Actors are pushed into debt at alarming rates, and taxes have increased on average by $3,800 per person, according to research by the Enrolled Agents and accountants Bambridge Accountants New York.
· “Trump and taxes” blamed for surge in the number of actors facing massive tax increases
· Actors pushed into debt, living on credit cards after 2017 Tax Cuts and Jobs Act
· Taxes for actors have increase on average by $3,800 per person according to survey
· Although 65% of individuals are better off after the tax changes, actors are often in the 6% of people now paying more tax
The firm, which specializes in handling the tax affairs of actors in New York and California, has seen a spike in calls from actors unable to pay their taxes and unable to provide for their families. During 2019, it typically received just one such inquiry a week. Yet in January 2020 that rate rocketed to one a day, and as tax season continues it has increased even further.
After The Tax Cuts and Jobs Act came in to force in 2018, many actors have been unable to claim their work expenses, leading to tax bills thousands of dollars higher.
In 2017, President Trump announced “the biggest tax cuts and reforms in American history” with “tremendous relief for the middle class and small business.”
Although 65% of individuals have saved taxes after the changes, actors often fall into the smaller group of 6% now actually paying more tax.
In June 2019, a bill was placed before Congress for the problem to be corrected. The Performing Artist Tax Parity Act would allow single actors earning up to $100,000 and married filing jointly up to $200,000 to claim expenses and reduce the additional taxes.
Alistair Bambridge, partner at Bambridge Accountants New York, explains: “Actors were already struggling to break even, taxes have now increased significantly and for many actors the future looks bleak.
“So the surge in actors in poverty speaks volumes about how strongly many of them are affected by two things – Trump and taxes.
“Donald Trump’s election promised tax cuts and opportunities, but for actors, they have been left with unfair new tax rules. Expenses that they need to work as an actor like headshots, travel and agent fees are no longer deductible. These expenses can be up to 30% of their income and there is no relief.
“Actors have been marginalized by the tax changes and they are just looking for fairness and the playing field to be even.
“The Performing Artist tax Parity Act will bring much-needed relief to these hard-working families and it should be a priority to be passed in 2020.”
Contact Alistair Bambridge, alistair@bambridgeaccountants.com, 646 956 5566.
Bambridge Accountants New York is a New York-based firm specializing in actors.
Press Release Service by Newswire.com
Original Source: Living Below the Breadline - Surge in Actors Living in Poverty Because of the 'T' Word. And No, It's Not Trump
