Bill > S1121

This bill amends the Internal Revenue Code to provide tax relief and expanded deduction opportunities for performing artists. Specifically, it increases the adjusted gross income threshold for performers to claim above-the-line tax deductions for work-related expenses, introducing a phased reduction mechanism where deductions decrease by 10 percentage points for every $2,000 (or $4,000 for joint returns) of income above $100,000. The bill also includes a cost-of-living adjustment provision that will automatically increase this threshold annually based on inflation, starting from 2025. 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 inflation adjustments. This means performing artists will have more flexibility in deducting work-related expenses and will be able to account for rising costs over time, potentially providing significant financial benefits to professionals in the performing arts who often have substantial out-of-pocket career expenses. The changes will apply to tax years beginning after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1121/all-info