Actor

[Actor33]

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. 

[Mike9241]

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]

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

[ClossonKM]

The replies are NOT making sense. I ONLY received residual income in 2020 via W-2 (under $500)- with taxes removed from CA even though I live in another state, PLUS received a 1099-MISC (BOX 2) for foreign royalties under $11. and it is messing with the e-file, constantly asking me about my non-existent business...

I understand e-file is just a machine, but I've been on phone hold for 50 mins and it's after 6pm, so I'm getting worried that some snakey moves are being made by SAG/AFTRA.

This shouldn't be so difficult.

[ClossonKM]

And- after 58 mins on hold, TurboTax disconnected my call. 

Nice. Eff you.

[RG5656]

I know this is an old post, but it still comes up in a general search for W2 information, and the answers here are so completely incorrect, that I have to speak up.

As an actor, SAG-AFTRA is not your employer. Unless you go into an actual SAG-AFTRA union office, sit at a desk, drink their coffee, and answer phones or whatever, you are not a SAG-AFTRA employee. SAG-AFTRA is our union. They are a clearinghouse for residual payments, which is why you get checks in the mail from the Union, with a SAG-AFTRA cover statement with the same info on it as the paystub. Producers and payroll services mail your residuals to the Union, then SAG-AFTRA processes it to make sure the producers paid the appropriate amount into the health and retirement funds as required by the contract. Then the Union sends it to your current address on file. The employer who issues your W2 in January is the production company or payroll company standing in as employer: Entertainment Partners, WB, Disney, etc. If you have all your paystubs still (it's a good idea to keep them to make sure you got all your W2s), they should add up to the total on the W2. Session earnings and maybe original run residuals will come to you or your agent directly. Again, your agent is not your employer in this case. The subsequent residuals will generally go through the union for all the years to come. You will only get one W2 per employer, though perhaps 1099s for Foreign Royalties, which yes, are a pain and add to your tax preparation cost. For a small-earnings actor, processing the 1099 will often cost more than the earnings listed on it. It seems pretty unfair to me.

ALSO, if you get a 1099 for acting work (not just Foreign Royalties), you are considered a local small business and if you're in the City of L.A., you also have to file and annually renew your City Business Tax License. There is no fee/tax if you file on time and don't make much money (I think you have to pay if you make over $100,000 that year...but don't quote me on it.) If you DON'T register and renew, then you owe the taxes and late fees and penalties, regardless of how little you earned as an independent contractor (1099).

Anyway, don't listen to people who tell you that SAG-AFTRA is your employer or owes you a W2. Maybe they can help you find it, if you ask nicely, but it's from the actual employer, not them.