MA DOR Withholding Taxes on Performers and Performing Entities Guide

Venues, promoters, and others who compensate performers and performing entities in Massachusetts can learn about their tax withholding and earned income obligations.

Updated: June, 2025

Introduction to Performer Withholding

Individuals who earn income from performances in Massachusetts, whether in athletics, entertainment, or education, are subject to Massachusetts personal income tax on that income.

The Performer Withholding Program, authorized under Chapter 262, § 21 of the Acts of 2004, was established to assist individuals in meeting their personal income tax obligations. The goal of performer withholding is the same as wage withholding: to withhold an amount substantially equivalent to the tax amount reasonably estimated to be due.

Performer Withholding Thresholds

Individuals or businesses (the “performer withholding agent”) that pay a performer or performing entity for one or more performances in Massachusetts during a calendar year are required to withhold tax from the payment if (1) gross payments for the performances during the calendar year (i.e., all payments made by one payer to the same performer or performing entity for performances during that year) exceed $5,000; or (2) they are a business that is tax exempt under IRC Sec. 501(c) and gross payments made by them for a particular performance exceeds $10,000. For purposes of clause (1), payments made to a performer or performing entity by different payers should not be combined to determine whether the withholding threshold has been reached.

Generally, the performer withholding agent must withhold tax on the gross amount paid to the performer or performing entity unless DOR approves a request for a reduction or waiver of withholding.

To learn more about performer withholding thresholds, see Directive 05-4.

Performer Withholding FAQs

Who is a performer, and what is a performing entity?

A performer may be an athlete, a paid entertainer, or a speaker. Included as performers are individuals paid to further an athlete’s, entertainer’s, or speaker’s performance, such as a coach, trainer, or crew member.

• An athlete is any sports figure who is paid to compete, demonstrate, publicly appear, or endorse merchandise.
• An entertainer or speaker may be an actor, singer, musician, dancer, circus performer, comedian, celebrity, or a public speaker or lecturer.

A performing entity is any entity that employs, engages, or comprises one or more performers.

• The performing entity’s legal classification does not affect the withholding requirement.
• The performing entity may be a corporation, pass-through entity, partnership, limited partnership, limited liability company, or any other legal entity.

How does a performer withholding agent comply with its withholding obligation? 

A performer withholding agent must register for Performer Withholding using MassTaxConnect  at least five business days before the agent submits their first report and withholding payment.

See the “Report, Pay, and Other Requirements” section below to learn more about reporting and paying withholding.

Register Your Business with MassTaxConnect   Video: How to Register a New Business in MassTaxConnect  Video Playlist: Business Actions (including registration) 

Who should withhold tax on performers and performing entities as a performer withholding agent?

• If the Massachusetts venue or the lessee of the venue where the performance takes place has a contract to pay the performer or the performing entity, the venue or the lessee of the venue should withhold.
• However, if the venue or its lessee is not a party to the contract with the performer or the performing entity, the promoter is responsible for withholding.

If there is no promoter or if the promoter is not a party to the contract, the withholder may be:

• the vendor selling merchandise for which a performer or performing entity will receive a percentage of the sales price,
• the payroll service provider making payments to the performer or performing entity or
• any other person or entity DOR designates who pays compensation for a performance.

If a performer or performing entity has more than one contract for the same date and venue, each contract may have a different withholding agent. The DOR will advise who the performer withholding agent(s) should be if the party or parties responsible for withholding tax need clarification regarding their withholding responsibilities.

If you have a question about your withholding responsibility:

• call DOR at [phone] or
• e-mail the performer withholding unit at [e-mail].

Payments that exceed the withholding threshold should not be made to a performer or performing entity unless:

• the required taxes have been withheld or
• the performer or performing entity requests, before the performance, that withholding be reduced or waived, and DOR approves this request.

Any person or entity making payment  to a performer or performing entity is responsible for ensuring proper withholding. Failing to withhold taxes appropriately may result in penalties and interest.

To learn more about performer withholding thresholds, see Directive 05-4.

Examples of Withholding Responsibilities

1. A circus comes to town every year for five performances. City Arena leases performance space to Trapeze Promotions, the promoter that arranges to bring the circus to town. Trapeze Promotions pays City Arena an amount based on a percentage of ticket sales. Trapeze Promotions pays the circus for the performances. Trapeze Promotions, the lessee of the venue, is the performer withholding agent because it has a contract with the circus, which is the performing entity. City Arena does not have a contract with the performers or a performing entity and does not withhold.
2. Sports Association rents the Richmond Country Club and sponsors a golf tournament there. Twenty professional golfers come to Massachusetts to participate in the tournament. Sports Association pays each golfer to participate. Sports Association must register as a performer withholding agent and withhold from each golfer.
3. Troupe, Inc., a theater company, brings a play to town. Performances are held at the City Theater, which has rented performance space to Troupe, Inc. for a flat rental fee. Thirty professional actors perform in the play; each actor is paid as an independent contractor. Troupe, Inc. must register as a performer withholding agent and withhold from each actor.
4. A Massachusetts radio station, WPER, promotes a semi-annual music and entertainment event. It hosts the event at the City Arena, which it has rented for the occasion. WPER contracts with four entertainers to perform at the four-hour event. WPER must register as a performer withholding agent and withhold from each of the entertainers.
5. The Extreme Automobile Association rents the Valley Exhibition Center for its automobile show. As part of the show, the association contracts with an actor from a weekly network television show to appear at the event. The actor is paid $15,000 for appearing. The Extreme Automobile Association must register as a performer withholding agent and withhold from the actor.
6. Cranium Computer Company holds its annual employee gathering at Banquet Hall, a local convention center. After dinner, Cranium Computer hires a magician to entertain its employees. Cranium Computer Company must register as a performer withholding agent and withhold from the magician.
7. Prize Fight Events, a boxing promoter, rents an auditorium in Milltown, Massachusetts, to hold an event called Thursday Night Fights. Prize Fight Events contracts separately with each of the eight boxers to pay purses ranging from $10,000 to $25,000 to participate in the event. Prize Fight Events must register as a performer withholding agent and withhold from each of the boxers.
8. Sports Memorabilia, Inc. sponsors a baseball merchandise and autograph signing event at the Chique Mall. Sports Memorabilia has a contract with the famous baseball player Johnny Great to appear and sign autographs at the mall for a fee of $10,000 and 30% of the gross sales from merchandise sold. Sports Memorabilia Inc. must register as a performer withholding agent and withhold tax from Johnny Great.
9. Lorna Leader, candidate for president, requests that her political action committee, Leader P.A.C., hire the band Gentle Breeze to perform at her fundraiser held at the Deluxe Hotel in Springfield. Leader P.A.C. pays the three-member band $20,000 to perform for two hours at the event. Leader P.A.C. must register as a performer withholding agent and withhold taxes from the three-member band.

Does the performer withholding agent have to withhold separate amounts for every member of a performing entity?

No.   The performing entity, not the performer withholding agent, is responsible for allocating the withheld amount to each member of its performing entity. In other words:

• If the withholding agent makes one payment to a performing entity for several performers who are members of that performing entity, it withholds one amount.
• If it pays two different performing entities for performances, it withholds an amount from the payment to each performing entity.
• If it makes two different payments to the same performing entity, it withholds an amount from each payment.
• However, if the performer withholding agent makes two separate payments for a performance, one to an individual performer, and one to a performing entity, it withholds the proper amount of tax from each payment.

See “What obligations does a performing entity have?” in the Report, Pay, and Other Requirements section below to learn more.

Example: 

• (a) The OneDahs, a five-member rock-and-roll band organized as a partnership, performs for one night at City Arena in a concert promoted by Beat Promotions. Pursuant to its contract with The OneDahs, Beat Promotions makes one payment to The OneDahs for their performance. Beat Promotions is required to withhold a single amount from its payment to the band.
• (b) The same facts above are true except that Beat Promotions cuts two checks, one for Flossie Nightingale, the lead singer, and another for the rest of the band. Beat Promotions should withhold separate amounts from each payment.

How much should the performer withholding agent withhold?

The tax required to be withheld by the withholding agent generally is the individual income tax rate multiplied by the gross payment to the performer or performing entity. Gross payment includes any compensation or reimbursements paid to the performer or performing entity for the performance (e.g., production, travel, catering, etc.) and one-third (1/3) of any receipts from the sale of merchandise sold by or on behalf of the performer or performing entity.  The tax required to be withheld may be reduced or waived, if the performer or performing entity requests a reduction or waiver of withholding at least 14 business days before the date of performance, and DOR approves the request in full or in part. DOR will send a Letter of Determination to the requestor, and a copy of any letter approving a request in full or in part to the withholding agent.

Examples of How Much Tax to Withhold

1. The band Blue Stream will perform at the Stadium in Massachusetts for one day. Big Events Promotions has rented the stadium and arranged the event. The agreement is to pay the band $20,000 plus $5,000 production reimbursement and $3,000 hotel reimbursement. Big Events must withhold the tax on the total income of $28,000.
2. The rock band Guitar Men are performing at the City Stage in Massachusetts for two days. Guitar Men have a contract with the promoter Zenith Promotions. The contract calls for a guarantee of $300,000 plus $50,000 production reimbursement. The band sells merchandise for the event and anticipates selling $180,000 worth for 2 nights (merchandise $180,000 times 1/3 equals $60,000). Zenith Promotions is required to withhold on the tax rate times the total income of $410,000.
3. DJ Sir Rocks A Lot is playing at a private event at the local convention center. The promoter is ZZ Productions, which has a contract with the performer. The contract calls for a guarantee of $200,000 and $50,000 in travel reimbursement. ZZ Promotions is required to withhold the tax on the total of $250,000.
4. Yukker’s Comedy Club contracts with a stand-up comic to work a weekend (Thursday, Friday, and Saturday) to provide entertainment to its customers. The contract calls for the comedian to work all three nights for a total of $6,000 plus an additional $1,000 for each sellout show. Over the contracted weekend, one show was a sellout. The total compensation was $7,000. Yukker’s withholds the 5.0% (this rate varies with the income tax rate) personal income tax rate multiplied by $7,000, or $350.
5. The four-member Chad Green Band contracts with Zinger Promotions to perform at City Arena. Three of the band members are individuals, while the fourth member, Chad Green PC, is a corporate entity. The contract calls for the fee of $100,000 to be divided and paid directly to each band member as follows: $20,000 each to the three individual band members and $40,000 to Chad Green PC.

• Zinger Promotions, the performer withholding agent, withholds:
• $1,000 ($20,000 times 5.0%) (this rate varies with the income tax rate) from each of the three individual band members, and
• $2,000 ($40,000 times 5.0%) (this rate varies with the income tax rate) from Chad Green PC, which will be allocated to the fourth band member. Zinger Promotions must complete the online report and payment using the names and social security numbers of the three individuals and the name Chad Green PC, with its federal identification number, for the fourth member. (Chad Green PC should file and pay its own corporate excise separately.)

Withholding Exceptions FAQs

Does withholding have to occur for every performance in Massachusetts?

Withholding does not have to take place in the following situations:

• Payment is below the withholding threshold established by DOR. However, DOR may direct a payer to withhold, notwithstanding the threshold, if a performer is earning substantial Massachusetts source income.
  • See DOR Regulation 830 CMR 62B.2.1(4)(f)3 and Directive 05-4, Issue 1.
• The performer withholding agent is a tax-exempt federally recognized 501(c)(3) entity that makes gross payment for a performance or event that does not exceed $10,000.
  • See DOR Regulation 830 CMR 62B.2.1(4)(f)4 and Directive 05-4, Issue 2.
• The performer or performing entity submits a request to DOR and receives approval before the performance to waive withholding.
  • To learn more, see “For what reasons will withholding be waived?” in the Report, Pay, and Other Requirements section below.

Note that even if withholding is not required, performers and performing entities that earn Massachusetts taxable income are generally required to make estimated income tax payments and file a tax return in Massachusetts.

Examples of When Withholding Is Not Required

1. (a) Classical Symphony Orchestra, a tax-exempt 501(c)(3) charitable organization, pays Ophelia Bowman, a violinist, $30,000 to perform with the orchestra for a three-night engagement as a special guest. Classical Symphony Orchestra must register as a performer withholding agent with DOR and withhold from Ophelia Bowman.
2. (b) Same facts as above, except that Ophelia Bowman performs for only one night, and her fee is $10,000. Classical Symphony Orchestra is not required to withhold since they are a tax-exempt entity and the gross payment for the event is not more than $10,000. Even though withholding is not required, Ophelia still owes personal income tax in Massachusetts and should make estimated tax payments to Massachusetts.
3. The Pub, a bar that occasionally provides live entertainment for its patrons on weekend nights, hires Jesse Crooner, a folksinger, to sing for a nominal fee on one Friday night. The Pub does not have to withhold from Jesse if the amount paid to him is below the dollar threshold established by DOR.
4. Walden University, a tax-exempt federally recognized 501(c)(3) entity, is holding its May graduation ceremony in its sports center complex. As part of the event, the association contracts with former U.S. President Politico to speak at the event for $15,000. The university must register as a performer withholding agent and withhold tax from the former president.
5. Tailor’s, Inc., a major retail store, sponsors a charity fundraiser for victims of Hurricane Iris at the City Arena. Tailor’s, Inc. contracts with a rock band, The Great Rockers, to perform at the event for $8,000. Tailor’s, Inc. must register as a performer withholding agent and withhold from the rock band.

MA DOR Withholding Taxes on Wages Guide 

Reduction and Waiver of Withholding

For what reasons will the withholding amount be reduced?

Generally, the performer withholding agent must withhold tax on the gross payment paid to a performer or performing entity. However, upon the performer or performing entity's request and approval by DOR, the withholding tax may be based on the gross payment reduced by the performer or performing entity's allowable expenses.

A performer or performing entity may request a reduction for allowable expenses on Form PWH-RW, using MassTaxConnect. The request must be submitted at least 14 business days in advance of the performance. After processing Form PWH-RW, DOR will issue a determination letter, entitled Performer Withholding Reduction Determination, to the performer or performing entity notifying them of its determination in advance of the performance. If the request is approved, in full or in part, DOR will also send a copy of the letter to the withholding agent reflecting the amount of approved expenses.

Expenses that may reduce the gross payment upon which the withholding tax is based include the costs of lodging, transportation, commissions, employee salaries that are already subject to Massachusetts withholding, per diem payments (a daily allowance to employees for incidental expenses), and insurance. Expenses claimed must be reasonable and documented.

Example: 

1. The band, Sincere Sisters, has been contracted to appear at City Arena for three days in January. The contract calls for the band to perform concerts on Wednesday, Friday, and Saturday nights. The Sincere Sisters band will be:

• renting eight hotel rooms for four nights and
• traveling on two tour buses with three employees.

The Sincere Sisters band submits expenses to DOR by completing Form PWH-RW on MassTaxConnect 14 business days prior to the event for the hotel, fuel, lease and insurance for the buses, employee salaries, per diems (a daily allowance for employee meals and snacks), and meals for the group for four days.

DOR approves a reduction of the gross payment for allowable expenses and sends the band and its performer withholding agent a Performer Withholding Reduction Determination letter before the performance.

To learn more, see “How can a performer or performing entity reduce or waive the amount of withholding?” in the Request a Reduction or Waiver of Withholding section below.

For what reasons will withholding be waived?

A performer withholding agent is not required to withhold tax if a performer or performing entity has been granted a waiver by DOR.

A performer or performing entity may request that withholding be waived by submitting Form PWH-WW on MassTaxConnect at least 14 business days before the performance.

Waivers may be granted under the following circumstances:

• a performer is a resident of Massachusetts and is current with all of their Massachusetts tax obligations;
• a performer is treated as an employee of the withholding agent or performing entity for federal income tax withholding purposes;
• a performing entity continuously maintains an office in Massachusetts and is current with all of its Massachusetts tax obligations;
• a performing entity is registered with DOR for withholding taxes as an employer; or
• a performer or performing entity anticipates that there will not be sufficient income to subject the affected performer or performers to personal income tax in Massachusetts (income from all sources, inside and outside of Massachusetts, will not exceed $8,000 for individuals).

Examples: 

1. City Arena signs a contract to co-promote an ice skating show with Stars on Ice, an out-of-state company that promotes ice skating shows and employs skaters. Stars on Ice is registered with DOR as an employer and is in compliance with its Massachusetts tax obligations. A month before the show, Stars on Ice completes a Form PWH-WW, A Request for Waiver of Withholding on MassTaxConnect declaring it is a performing entity registered as an employer with DOR. DOR grants the waiver request, and City Arena does not have to withhold from Stars on Ice.
2. Johnny Chelsea is an entertainer who is a Massachusetts resident that is compliant with his tax filing requirements and current year estimated deposits. Mr. Chelsea is contracted by Big Wig Promotions to appear at the Massachusetts Stadium for three shows. Two weeks in advance of the first show, Mr. Chelsea submits to DOR a Form PWH-WW on MassTaxConnect declaring that he is a resident performer and secures a “Performer Withholding Waiver Determination” letter from DOR approving the waiver. DOR also sends a copy of the “Performer Withholding Waiver Determination” letter to Big Wig Promotions. No withholding is required.
3. The Dingbats, an out-of-state baseball team, competes in a league that requires them to play in Muddy Bottom Park in Massachusetts. The players are employed by the team which is registered to withhold in Massachusetts. Three weeks before the game, The Dingbats request a waiver by completing a Form PWH-WW, declaring it is a performing entity and is registered with DOR to withhold Massachusetts income taxes as an employer. DOR approves the request. Because Massachusetts tax is withheld from the players’ salaries by the team, no performer withholding is required.
4. The rock group Buffalo Wings signed a contract to appear at Boston Park for two dates in August. The contract calls for a guarantee of $100,000 to be divided and paid equally to each of the four band members. Two of the band members, Dana and Dave, are Massachusetts residents. The other two band members reside in California. Dana and Dave submit a Form PWH-WW on MassTaxConnect to request a waiver of their withholding taxes. DOR approves Dana’s waiver request because she is a Massachusetts resident current with all her tax filing obligations. DOR sends a “Performer Withholding Waiver Determination” letter to Dana and a copy to the performer withholding agent. However, DOR denies Dave’s waiver request because, even though he is a resident, he failed to file income tax returns for the previous two tax years. DOR sends a “Performer Withholding Waiver Determination” letter to Dave but does not send a copy to the performer withholding agent. The withholding agent should withhold taxes on the $25,000 each paid to Dave and the two other nonresident band members.
5. Johnny Chelsea is an entertainer who is a Massachusetts resident that is compliant with his tax filing requirements and current year estimated deposits. Mr. Chelsea is contracted by Big Wig Promotions to appear at the Massachusetts Stadium for three shows. Two weeks in advance of the first show, Mr. Chelsea submits to DOR a Form PWH-WW on MassTaxConnect and secures a “Notice of Withholding Waiver” from DOR declaring that he is a resident performer. DOR also sends a copy of the “Notice of Withholding Waiver” to Big Wig Promotions. No withholding is required.

Request a Reduction or Waiver of Withholding

How can a performer or performing entity request a reduction or waiver of withholding?

With MassTaxConnect

Performers and performing entities can request a reduction or waiver of withholding, by submitting Forms PWH-RW and PWH-WW, respectively, through MassTaxConnect.

Beginning June 1, 2025, all reduction and waiver requests must be filed electronically through MassTaxConnect. After May 31, 2025, any requests filed on paper via email or otherwise may not be processed. Additionally, all requests must be submitted at least 14 business days prior to the performance date to allow sufficient time for processing.

Once a reduction or waiver request has been reviewed, DOR will issue a letter of determination (entitled Performer Withholding Reduction Determination or Performer Withholding Waiver Determination, as applicable) to the performer or performing entity making the request, informing them of that determination. Determination letters approving a request for reduction or waiver of withholding will also be sent to the withholding agent.

To file requests for reductions and waivers of withholding through MassTaxConnect:

A performer or performing entity that has an account already with MassTaxConnect should choose under the Performer Withholding prompt either Performer Withholding Reduction (Form PWH-RW) or Performer Withholding Waiver (Form PWH-WW) and follow the prompts.

A performer or performing entity that does not have a MassTaxConnect account, must choose Submit Performer Withholding Request under File on the MassTaxConnect homepage and follow the prompts.

Online Requirements

When filing a waiver or reduction request with MassTaxConnect, the Performer or Performer Entity will need the following information:

• Performer’s Social Security number or Performing Entity’s federal EIN.
• Promotor’s tax identification number
• Name of venue
• Date(s) of performance
• Performer Assigned ID
• A performer withholding agent that is paying a foreign performer without a US government ID must request a performer-assigned ID to report any amounts withheld. To request a performer-assigned ID for a foreign performer, the withholding agent should email DOR at [e-mail].
• The performer withholding agent must submit a performer-assigned ID request before reporting and paying withholding.
• The performer assigned ID is specific to that performer or performing entity. The performer withholding agent may use the same performer assigned ID for additional performances by that performer or performing entity. Additionally, the performer or performing entity can continue to use the same performer-assigned ID for other events, even if it was requested by a different performer withholding agent.

Register, Report, Pay, Quarterly Returns, & Other Requirements

A performer withholding agent must register with DOR using MassTaxConnect, under Performer Withholding. (To find MassTaxConnect, go to www.mass.gov/dor and look for the MassTaxConnect quick link.)  Registration must be completed at least five business days before the withholding agent submits its first report and payment

The performer withholding agent must also use MassTaxConnect to report and pay the amount of taxes withheld during a quarter-monthly period within three days after the close of the quarter-monthly period. However, the performing withholding agent does not need to wait until the close of the quarter-monthly period. They may report and make payments as early and as frequently as they choose.

See below to learn more about the quarterly return and schedule and other filing and payment requirements.

File Quarterly Wage Reports   Video: How to Register a New Business in MassTaxConnect  Video Playlist: Business Actions (including registration)  

Quarterly Payment Schedule

A quarter-monthly period is defined as:

• the first seven days of a calendar month
• the 8th through the 15th day of a calendar month
• the 16th through the 22nd day of a calendar month, or
• the 23rd through the last day of a calendar month.

Payment Requirements

Payment must be made via ACH Debit, which is an electronic transfer of funds initiated by the DOR based on taxpayer instructions. This process debits the taxpayer’s designated bank account and credits funds to a designated Commonwealth of Massachusetts bank account.

ACH Debit transactions operate like paper checks, enabling DOR to receive funds on the settlement date specified by the taxpayer and for the amount specified by the taxpayer.

To ensure timely processing, the taxpayer must complete the electronic authorization for the debit by 4:00 p.m. Eastern Time on the business day before the date the funds are due.

Making Payments in MassTaxConnect 

Quarterly Return

The performer withholding agent must file a return reconciling all amounts withheld during the calendar quarter on MassTaxConnect on or before the last day of the month following the close of the calendar quarter.

Returns must be filed on or before April 30, July 31, October 31, and January 31.

Any amounts withheld during the quarter that have not previously been paid must be paid at the time of the quarterly return. The performer withholding agent will be able to view an online payment history to reconcile amounts withheld during the quarter.

Does a performer withholding agent have to make a quarterly return even if there is no withholding for that quarter?

Yes. A performer withholding agent who is registered must make a quarterly report even if the withholding agent has no withholding for that quarter. The obligation to file quarterly reports continues until the withholding agent closes its registration as a performer withholding agent with DOR.

What other obligations does a performer withholding agent have?

A performer withholding agent must issue a federal Form 1099-MISC (or federal Form 1042-S if the performer or performing entity is a foreign — i.e., non-U.S. — person under federal law) to the performer or the performing entity on whom it withholds.

Note:

• A Form 1099-MISC or 1042-S should be issued to the performer or the performing entity to whom the withholding agent makes a payment.
• The Form 1099-MISC or Form 1042-S is required in Massachusetts even if it is not required under federal law.

The performer withholding agent must file information returns, such as federal Form 1099-MISC, with DOR on or before June 1 of each year if it has made payment of Massachusetts source income to a nonresident individual or entity, as required under the nonresident personal income tax regulation.

In addition, the performer withholding agent must keep complete records, including copies of all Forms 1099-MISC or 1042-S it has issued.

The performer withholding agent should keep records of the following information:

• the name and Social Security number or federal tax identification number of the performer or performing entity,
• the gross amount paid to the performer or performing entity,
• the amount of Massachusetts income tax withheld, and
• the dates and locations of all performances.

MA Form 1099 Filing Requirements  IRS Publication 1220 

What obligations does a performing entity have?

A performing entity must allocate the withheld tax amount among its members or other owners, whether they are individuals or other legal entities. To allocate the withheld tax amount, use the Performer or Performing Entity Withholding Allocation Form, Form PWH-WA, available on DOR’s website.

The form must be:

• completed by the performing entity and
• given to each of the performing entity’s members or other owners.

The sum of the withheld tax allocated to all of the performing entity’s members or other owners must equal the amount withheld on the payment to the performing entity. Any recipient of the Form PWH-WA that is an entity, not an individual, must:

• complete its own PWH-WA forms and
• give them to its members or other owners.

The process of dividing the withheld amount among members or other owners of a performing entity should continue until the recipient of the Form PWH-WA is the individual who will report the income and claim the withholding credit on their personal income tax return.

Each performing entity that gives a Form PWH-WA to a performer or a performing entity must keep a copy for its records. A performing entity that receives a Performer Withholding Reduction Determination letter or a Performer Withholding Waiver Determination letter from DOR for reduced or waived withholding must keep a copy of that letter.

How does an individual performer claim amounts that have been withheld on their Massachusetts personal income tax return?

An individual can claim amounts withheld as credits towards their tax obligation on the Massachusetts personal income tax return (Form 1 or Form 1-NR/PY).

These amounts cannot be taken as a credit on any other type of return. To claim the credit, a statement of the amount withheld should be attached to the individual’s Massachusetts personal income tax return.

The statement of the amount withheld will be:

• in the form of a 1099-MISC or a 1042-S if the performer was paid as an individual by the Massachusetts performer withholding agent or
• in the form of a PWH-WA if the performer was part of a performing entity.