Actors and Performers Must Incorporate Now!
Though put into action by President Trump, the Biden administration has agreed to keep in place the new tax bill that has effectively eliminated middle-class tax deductions for agent and manager commissions, union dues, training classes, travel expenses, head shots, and many other LEGAL & LEGITIMATE business expenses for freelance actors.
As a result, some working actors will see their taxes almost quadruple, according to Actors’ Equity. ACTORS ARE LOSING A LOT OF MONEY.
“These draconian changes are mean,” said Equity secretary-treasurer Sandra Karas, who also is a practicing tax lawyer and has prepared by her own estimate thousands of entertainers’ tax returns. “They slap working people in the face … performers get the shaft.”
Those who won't be affected and actually will receive tax benefits are freelancers who own their own corporations. Through the years we have helped thousands of Actors & Actresses, Musicians, and Performers of all types successfully turn their "freelance" status into small business owners so that they could reap the financial benefits that are legally bestowed upon them.
From Headshot to Headache
Some basic math as calculated by the leading performer unions
* An actor who earned about $97,000 paid $12,434 in taxes, but would have paid $21,579 under the new law if they could not deduct their legitimate business expenses.
* An actor who earned about $28,000 paid taxes of $513 but would have paid $1,726 if the new law had been in place, an increase of $1,213 or 236 percent. That means his/her taxes more than tripled.
* A married couple, both performers, who earned about $65,000 (or about $32,000 each) paid $1,228 in taxes but would have owed $4,535 under the new law, an increase of $3,307 or 269 percent. In other words, their taxes nearly quadrupled.
NOW IS THE TIME TO INCORPORATE
May you be a recognizable face, an Up and Comer or a Struggling Actor - the same truth remains for all performers: that the new tax code has been set up to ensure you lose. Unless you are incorporated you are the recipient of a harsh slap in the face by our government. We are a Bi Partisan company and don't have any political affiliations. No matter your affiliations, this newly passed tax code is just a bad deal for any working actor/performer. Let us do for you what we've already done for so many others - give you the freedom to keep doing what you love without being penalized for it. Protect your income, gain more benefits and protections, and worry less in what we already know is a stressful industry.