Is there something that you have to do every year? Mine involves making sure I take advantage of this $300K tax loophole. Does your city have one?
Hundreds of the “early adopters” of Chip’s Money Tips are show-folk. You know the triple-threats and hyphenates of which I speak. This is my annual shout-out to the buskers, minstrels and long-hairs; the thespians, scribes and head-honchos who live and/or work in Los Angeles.
This is a reminder that if you received money via 1099 (not W2 income), the City of Los Angeles wants a taste. You can have up to $300K in 1099 earnings and have all of that money avoid the tax via the Creative Artist Exemption. Here’s the catch: You have to sign up for it every year to get it every year. Otherwise, you owe this tax!! Some people choose to fly under the radar and hope not to get caught. You have through February 28, 2017 to register.
Click here to read more about the $300K Creative Artist Exemption. Talk to your accountant and watch my video about it from a few years ago (below). You actor types should also check out my posts on How I Found $3,200 MIA (Missing in Acting) and How to Move Money to Qualify for SAG Health Insurance.