The Big Beautiful Bill Extended a Costly Rule for Actors! Here’s What You Need to Know

If you're an actor earning W-2 income, you probably already know this: most of your job-related expenses haven't been deductible for a while. That’s because the 2018 Tax Cuts and Jobs Act (TCJA) suspended what’s known as miscellaneous itemized deductions including unreimbursed "employee" expenses like:

• Agent commissions

• Union dues

• Coaching

• Headshots & reels

• Travel to auditions or gigs
  

With the recent passage of the Big Beautiful Bill, this suspension has been extended, meaning W-2 actors still cannot deduct these out-of-pocket expenses on their federal tax returns. Even if you spent thousands to keep your career afloat, the IRS does not allow a write-off unless that income came through a business.

So… What Now? 5 Steps to Protect Your Wallet

1. Track Everything Anyway

Even if it’s not deductible now, that could change. Plus, some of those same expenses may be deductible if you start earning any 1099 or business income. Keep solid records, just in case. You can do this in excel, word or Quickbooks. If you prefer something already set up, I created a toolkit for you to track bookings, rate, income, expenses and more. Check it out here.

2. Start Earning Some 1099 Income

Seek or create income opportunities that pay you as an independent contractor, like:

• Coaching

• Voiceover work

• Social media partnerships

• Guest speaking, teaching, or hosting

That income gives you the ability to legally deduct your career expenses through a Schedule C or LLC.

3. Negotiate

You may not be able to deduct expenses, but you can still try to get them covered:

• Ask for a higher base pay to absorb the cost of agent fees or wardrobe

• Or request reimbursements (for travel, hotels, classes, etc.) in a respectful and professional way of course. Get a feel for the vibes of what's deemed acceptable to avoid missing out on work opportunities.

  
  

It’s not always possible, but some production companies have flexibility & understand the need.

4. Ask a Pro

If your income is a mix of W-2 and 1099, it’s time for a personalized tax plan. Knowing what’s deductible and how to structure your work can save you thousands over the long run. I'm always here to help if needed. Book Time here.

5. Consider Becoming a Loan-Out

This is a powerful move for serious working actors. A loan-out company is your personal business entity (usually an S-Corp or LLC) that contracts with production companies. Instead of being paid as an individual, your company is hired—which opens up a world of deductions and tax benefits.

🔗 Curious about how a loan-out works? [Read more about it here.]

Conclusion

The Big Beautiful Bill didn’t bring back your deductions, but you still have options. By being proactive, structuring your income differently, and thinking like a business, you can keep more of what you earn while building a career that’s sustainable... financially and creatively.

Need help figuring out your next step? Let’s talk.