Actors/musicians earning under $16K from performing get above-line deduction for job expenses (bypasses TCJA suspension).
IRC §62(b) allows a 'Qualified Performing Artist' to deduct performing-arts business expenses ABOVE the line — bypassing the TCJA suspension of miscellaneous itemized deductions. Requires: (1) 2+ employers paying $200+ each in performing arts, (2) performing-arts expenses > 10% of performing income, (3) AGI < $16,000 before deducting expenses. Legislation to raise the AGI cap to $100K has repeatedly stalled — check status. When it fits, restores agent, coach, headshot, travel, wardrobe deductions.
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Talent forms an S-corp or C-corp that 'loans out' services — routes income through corp for retirement + benefit optimization.
Athletes/entertainers taxed by each state they perform in — establish no-tax domicile + optimize duty-day allocation.
College athletes form LLCs for NIL income, deduct training/travel/agent, fund Roth IRA on earned income.
Talent licenses name/image/likeness to a separate IP holding company that receives royalties, isolates from liability.
YouTubers/TikTokers/streamers deduct home studio, equipment, subscriptions, travel, and half of new gear via §179.
On-tour entertainers use IRS high-low per diem (~$309/day) for meals/lodging without receipts — full deduction.
Structure signing bonus as compensation for SIGNING (not future services) to allocate to home-state domicile, not team state.
Structure endorsement deals as receipt of depreciable equipment/vehicles rather than cash — different tax profile.