Tax Relief for Artists: Higher Income Limits for Work Expense Deductions
This Act amends the Internal Revenue Code of 1986 to increase the adjusted gross income limitation for the above-the-line deduction of expenses of performing artist employees. It introduces a phaseout mechanism for the deduction once income exceeds certain thresholds and raises the threshold for determining nominal employers. These changes apply to tax years beginning after December 31, 2023.
Key points
The Act clarifies that deductions for performing artists include any commission paid to the artist's manager or agent.
A phaseout is introduced: expenses taken into account are reduced by 10 percentage points for each $2,000 ($4,000 for joint returns) by which gross income exceeds $100,000 ($200,000 for joint returns).
The threshold for compensation from a single employer, used for determining nominal employers, increases from $200 to $500.
The $100,000 income amount and the $500 compensation amount will be subject to cost-of-living adjustments for tax years beginning in a calendar year after 2024.
Status:
Expired
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