Don’t Let Tax Savings Slip Through the Cracks
Creative professionals—actors, musicians, dancers, producers, content creators, and performers—often operate in complex financial environments. Between irregular income, touring expenses, equipment upgrades, and creative investments, it’s easy to overlook legitimate deductions that could significantly reduce your tax burden.
At Artists Business Management Group Inc. (ABMG Inc.), we specialize in helping entertainment clients uncover every possible deduction. Our goal is simple: ensure you keep more of what you earn, while staying fully compliant with IRS rules.
Here are 10 tax deductions that creatives often miss—but could collectively save you thousands each year.
1. Home Studio or Workspace Expenses
If you record music, film content, audition remotely, or produce from home, you may qualify for the home office deduction—even if you live in a small apartment.
You Can Deduct:
· A percentage of rent/mortgage based on studio square footage
· Utilities like electricity, internet, and phone service
· Equipment depreciation (mics, lighting, cameras, soundproofing)
ABMG Tip: The IRS requires that your workspace be exclusive and regular for business. ABMG can help document eligibility properly and maximize this deduction safely.
2. Wardrobe, Costumes & Makeup
Clothing purchased specifically for performances, photoshoots, auditions, or media appearances may be deductible—if it’s not suitable for everyday wear.
Examples Include:
· Stage costumes
· Professional makeup and wigs
· Branded apparel for merch or videos
· Character-specific clothing
Case Study: A drag performer working with ABMG deducted over $8,000 in annual wardrobe expenses, fully substantiated with receipts and production schedules.
3. Travel for Gigs, Auditions, or Collaborations
Travel costs tied directly to business can be deducted, even if you’re working remotely or on tour. But many creatives miss key components.
Deductible Expenses:
· Airfare, hotels, and rideshares
· Per diem for meals while traveling
· Luggage fees and rental cars
· Travel to auditions or events (even last-minute gigs)
ABMG Tip: Mixing business and pleasure? You can still deduct the business portion—with accurate records. We help split mixed-use travel cleanly for IRS protection.
4. Agent, Manager & Legal Fees
If you pay an agent, publicist, lawyer, or manager a percentage of your income or a flat retainer, that’s a deductible business expense.
Examples:
· Talent agent commissions
· Legal fees for reviewing contracts or licensing agreements
· Publicist or PR campaign retainers
Real-World Insight: Many traditional accountants miss entertainment-specific professionals in deductions. ABMG’s industry experience ensures you don’t.
5. Know When to Outsource Your Business Managementa5. Marketing & Promotional Costs
Promoting your career is part of the job—and so are the costs. If you’re investing in visibility, those expenses are likely deductible.
Includes:
· Website design and hosting
· Graphic design for album covers, logos, or merch
· Social media ads, YouTube promos, or influencer collaborations
· Business cards, brochures, and EPKs (electronic press kits)
ABMG Tip: We advise clients on separating personal social spending from promotional content spending—making tax prep clearer and cleaner.
6. Gear, Equipment, and Tech Upgrades
Anything you use primarily for your craft—recording, editing, streaming, creating, or performing—may be depreciable or fully deductible.
Deductible Tech Examples:
· Cameras, microphones, audio interfaces
· Instruments, DJ gear, mixers
· Laptops, monitors, and storage drives
· Lighting kits or green screens
Bonus: For gear under $2,500, you may qualify for immediate expensing under the de minimis safe harbor rule. ABMG walks clients through proper categorization under IRS Section 179.
7. Education, Coaching & Skill Development
Taking an acting class? Enrolling in a songwriting masterclass? Hiring a vocal coach? If it enhances your current career, it may be deductible.
Deductible Examples:
· Acting intensives
· Screenwriting workshops
· Dance training or choreography development
· Private lessons for vocal or instrument mastery
ABMG Insight: The IRS disallows expenses for new careers but allows ongoing education. We help clients position expenses clearly for audit safety.
8. Software Subscriptions & Apps
Modern creatives use dozens of tools to produce and promote their work. If a subscription is tied to your craft, it’s likely deductible.
Often-Missed Tools:
· Adobe Creative Cloud, Final Cut, Logic Pro
· Canva Pro, Dropbox, Zoom
· Music licensing or sample libraries
· Project management or invoice tools
Pro Tip: These often show up as “miscellaneous” in bank statements. ABMG helps clients categorize monthly recurring software spend for proper write-offs.
9. Phone, Internet & Digital Utilities
Your phone and internet bills aren’t fully deductible—but the business-use portion is. Most creatives underestimate this deduction or forget to track it altogether.
What ABMG Helps You Track:
· % of your cell phone use for business (calls, emails, social, coordination)
· % of home internet use for streaming, uploading content, Zoom meetings
· Costs of dedicated phone lines or hotspot usage while touring
ABMG Tip: We create time-use logs for clients to support business-use allocations during an audit.
10. Self-Employment Health Insurance Deduction
If you’re a self-employed creative paying for your own health insurance (and not eligible for employer coverage), you may deduct premiums above the line—even if you don’t itemize.
What’s Deductible:
· Health, dental, and vision insurance premiums
· Long-term care insurance (with some limits)
· Premiums paid for dependents
Case Study: A full-time YouTube producer reduced their taxable income by $6,800 by deducting their insurance costs—something their last accountant completely missed.
Why Performers and Creatives Need Industry-Specific Tax Guidance
Generalist accountants or online tax platforms often miss or misclassify entertainment expenses—leading to lost deductions or audit risks.
At ABMG Inc., we understand the nuances of:
· Royalty and residual income
· Touring-related expenses across states
· Agent commission splits
· Mixed-use equipment and travel
· Sales tax on merch or digital products
We don’t just “file your taxes”—we build a year-round strategy to reduce your liability and strengthen your business foundation.
Are You Leaving Money on the Table?
If you’ve ever wondered:
· What deductions apply to my industry?
· Am I missing tax savings from my touring or content creation?
· Can I deduct that last camera purchase or trip to NYC?
Let’s find out—together.
