Issue link: https://digital.copcomm.com/i/964761
SAGAFTRA.org | Spring 2018 | SAG-AFTRA 31 For some, the right approach may be to branch out into side gigs that don't violate SAG-AFTRA's Global Rule One, if they are not doing that already. For instance, actors could do modeling work or teach classes. That could also be the case for SAG-AFTRA's broadcaster members, who are considered employees of their respective stations or companies. If a member works as a DJ at a function, they could deduct the cost of their airfare to get to the event since it had nothing to do with their direct employment and they were functioning as an independent contractor. Alan Markle, a partner of San Francisco Bay Area CPA firm Wilson Markle Stuckey Hardesty and Bott, which specializes in assisting performing artists, said this coming tax year will be a difficult one for many of our members. If your income isn't high enough that incorporating makes financial sense for you, picking up some side gigs may be the best option. "I've wrestled with this a lot. It's not easy. For the people who can't incorporate, their best bet is to try and figure out if they can do some sort of self-employment work that would allow them to allocate these expenses — that could even be teaching," he said. Most SAG-AFTRA recording artist members make their living through royalties and advances. They may still be eligible for some business deductions depending on the nature of their work with the record label. Mike Vaden, a Nashville-based principal at the Elliott Davis/Vaden Group, said that for all members, how much they owe could depend heavily on personal factors. The new code does away with personal exemptions, so a member with modest income and a large family could be hit particularly hard. Whether the taxpayer is single or filing jointly with a spouse will have an impact. Also, anyone who gets divorced after 2017 will no longer be able to deduct alimony payments. But it's not all bad news. Tax rates have been lowered across the board, and the seven brackets have been readjusted, so some people will come out ahead — particularly if they have high incomes. A lot is changing this year, and members shouldn't wait until the last minute to find out what they should have done. A bit of planning ahead could pay dividends next year. Check with a tax professional. "Everybody needs to look at their own situation and be prepared for it," Vaden said. WHAT'S VITA? The Volunteer Income Tax Assistance program was created by The Actors Fund to provide free income tax preparation help to low and moderate income entertainment industry individuals and families in Los Angeles and New York. Check actorsfund.org/ workshops for a calendar of events. In addition, SAG-AFTRA locals across the country hold tax workshops. Check your local's events page on sagaftra.org to find out when one is taking place in your vicinity.