There is some precedent for
being able to deduct the cost of movie tickets as research when working in the
film industry. The expense would be
included as a Miscellaneous Business
Expense if you are a sole proprietor filing Schedule C or as an Unreimbursed
Employee Expense on Form 2106 if you are an employee with a W-2.
Before you can claim the
expense you will need to have detailed
records and receipts. When tax
returns are examined by the IRS with this type of expense for a person working
in the film industry, they are expecting thorough records and receipts that explain the business need for seeing
each movie. There should be a clear tie to your particular work and
that tie must be shown through documentation
and notes included with the receipts and ticket stubs.
If you are a sole
proprietor filing Schedule C, follow these steps to
report the expense (using the Home & Business version of TurboTax):
- Go to Business > Business Income and Expenses > Profit or Loss from Business
- Click Update or Edit beside Profit or
Loss from Business
- On the summary
page listing the business(es), click Edit
beside the business name
- Scroll to the Business Expenses section, click Update or Edit beside Other
Common Business Expenses
- Scroll to the
bottom of the screen and click Update
or Edit beside Other Miscellaneous Expenses
- This will allow
you to enter a short description and
an amount for the expenses you incurred
- Click Continue and the total amount will
be included on Schedule C line 48 as an itemized list and then it will
also transfer to Schedule C line 27a
If you are an employee with a W-2 filing Form 2106 Unreimbursed
Employee Business Expenses, follow these steps to report the expense (click on the thumbnail picture below for
a reference to get started):
On the top row of the
TurboTax online screen, click on Search (or for CD/downloaded TurboTax
locate the search box in the upper right corner)
This opens a box where you
can type in “2106” (be sure to enter exactly as shown here) and click
the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will
give you an option to “Jump to 2106”
Click on the blue “Jump
to 2106” link
- As you go through this section there will be a screen toward the end that will allow you to enter a description and amount for your expenses that are not categorized anywhere else
Expenses reported on Form 2106 are reported on Schedule A Itemized
Deductions in the section subject to the 2% of your Adjusted Gross Income (AGI)
limitation. If you are using the
standard deduction you will not see a change in your Federal refund/balance due
amount, but your state return may be affected.
