Actor's Taxes

 

FAQs

(click on a question to see the answer)

Was the personal exemption raised in 2009?

Yes. The personal exemption was raised to $3,650.

Where do I deduct my union dues?

Union dues are deducted on Schedule A, ''Itemized Deductions." Don't forget to also include any initiation fees and the 2-1/4% working assessment (if you worked through AEA).

What is the First Time Home Buyer's Credit?

If you purchased your first home in 2009, you may be eligible for this credit of up to $8,000. Certain limitations must be considered before applying for this credit.

What is the difference between a Child Tax Credit and a Child Care Credit?

These are two great tax reducers. The Child Tax Credit is a reduction of $1000 off of your tax liability for each child under age 17. The Child Care Credit is a reduction of your tax liability based on a percentage of the amount you paid in 2009 for child care (pre-schools, etc.) With both credits, certain limitations may apply.

I just went to a great photographer for new 8xl0s. That's deductible, isn't it?

Of course. Also, don't forget the costs of duplications, postage, mailers and resumes.

What was the standard mileage allowance if I used my own car for business in 2009?

The business mileage allowance rate for 2009 is 55 cents/mile.

What kind of documentation is required for my charitable donations?

A cancelled check or receipt from the charity is proof of donations under $250. Any amount over that requires a written acknowledgement from the organization. If you donate an automobile, valued at over $500, you must obtain the acknowledgment on Form 1098-C and attach it to your tax return.

Are health insurance premiums deductible?

Health insurance premiums are deductible as a medical expense if you itemize deductions (using Schedule A). As with all other medical deductions, they are limited only to the amount that exceeds 7-1/2% of your adjusted gross income. If, however, you are self-employed, you can deduct 100% of your health insurance premiums.

I have a day job to pay the bills between acting gigs. How much of the expense going to and from work is deductible?

That is called commuting and commuting is NOT deductible. You can, however, deduct the cost of travel in seeking employment (i.e., auditions, go- sees, agent meetings, etc.)

I collected unemployment in 2009. Do I have to pay taxes on that income?

The first $2,400 of unemployment income is excluded from taxation. Anything above $2,400 is taxed.

I just bought a conservative suit so I can audition for successful business types. It's deductible isn't it?

Unfortunately, no. Clothes that you can wear every day (street wear) are not deductible even if you wouldn't ordinarily wear them.

I just made my $5,000 contribution to my Roth IRA. Where do I deduct it on the tax form?

Careful! Contributions to Roth IRAs are not deductible. They are, however, tax free upon distribution (as long as you are at least 59-1/2 years-old and waited to withdraw the funds for at least five years after the contribution.)

Am I allowed to contribute more that $5,000 to my IRA?

You may contribute up to $6,000 if you are age 50 or older.

What is the basic standard deduction for a person under age 65?

$5,700. (Married, filing a joint return; $11,400.)

How much do I have to earn before my employer no longer needs to withhold FICA (Social Security)?

For 2009, all earnings through wages and self-employment above $106,800 are NOT subject to FICA withholdings. If you worked for more than one employer in 2009 and Social Security taxes of more than $6,621.60 were withheld from your wages, the excess may be claimed as a credit in the "Payments" section of form 1040 on line 69.