Tax deductions for artists

You should report self-employment income on Schedule C, Profit or Loss from Business.
You can deduct expenses you incurred to provide your services.
You can’t deduct any expenses from a W-2 job where you earn wages.

For example, self-employed income would include payments received for artwork sold at an exclusive art show, on consignment at a studio, or at a local event such as a fair.

If you are self-employed, you should keep records of the income yourself. The income may be reported on Form 1099-NEC, Non-Employee Compensation, or on Form 1099-K if you received credit card, debit card, or other types of payments through a payment processor. If you are self-employed and your net earnings are $400 or more, you must pay self-employment tax on the income you report on Schedule C. You may also need to make estimated payments to cover the self-employment tax or income tax associated with the income you report on Schedule C.

Possible deductions for artists

You may be able to reduce your taxes by deducting unreimbursed job-related expenses from your self-employment activity. Make sure to keep receipts to prove these expenses.

Examples of some of the items you may be able to deduct include:

Subscriptions to trade journals related to your work
Dues for trade associations or unions
Continuing education
Payments to galleries to show your work
Shipping costs for your work when purchased by out-of-town buyers
Insurance premiums for protection against liability or wrongful acts
Specialized equipment or tools that are replaceable within 1 year
Safety equipment such glasses, thermal aprons, special gloves, etc.
Sales taxes paid by your customers
State or local government regulatory fees, licenses, or flat rate occupational taxes, provided these fees are not paid for initial certification or licensing
Business bad debts
Car and truck expenses when getting from one work site to another
Legal and professional fees, such as accounting or legal advice that are directly related to the operation of your business
Rental expense for business-use property, such as trailer and equipment rentals
Travel expenses for traveling away from your business home if you are required to be away from home for longer than an ordinary day's work - examples of deductible travel expenses include transportation by car, air, or bus, tolls and parking fees, lodging, and meals (with limitations)
Advertising
Tool and equipment repairs and maintenance
Supplies and incidental materials
Excise taxes and personal property taxes imposed on your business
Special shoes and costumes used for work that you're unable to wear in public

You may be able to deduct work-related education courses or seminars if they meet certain requirements. Courses that typically meet the requirements include:

Refresher courses
Courses on current developments
Vocational courses

However, you can’t deduct courses that qualify you for a new trade or business or that help you meet the minimum education requirements of your present trade or business. For example, an artist cannot deduct the expenses of going to general contractor school to become a contractor, but they may use those expenses for an education credit.

Want more information about what you may be able to deduct? We can help. A Jackson Hewitt Tax Pro can investigate all the deductions that you may be entitled to and will help you file a complete and accurate return. Taxes can be complicated, but you are not on your own. Contact us today.