This bill changes how employed performing artists can deduct their work expenses on their taxes. It lets more artists subtract these costs from their income before calculating adjusted gross income, and it sets new income limits where the deduction fades out. It also makes clear that commissions paid to a manager or agent count as deductible expenses.

Key points

• Who is affected: Employed performing artists who meet the “qualified performing artist” rules (for example, you worked for at least two employers and had work expenses over 10% of the income from those jobs).
• What changes:
  • The old $16,000 adjusted gross income cap is removed. Instead, the deduction starts to phase out at $100,000 of gross income ($200,000 for joint filers) and is fully gone at $120,000 ($240,000 joint). These amounts will rise with inflation starting in 2026.
  • The minimum amount you must earn from each employer to qualify increases from $200 to $500, with inflation adjustments beginning in 2026. Related “nominal employer” thresholds are updated to $500 and indexed, too.
  • Commissions paid to a manager or agent are treated as deductible work expenses.
• When: Applies to tax years starting after December 31, 2024 (the 2025 tax year). Inflation adjustments begin in 2026.