Two Tax Deductions You Have Never Heard Of

Qualified Performing Artists (QPA)tax-deductible and interest and dividends earned in that
This hidden tax deduction is specially designed forplan are tax-free. If you take money out of the plan
Performing Artists and allows them to claim some offor qualified medical expenses (see IRS Publication 502
their living expenses to offset their income. If you are afor details) you will pay not tax. To qualify for the
performing artist with no more than $16,000 in adjustedHealth savings accounts (HSA) Tax deduction you
gross income; at least two W-2s, each paying at leastmust be enrolled in a high-deductible health insurance
$200, from entertainment-related companies; andplan approved by the Internal Revenue Service and
performing-related deductions equal to at least 10you cannot be covered by HMO or PPO. For 2010 the
percent of your adjusted gross income you canmaximum deduction is $3,050 for single taxpayer,
deduct your acting-related expenses as an adjusted$6,150 for family and $1,000 for catch-up contributions.
to your income in additional to the standard deduction.You report this expense on IRS form 1040 line 25 and
So, if you meet the above criteria you can TheIRS Form 8889.
Qualified Performing Artists (QPA) taxConclusion
Health savings accounts (HSA)While these two deductions are rarely used they can
Health savings accounts (HSA) is a pre-tax savingbe beneficial for anyone who meets their
plans specially designed for medical and dentalrequirements.
expenses. Your contributions to a qualified HSA are