A Guide to Voice Actor Tax Deductions
- Tom Dheere
- Jan 18, 2022
- 4 min read
Updated: Sep 26
Your VO Business is a Business: Treat it Like One at Tax Time
Let’s be honest, nobody loves tax season. For freelancers and solopreneurs, the arrival of 1099s can bring a unique wave of anxiety. But I want you to reframe your thinking. Taxes aren't just an obligation; they're a part of your business strategy. Understanding the landscape of voice actor tax deductions is one of the most powerful things you can do to manage your cash flow and keep more of your hard-earned money.
Before we go any further, let’s get this out of the way: I am a voice over strategist, not a CPA or tax professional. This article is not legal tax advice. Its purpose is to help you get organized and prepare you for a productive conversation with a qualified professional who can give you advice tailored to your specific situation.
First Things First: The Non-Negotiables
If you're filing your taxes as a voice actor for the first time, it can be intimidating. But getting organized is the key to lowering your tax burden. Before you even think about specific deductions, make sure you have these bases covered:
Hire a Professional: If you don't have a CPA who specializes in freelancers or small businesses, find one. Ask for referrals from colleagues. The ROI on a good CPA is immense; they will save you far more money than they cost.
Track Everything: You can’t deduct what you can’t prove. Use an app, a spreadsheet, or accounting software to meticulously track all your income and, more importantly, all your business-related expenses. Keep those digital and paper receipts organized!
Understand Schedule C: As a sole proprietor, you will most likely file a Schedule C (Profit or Loss from Business) with your Form 1040. This is where you list your gross income and subtract your business expenses (deductions) to determine your taxable net profit.
Common Voice Actor Tax Deductions to Discuss with Your CPA
Ready to start itemizing? Here are some of the most common expense categories for voice actors.
Home Studio & Office Expenses
Your recording space is the heart of your business. As such, many of the costs associated with it are deductible.
Home Office Deduction: If you have a dedicated space in your home used exclusively for your VO business, you can claim this. You and your CPA can decide between the simplified method (a standard rate per square foot) or the actual expense method (deducting a percentage of your mortgage interest/rent, utilities, insurance, etc.).
Studio Gear & Software: That new microphone, interface, computer, or DAW is a business expense. These are typically "capital expenses." Depending on the cost, your CPA may advise you to either depreciate them over several years or deduct the full cost in the first year using the Section 179 deduction.
Utilities: A portion of your home's utility bills—like electricity and internet—can be deducted based on the percentage of your home used for your business.
Marketing & Professional Development
You have to spend money to make money. The costs of finding work and improving your skills are legitimate business expenses.
Website & Subscriptions: Your website hosting fees, domain name, P2P subscription fees, CRM software, and email marketing services are all 100% deductible.
Demos & Headshots: The cost of producing your demos and getting professional headshots is part of your marketing budget.
Coaching & Education: Voice over coaching, acting classes, business workshops, and any other training you take to improve your craft or business acumen are deductible.
Conferences & Networking: The costs for attending industry conferences (like VO Atlanta), including your ticket, travel, and lodging, are deductible.
Travel and Client-Related Costs
Business Mileage: Keep a log of the miles you drive to in-person auditions, recording studios, networking events, or client meetings. You can deduct this using the standard mileage rate set by the IRS.
Business Meals: Did you take a client or a potential collaborator out for lunch to discuss a project? You can generally deduct 50% of the cost.
Client Gifts: You can deduct up to $25 for gifts given to any single client per year.
Other Common (and Often Missed) Deductions
Health Insurance Premiums: If you're self-employed and pay for your own health insurance, you can likely deduct your premiums.
Professional Services: The fees you pay to your CPA, lawyer, or business consultant are deductible.
Bank Fees: Monthly service fees for your business checking account are a deductible expense.
Retirement Contributions: Putting money into a SEP-IRA or Solo 401(k) is a fantastic strategy. Contributions are often deductible, lowering your taxable income now while saving for your future.
Tackling your finances is a huge part of being a successful VOpreneur. Use this list not as a final say, but as a strategic tool to get organized. The more prepared you are when you meet with your CPA, the more effective—and profitable—that meeting will be.
QUOTE OF THE WEEK
If you can see your path laid out in front of you step by step, you know it's not your path. Your own path you make with every step you take. That's why it's your path. Joseph Campbell
Join me at an upcoming event
Here's what I've got going on in the next few months - register to attend and add your voice to the mix!
Study on your own time - download & watch VO How-to Videos
Use Promo Code GETMORE for 20% off 3 or more videos!
Paid Links
Grab Studio Gear
Want studio gear & reading recommendations? VIEW ALL
As an Amazon Associate, I earn from qualifying purchases.
Keep Going - Work with Me
Book a Strategy Session and get your VO business together!
Tom Dheere is the VO Strategist, a voice over business & marketing coach and demo producer since 2011. He is also a voice actor with over 25 years of experience who has narrated just about every type of voiceover you can think of. When not voicing or talking about voicing, he produces the sci-fi comic book Agent 1.22.
Comments