If you are new to the modeling industry or are an established fashion professional, we’ve set out some tips below for preparing your taxes.
1 – Income for models
As a self employed model, you will report all your business income on Schedule C in the tax return.
You should receive 1099s for your work and you can total those up and include as gross income.
You may also have employed work and you should receive W-2s which will be reported separately in the U.S. tax return.
2 – Expenses for models
The tax expenses you can claim in the fashion industry are unique and there are many that other professions can not claim.
Agent and manager fees – all fees from the modeling agency can be claimed as an expense on your Schedule C.
Travel – models work throughout New York and other cities and travel to those jobs is allowable
International travel – flights, accommodation, Uber, car hire, AirBnB, meals will all be allowed while you are away from home
Advertising – any web site costs, photos, and other promotion for your modeling career can be claimed
Personal appearance – if you are required to maintain a professional appearance, costs of hair, cosmetics and other beauty costs can be claimed
Research – books, magazines and website subscriptions
Professional fees – legal fees and if you have a model accountant
3 – Corporations for models
For high levels of income, top models will use corporations to reduce their taxes.
As you business grows, if you need an assistant you can hire them as an independent contractor through the corporation.
4 – Estimated taxes for models
If your taxes are $1,000 or more, you will need to make estimated taxes in advance to the IRS.
5 – Models working overseas
Many fashion designers will require that you travel outside of the United States. In that case, you may pay taxes overseas, or there may be withholding tax by the fashion company.
You will still need to report that foreign income in the U.S., but you can claim the foreign tax credit against any U.S. tax on the same income.
6 – Help with taxes for models
You may want to discuss your situation with a fashion accountant who will be able to answer any queries and discuss your business model. Bambridge New York accountants specialize in the fashion industry and will be happy to help with your taxes.