How does a qualified performing artist deduct business expenses?
According to the IRS, "Qualified performing artists may deduct business expenses as an adjustment to gross income instead of on Schedule A (subject to 2% of AGI).
Thus, these artists get 100% of their deductions even if not itemizing (IRC Sec. 62(a)(2)(B)). However, there are some requirements in order to qualify for this favorable tax treatment.
The qualification rules are the that the taxpayer must have worked for at least two employers (earning at least $200 from each) in the performing arts with an AGI of $16,000 or less before the deduction for qualified performing artist. The related business expenses must exceed 10% of the gross income from performing arts.