When you pursue a career in acting or modeling, you step into a world that’s both creatively fulfilling and administratively unique. One of the most important aspects of this industry is understanding your role as an independent contractor. Let’s break down what this means, your responsibilities, and how you can set yourself up for success both on and off the set.

What Does It Mean to Be an Independent Contractor?

As an independent contractor, you are your own boss. This means that while the talent agency helps you find opportunities and represents your interests, you are not an employee of the agency. Here are some key points to remember:

• Permits and Insurance: If you’re not working under a SAG-AFTRA contract, you are responsible for obtaining any legal permits or specialty insurances required for the job. For instance, insurance might cover you in the event of an on-set injury or other unforeseen issues. Talent under 16-years-old need a Missouri childrens entertainment work permit to participate on set regardless of the project's union status. 
• No Employer Benefits: Unlike traditional employees, you will not receive benefits such as unemployment insurance, health insurance, or retirement contributions from the agency.
• Tax Responsibility: As an independent contractor, you must handle your own taxes. More on that below.

Taxes as an Independent Contractor: What You Need to Know

Acting isn’t like other jobs—and that applies to paying taxes, too. As an actor or model, you’ll receive a 1099 form for each source of income not under a SAG-AFTRA agreement. This form documents the income you’ve earned as an independent contractor, and it’s sent to both you and the IRS.

Here’s what you need to know about taxes:

• Report All Income: You’ll need to report income from acting gigs, modeling jobs, survival jobs, and even royalties.
• Pay Self-Employment Taxes: Since you’re not an employee, no taxes will be withheld from your payments. This means you’ll need to set aside money to cover federal, state, and local income taxes, as well as self-employment taxes (Social Security and Medicare).
• Filing Deadlines: Don’t forget that as an independent contractor, you’re often required to pay quarterly estimated taxes to avoid penalties.

Common Tax Deductions for Actors and Models

The good news is that being an independent contractor allows you to deduct certain expenses that are necessary for your work. Here are some common deductions to consider:

• Website and Marketing Expenses: If you pay for a personal website, headshots, or promotional materials, these can be deducted.
• Business Travel: Travel expenses for auditions, shoots, or networking events may qualify as deductions. Keep records of airfare, mileage, lodging, and meals.
• Supplies and Equipment: Items like makeup, wardrobe, props, or even a microphone for voice-over work can be deducted if they are essential to your job.
• Classes and Coaching: Acting or modeling workshops, self-tape studios, or coaching sessions are legitimate deductions.
• Union Dues: If you’re a SAG-AFTRA member, your annual dues and initiation fees are deductible.

Pro Tip: Keep detailed records of all receipts and payments throughout the year to make tax season easier and to protect yourself in case of an audit.

Specialty Insurance: Why It’s Important

If you’re working on a non-union project, specialty insurance can be a valuable investment. While SAG-AFTRA contracts often provide coverage, non-union jobs typically do not offer the same protections. Here’s why you might want to consider specialty insurance:

• On-Set Coverage: If you’re injured during a shoot, specialty insurance can help cover medical expenses.
• Liability Protection: In the event of accidental damage to property or equipment on set, this insurance protects you from personal financial liability.
• Income Protection: Some policies offer coverage for loss of income if an injury or illness prevents you from working.

Having the right insurance gives you peace of mind and ensures you’re protected in a profession where risks can vary depending on the project.

Final Thoughts

As an independent contractor, you have the freedom to pursue diverse opportunities and chart your own career path. However, with that freedom comes responsibility. From managing taxes to understanding insurance, it’s essential to stay informed and proactive about the business side of your career.

At TalentPlus, we’re here to support you every step of the way. Make sure to read our agency's independent contractor's agreement carefully and reach out with any questions. By staying organized and prepared, you’ll set yourself up for long-term success in the exciting world of acting and modeling.