Performing Artist Tax Parity Act of 2025
Performing Artist Tax Parity Act of 2025
Plain Language Summary
# Performing Artist Tax Parity Act of 2025 - Plain Language Summary **What the bill would do:** This bill would make it easier for performing artists to claim tax deductions for their work-related expenses. Currently, performers can deduct certain business costs (like instrument maintenance, costumes, or travel) from their taxes, but only if they earn $16,000 or less in adjusted gross income per year. The bill would remove this $16,000 income cap, allowing higher-earning performers to access the same deduction.
It would also raise the minimum payment threshold from $200 to $5 (though the bill summary appears incomplete on this detail). **Who it affects:** This primarily benefits performing artists—including musicians, actors, dancers, comedians, and other entertainers—who work as employees for multiple employers during a year and have significant work-related expenses. Currently, the income limit excludes many successful or established performers from this tax benefit, so the bill would particularly help mid-to-high-earning artists. **Current status:** The bill (HR 721) was introduced in the 119th Congress by Representative Vern Buchanan (R-FL) and is currently in committee, meaning it has not yet been debated or voted on by the full House.
CRS Official Summary
Performing Artist Tax Parity Act of 2025This bill increases the income limit and makes other modifications to the above-the-line tax deduction for business expenses of qualified performing artists. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)Under current law, a qualified performing artist (who may deduct certain business expenses from gross income) is defined as an individual who (1) performs services in the performing arts as an employee for at least two employers during the tax year and receives at least $200 from each employer (minimum payment), (2) has business deductions attributable to such services exceeding 10% of the gross income received from such services, and (3) has adjusted gross income of $16,000 or less.The bill modifies the definition of a qualified performing artist (for purposes of the business expense deduction) to eliminate the $16,000 adjusted gross income limitation and increase the minimum payment amount to $500 (adjusted for inflation beginning in 2026).However, under the bill, the tax deduction for business expenses of qualified performing artists phases out for individuals with gross income exceeding $100,000 (or $200,000 for joint filers) such that the tax deduction completely phases out for individuals with gross income exceeding $120,000 (or $240,000 for joint filers). (The phase-out threshold is adjusted for inflation beginning in 2026.)Finally, the bill provides that commissions paid to a manager or agent by a qualified performing artist are deductible business expenses.
Latest Action
Referred to the House Committee on Ways and Means.