Bill > HR721

This bill modifies the tax treatment of expenses for performing artists by making several key changes to the Internal Revenue Code. Specifically, the bill increases the adjusted gross income threshold for performers to claim above-the-line deductions for work-related expenses, introducing a phaseout mechanism where deductions are reduced by 10 percentage points for every $2,000 (or $4,000 for joint returns) that a taxpayer's gross income exceeds $100,000. The bill also includes a cost-of-living adjustment provision that will automatically increase this threshold annually starting in 2026. Additionally, the legislation clarifies that expenses can include commissions paid to managers or agents, and raises the threshold for determining "nominal employers" from $200 to $500, with similar annual cost-of-living adjustments. These changes are designed to provide more financial flexibility and tax benefits for performing artists, recognizing the unique economic challenges of working in the performing arts. The provisions will take effect for taxable years beginning after December 31, 2024, giving performers new opportunities to manage their tax obligations more effectively.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/721/all-info