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Actor33
Level 1

Actor

What is the difference between my W-2 from Entertainment Partners and my Residuals from SAG/AFTRA? Are my residuals included in my w-2? And if so, do I need to report my residuals income? And if I do, do I calculate them by the Gross or paid amount Net? To explain again, I have a W-2 from entertainment partners for 2020, and I also have residuals that were paid to me through out the year 2020 .... first time doing my taxes myself, I understand that I need to make my acting a business, .but I'm confused on the rest. 

2 Replies
Mike9241
Level 6

Actor

since there are two different payors I doubt your residuals would be on the w-2. you could call to check.  you should have received form 1099-NEC if you got more than $600 in residuals.  anyway,  if they aren't on the w-2 they get reported on schedule C. your w-2 gets reported as a w-2. residuals should be reported gross. what were the deductions for? that determines where to report them. 

 

 

ThomasM125
Employee Tax Expert

Actor

Your W-2 form will report wages from services you performed, whereas residuals come from the sale or use of artistic endeavors you participated in.

 

Typically, as an artist you receive wages to perform and are paid based on a flat fee or hourly rate. Then, if that performance is recorded and sold, you would get paid not for a service you are providing to the individual who purchased or rented the recorded performance, but as a passive owner of that work of art.

 

Your residual income would not likely be reported on your W-2 form, but it may be reported on a form 1099-NEC or 1099-MISC.If it was reported on any one of these forms, you would look for that form entry in the Wages and Expenses section of TurboTax, by looking for the form number or description of the type of income you are reporting. You do need to report the residual income on your tax return.

 

You need to report the amount listed on your form 1099 as your income, but may deduct expenses associated with it if it is reported on a form 1099-MISC or 1099-NEC in most instances.

 

[Edited 3/2/21 at 7:33 PM EST]

@Actor33

 

 

 

 

 

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