What Is the Qualified Performing Artist Tax Deduction?
Learn about a specific tax deduction that allows employee performing artists to lower their adjusted gross income with unreimbursed professional costs.
The Qualified Performing Artist tax deduction is a provision in U.S. tax law for performers who work as employees. It allows them to deduct job-related expenses directly from their gross income. This is an “above-the-line” deduction, which means an artist can lower their adjusted gross income (AGI) without needing to itemize. This allows a performer to claim their business expenses and still take the standard deduction.
This tax benefit is for professionals like actors, musicians, dancers, and other artists who receive a W-2 from an employer. The deduction acknowledges that performers often have significant out-of-pocket expenses, even as employees. This approach differs from most other employee expense deductions, which were temporarily suspended for the majority of taxpayers through 2025.
Eligibility Requirements for the Deduction
To be recognized by the IRS as a Qualified Performing Artist (QPA), an individual must satisfy three tests. The first test relates to employment history. A performer must have worked as an employee in the performing arts for a minimum of two separate employers within a single tax year.
A detail of this first test involves minimum earnings. From each of the two or more employers, the artist must have received at least $200 in wages. Any employer who paid less than this amount does not count toward meeting the two-employer requirement. For example, if an actor earned $5,000 from one theater and $150 from a second for a workshop, they would not meet this test.
The second test is an income limitation. The performer’s adjusted gross income (AGI) for the tax year cannot exceed $16,000. This calculation must be made before subtracting the performing artist expenses. If a performer is married and files a joint return, this limit applies to the couple’s combined AGI. This AGI ceiling has not been adjusted for inflation, which restricts the number of performers who can qualify. If a dancer has an AGI of $16,500 before considering their expenses, they are ineligible for the deduction, regardless of their other circumstances.
The final test involves the relationship between expenses and income. The artist’s allowable business expenses must be more than 10% of their gross income from performing arts. Gross income for this test is the total wages received from performing. For instance, if a musician earned $15,000 in gross wages from gigs and had $1,600 in qualifying expenses, they would meet this requirement because their expenses are more than 10% of their income ($1,500).
Calculating Your Allowable Expenses
Qualifying business expenses are unreimbursed costs paid by the employee that are directly related to their work in the performing arts. Common examples include agent and manager commissions and dues paid to professional unions such as SAG-AFTRA or Actors’ Equity Association.
Travel expenses are another category. This includes the cost of transportation, such as airfare or mileage, and lodging for work that requires being away from home overnight. The cost of meals while traveling for work can also be included, though it is limited to 50% of the actual cost. These travel costs must be for specific jobs or auditions, not for a general relocation.
Other professional costs are also deductible. Performers can include expenses for marketing materials like professional headshots, resume printing, and website hosting fees. The cost of training and coaching, such as acting classes or voice lessons that maintain or improve skills, are also allowable. Additionally, the cost of specific costumes, makeup, or props necessary for a performance can be deducted, provided they are not suitable for everyday wear.
The total of these individual costs is the amount of the deduction. The artist must gather all receipts and records for their unreimbursed expenses incurred during the tax year.
How to Claim the Deduction on Your Tax Return
Claiming the Qualified Performing Artist deduction requires using specific IRS forms. The primary document is Form 2106, Employee Business Expenses, which taxpayers must use to officially calculate their deduction amount. It is important to use the form designated for the correct tax year.
When completing Form 2106, the taxpayer will enter their total calculated expenses. The form has a specific section for performing artists, which guides the user through the calculation based on the eligibility rules. The total from the expense calculation is entered on the appropriate line to arrive at the final deductible amount.
The final step is to transfer the result from Form 2106 to Schedule 1 of Form 1040, “Additional Income and Adjustments to Income.” By entering the amount on Schedule 1, the taxpayer reduces their gross income to arrive at their adjusted gross income. This directly lowers their taxable income, regardless of whether they choose to itemize or take the standard deduction.