ARTS + TAXES: A FRESH ARTS CHEAT SHEET
Yes, it’s true. If you’re earning income from your creative work, the IRS generally considers your practice a small business. That means many of the costs that go into making and sustaining your work may count as business expenses.
If you’re not sure whether your work is considered a business or a hobby, you’re not alone. It can be a little confusing. It’s worth taking a look at IRS guidelines and resources like Texas Accountants and Lawyers for the Arts (TALA) to better understand where you fall.
At a basic level, the IRS defines business expenses as the costs of doing your work with the intention of making a profit. To qualify, an expense should be both ordinary, meaning it’s common in your field, and necessary, meaning it’s helpful and appropriate for your practice.
General Tax Tips
Track all income, even if you don’t receive a 1099.
- Grants and stipends
- Artwork sales and commissions
- Teaching, performances, and workshops
- Payments via cash, Venmo, PayPal, etc.
- Even small or informal payments count as income and should be tracked.
Keep all receipts for anything you may claim as an expense!
- Save recepit or invoice digital copies (Dropbox, Google Drive)
- Take photos of receipts and email them to yourself or save them in phone notes
- Keep simple, consistent records as much as possible
Establishing a reliable record-keeping process for you is key and is even a defining factor in how the IRS determines you as a business: “Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.”
Stay Organized all year (not just at tax time!)
- Use a spreadsheet or simple accounting tool
- Keep business and personal finances separate if possible
- Track income and expenses monthly, not just at tax time
1099s + New Reporting Rules (for 2026)
If you earn income as an artist, you may receive a 1099-NEC (Nonemployee Compensation) or 1099-MISC from organizations or clients who pay you above a certain threshold.
Starting January 1, 2026, the reporting threshold for both 1099-NEC and 1099-MISC increases from $600 to $2,000 (for the 2026 tax year, filed in 2027). This change was enacted through the One Big Beautiful Bill Act (OBBBA) in July 2025 and will be adjusted for inflation in future years.
What this means for artists:
- For 2025 Taxes, you may still receive a 1099 for all work over $600.
- After this year, you may receive fewer 1099s for smaller payments
- You are still required to report all income, even if you do not receive a 1099
- Payments through platforms like PayPal, Venmo, or Stripe may be reported separately
If you pay collaborators or contractors:
- You may need to issue a 1099 if payments meet the new threshold
- It’s a good practice to collect a W-9 from anyone you pay
Bottom line:
A 1099 is just a record of income, not the full picture. Always track your income and expenses, regardless of whether you receive a form.
Deductibles to Consider
OFFICE SUPPLIES/MATERIALS
Printing and office-related costs that support your creative practice may be deductible. This can include everyday supplies like paper, ink, and printer materials, as well as trips to printing places like FedEx, Staples, Copydotcom, etc.
Common examples include:
- Postcards, flyers, and posters
- Business cards and signage
- Exhibition materials and labels
- Stationery and other admin supplies
If it directly supports how you create, promote, or present your work, it may qualify. Just keep those receipts!
SOFTWARE + APPS
Have a subscription to Adobe Creative Cloud? How about a photo editing app on your phone? Have a Link Tree for your business Instagram? Any application you use to produce a finished product, market your work or services, or manage your business can be deducted as a business expense.
This can include:
- Accounting tools (QuickBooks, Wave, etc.)
- Creative software (Canva, Adobe Creative Cloud, design or photo/video editing apps)
- Social media and marketing tools (Linktree, scheduling platforms, email marketing)
If you use these tools to produce your work, run your practice, or stay organized, they likely qualify.
WEBSITES, DOMAINS + HOSTING
Your online presence is part of your creative practice, and related costs may be deductible.
This can include:
- Website platforms (Squarespace, Wix, etc.)
- Domain names (GoDaddy)
- Web and email hosting
- Paying a designer or developer to build or maintain your site
If your website helps people find your work, contact you, or engage with your projects, it counts as part of your business.
SUPPLIES + MATERIALS
Materials and supplies used in your creative practice may be deductible. This looks different for every artist.
Examples include:
- Visual artists: paint, canvas, tools, framing materials
- Musicians: instruments, recording gear, sound equipment
- Performers: costumes, props, rehearsal materials
- Writers: notebooks, paper, pens, research materials
- Conceptual or multidisciplinary artists: any materials used to realize your ideas
If you’re using it to create your work, it likely belongs here.
EQUIPMENT + TECHNOLOGY
Larger tools and equipment that support your practice may also qualify.
Examples include:
- Laptops, tablets, and accessories
- Cameras, audio equipment, or other production tools
- External hard drives, monitors, or specialized gear
If the equipment is essential to producing, documenting, or sharing your work, it can be considered part of your business expenses.
RESEARCH & EXPERIMENTAL COSTS
Expenses related to developing ideas, exploring new techniques, or deepening your creative practice may be deductible.
This can include:
- Books, publications, and research materials
- Museum, gallery, or performance tickets used for research or inspiration
- Workshops, labs, or informal learning experiences
- Materials used for testing, prototyping, or experimenting
- Time and resources spent exploring new directions in your work
If the expense supports your creative development or helps move your work forward, it may qualify as part of your practice.
CONTRACT SERVICES/ CONTRACT WORK
Professional Services/Consultants
This can include:
- Legal services: Consulting a lawyer for contracts, usage rights, or fair use
- Accounting and tax services: Hiring an accountant or using tax software like TurboTax
Collaborators and Contracted Creative Work
If you pay other people to help bring your project to life, those costs may be deductible.
This can include paying:
- Collaborating artists, performers, or writers
- Designers (graphic, web, lighting, set, etc.)
- Photographers or videographers for documentation
- Technicians, fabricators, or production support
- Workshop facilitators or teaching artists
- Editors, curators, or project consultants
If you’re using grant funds or project income to compensate others for their contributions to a public-facing project, event, or body of work, those payments are typically considered part of your project expenses.
A few tips to keep in mind:
- Keep invoices and payment records
- Collect a W-9 from anyone you pay
- You may be required to issue a 1099 if payments meet the reporting threshold
FEES (Submissions, Exhibitions, Opportunities)
Paid a fee to participate in an art market or exhibition? Counts as a business expense! Typically, fees you pay to share, present, or advance your work may be deductible.
This can include:
- Submission fees for journals, magazines, contests, and residencies
- Juried exhibition or application fees
- Fees to participate in art markets, fairs, or shows
These costs are often part of building visibility, getting your work seen, and accessing opportunities in your field.
PROFESSIONAL DEVELOPMENT
Expenses that help you maintain or improve your skills in your current practice may be deductible.
This can include:
- Workshops, classes, or trainings
- Conferences, festivals, or convenings
- Registration or Professional Membership fees and related costs
If the experience directly supports your growth as an artist or helps you stay active in your field, it likely qualifies.
Examples:
- Taking a writing workshop to strengthen your craft
- Enrolling in a ceramics class to learn a new technique
- Attending a conference to network, connect, and engage with peers
- Event your Fresh Arts Membership fees (wink, wink)
As long as it relates to your current work, it may count as a business expense.
TRAVEL EXPENSES
If you drive as part of your creative work, those miles may be deductible.
This can include travel to:
- Meetings, rehearsals, or job sites
- Studios, galleries, or performance venues
- Workshops, conferences, or events
- Supply runs (yes, even those trips to Home Depot or the art store)
Those miles can really add up over the year, so it’s worth tracking them!
How to track:
Keep a simple log (notes app or notebook) with:
- Date
- Where you went
- Purpose of the trip
- Miles driven
At the end of the year, total your miles and multiply by the IRS standard mileage rate for that year to calculate your deduction.
More info:
HOME OFFICE/STUDIO
You may be able to deduct a portion of your home as a business expense if you use it regularly for your creative work.
In general, your space may qualify if:
- You use it consistently for administrative or creative work (emails, planning, editing, etc.)
- It is your primary place for managing your artistic practice
- You don’t have another fixed location where you do this work
If your space qualifies, there are typically two ways to calculate the deduction: a simplified method or actual expenses (based on a percentage of your rent, utilities, etc.).
For more details, you can review IRS guidance here:
- https://www.irs.gov/publications/p587#en_US_2020_publink1000226317
Tax Filing Assistance
If you are using any tax filing help, make sure to call ahead and ask if any of the preparers on call have experience working with and/or are able to work with artists and their unique needs as a business. Tax specialists have areas of expertise (such as investments, retirement, real estate, etc.), and it’s important for you to know if your tax preparer can assist you and your art practice in the best way possible.
Free Tax Support*
- https://www.bakerripley.org/services/baker-ripley-tax-center
- http://www.beyondcareers.org/current-events/
- http://www.stcl.edu/academics/legal-clinics/
- https://www.uhd.edu/academics/business/acci/vita/Pages/default.aspx
- https://www.mamhouston.org/taxes
*Each service has different income levels to qualify.
Free/Paid Tax Services*
Keep in mind that if you use a paid service, ask how much they will charge you to file (they may charge you as a small business, for example); do not assume you will be charged the lowest amount as an individual.
- https://www.hrblock.com/
- https://www.jacksonhewitt.com/file-taxes-options-products/get-a-tax-pro-at-home/
- https://turbotax.intuit.com
*Some places offer free services up to certain income levels and/or prerequisites.