Am I considered an employee or self-employed?

It depends.

• If you’re paid on payroll with taxes withheld, you’re a W-2 employee.

• If you’re paid without withholding and receive a 1099-NEC, you’re considered self-employed for tax purposes. Many film/TV workers have a mix of both.

What taxes do I need to pay as a freelancer?

As a 1099 contractor, you’ll owe:

• Federal income tax

• State income tax (if applicable)

• Self-employment tax (15.3% for Social Security & Medicare)

  Because no taxes are withheld, you’ll likely need to make quarterly estimated tax payments.

What expenses can I deduct?

Common deductions include:

• Union or guild dues (SAG-AFTRA, DGA, WGA, IATSE, etc.)

• Agent and manager commissions

• Headshots, reels, and professional websites

• Acting, stunt, or voice training

• Costumes, props, and makeup (if required for work)

• Travel, lodging, and per diem not reimbursed

• Equipment (cameras, sound gear, editing software)

• Home office or studio space

• Cell phone, internet, and professional subscriptions

Can I deduct meals and travel?

Yes, if work-related and not reimbursed. Meals with clients, agents, or during business travel are typically 50% deductible. Keep receipts and note who/what it was for.

What if I work in multiple states?

Many productions film in different states. You may need to file nonresident state returns in each state you earned income, plus a resident return in your home state. Some states offer credits to avoid double taxation.

How do tax credits affect me?

Film productions may qualify for state tax incentives, but these usually benefit the production company, not individual workers. However, your income may be higher if productions are drawn to tax-credit states.

Do I need to track per diems?

Yes. If per diem covers meals and lodging and is not included on your W-2/1099, you don’t need to report it. If it’s in your taxable wages, you may deduct actual expenses if higher.

Should I form an LLC or S-Corp?

If you’re consistently working as a freelancer with significant income, forming an LLC with S-Corp election can help reduce self-employment tax by splitting income between salary and distributions. Many actors, producers, and crew with steady contract income use this structure.

What records should I keep?

Keep contracts, call sheets, invoices, pay stubs, receipts, mileage logs, and proof of union/guild payments. The IRS often audits entertainment professionals because of mixed deductions.

Can I deduct unreimbursed employee expenses if I’m a W-2?

Since 2018, most employees can’t deduct unreimbursed expenses at the federal level. However, some states (like California and New York) still allow these deductions.

What about retirement savings?

Freelancers can use SEP IRA or Solo 401(k) accounts with high contribution limits. Employees may have union pension contributions. Combining strategies helps build long-term financial security.