Performing artists

[Margaret CPA in OH]

Son of client has toured with a band receiving 1099's not W-2. Does he qualify as performing artist for adjustments to gross income or must he file Sch. C and deduct expenses? My first reading is Sch. C but want support. Thanks!

[kcjenkins]

Sch C   

 

Qualified performing artist. You are a qualified performing artist if you:

1. Performed services in the performing arts as an employee for at least two employers during the tax year,
2. Received from at least two of those employers wages of $200 or more per employer,
3. Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts, and
4. Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist.

In addition, if you are married, you must file a joint return unless you lived apart from your spouse for all of the tax year. If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse.

However, requirement (4) applies to the combined adjusted gross income of both you and your spouse. If you meet all the requirements, include any amounts attributable to performing-arts-related expenses in the section for Reservists and Performing Artists. Your performing-arts-related business expenses are deductible whether or not you itemize deductions. 

[Margaret CPA in OH]

Thanks, my reading, too. When I received the actual documents, it was clear that he was not an employee while on tour (guess they all do that)and was expected to pay for his own food although transportation was provided. Of course there were no receipts for meals but the tour was online so pretty easy to document the locations, days and rates. No wonder he came home with no money and declined to go with them to Europe! It would have cost him for the adventure but he's young.