 per project and working consistently.
$200,000 per project sounds like a lot of money doesn't it! But don't worry. I know you'll get there eventually. If you're ready to start working towards that goal visit www.EliteCastingNetwork.com and check out our auditions today!
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