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 deduct their work-related expenses from their taxes. Currently, performers (like actors, musicians, dancers, etc.) can only claim certain business expenses if they earn $16,000 or less per year—a limit that hasn't been updated in decades and excludes most professional artists.
The bill would remove this income cap entirely and increase the minimum payment threshold from each employer from $200 to $5,000, better reflecting today's economy. **Who it affects:** Performing artists who work for multiple employers would benefit most—this includes actors, musicians, dancers, and other entertainment professionals who piece together income from various gigs. Currently, successful performers are locked out of these deductions simply because they earn too much, even though they incur legitimate business expenses like instrument maintenance, costumes, travel, and training. **Current status:** The bill was introduced by Senator Mark Warner (D-Virginia) and is currently in committee, meaning it hasn't been debated or voted on by the full Senate yet.
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
Read twice and referred to the Committee on Finance.