I know Turbo Tax is designed for people who prefer to do their own taxes, but is there a software specifically geared for ACTORS (since we have to do special deductions)?

I'm an actor, and my husband is a musician. So some of our deductions get tricky. But I still would prefer to do our own taxes rather than go to an accountant. Any thoughts/recommendations?? THANKS!!

I think TurboTax DOES have a section for actor expenses - I think their software really is designed to cover ANY possible income contingency. But check with the site to make sure.

I have used Turbo Tax in the past and currently use Tax Cut and have no problem with the deductions for artists nor the Schedule C. I am also certified by the IRS as a volunteer Tax preparer, what deductions are you saying are tricky?

BOB C: Since hubby has a home studio to make his music, we were wondering how much monthly rent he could deduct .

Does he have to make a minimum as a musician to deduct part of the rent?

I have heard conflicting thoughts on this. Some people say there is a minimum you have to make, or it is considered a "hobby". Others say being a musician who makes money off music... it doesn't matter how much (especially in the first few years). You're just like any "start-up" company, operating with LOSSES to purchase software, equipment, etc, in the plan to make more money in future years.

HELP!

Thank you, Bob C and TMR!!

There is no minimum to make to allow deductions for use of the home in business, although if a profit is not made at least once in a three year period, the IRS MAY consider it a hobby and disallow the deduction. I am assuming you meet the requirements for a deduction, that is; the studio is used exclusively and regularly as a place of business, (which a home studio would seem to fit this criteria)

As for calculating the amount of the deduction; it is relatively simple. Divide the square footage of the studio by the total square footage of the home or apartment. This is the total business usage. Divide the total rent by the business usage percentage.

Are you using Schedule C to report income from his business? If so you use Form 8829 to calculate this deduction. if you have any questions in this area, you can go to www.irs.gov and search for Publication 529.

If you are not using Schedule C and he is an employee using "Qualified Performing Artist" Credit then you must use Form 2106.

Many thanks, Bob!

You should have your own column on "Backstage"!!

You are most welcome!!