Kate stepping in here to give you a bit of info from the business side of photography & filmmaking, this time about taxes.
Yes, it is that time of year again. If you’re in the ol’ USA and didn’t already know it, the due date for 2010 US Federal taxes has been extended to April 18, 2011. That may be really great news to anyone scurrying around to finish up taxes at the last minute. Now, you’ll have all weekend to wrap them up.
As you finalize your return, make sure that you’ve taken advantage of all possible tax deductible expenses, especially those that are a bit esoteric. Since I am no tax professional, please do not consider this tax advice and check with a tax professional to learn about specific rules and exceptions that will affect your eligibility. However, this list may be a good way to start that conversation:
Tax deductible expenses specific to photographers and filmmakers:
Some deductions are very standard for all small businesses, including business insurance, office supplies, software costs, and even tax preparation fees. In the world of photography and filmmaking, there are some expenses that are more specific to the industry. To name a few….
Gear Related
- Camera and lighting equipment
- Memory cards, hard drives and digital storage
- Film (if you are old school) and processing fees
- Repairs and rentals
Business Related
- Website costs
- Professional memberships, such as ASMP or ASPP
- Reference materials – books, magazines
- Contest entry fees
- Continuing education courses
- Copyright registration fees
Production Costs
- Contractors, including stylists, assistants, models, location scouts, editors
- Wardrobe and props
- Permits, location fees or studio rental fees
- Travel expenses
- Music licensing fees
Additionally, here are some helpful ideas regarding taxes and tax prep:
- Think you are due a refund? File as soon as possible. The IRS does not pay interest on the money it owes you.
- Some libraries offer FREE tax form preparation! Make sure you have all of your paperwork together before you head in for assistance. This help is usually offered on a first come, first served basis and is only good through the official tax due date.
- Make use of the FREE resources available to you through the government: IRS website, call the IRS toll-free number for assistance or visit an IRS Taxpayer Assistance Center.
- Just need more time to finish? You can file for an extension but that does NOT give you any extension on paying your tax liability. That means, you still need to estimate how much you owe and you MUST pay Uncle Sam by Monday. Then, you can use your six-month extension to prepare your 2010 federal tax return.
- Any 2010 contributions to retirement funds must be postmarked April 18… no extensions, so make your contributions if you are able.
- Start organizing your 2011 tax paperwork NOW, and save yourself from any big headaches next year.
Good luck getting those tax returns out! Here’s hoping that you have a big fat refund check heading your way this year!
Thanks for the post. If you’re interested, here’s the link to a blog I just did on business structure as it relates to photographers: http://chriscouncilphotography.com/fotocouncilor/2011/04/15/procrastinators-unite/
thanks for such an informative post. Such posts from you on the business sides of photography are always so much useful. Thankyou!
Just did my taxes and posted my breakdown of photography expenses and revenue and would be curious how they compare to others. Kind of wish I bought more equipment actually 🙂
Thanks Kate, you saved me some $$$.
Awesome post!
Also the Home Office Credit gave me an extra $600 … if you have a home studio or office where you do your editing that counts as part of your business.. a lot of people miss that. Just because its in your home doesn’t mean you cant claim it as a business expense.
-Adam Coss
@Adam. Good one! Just make sure you know the rules around this deduction. From the irs, “In order to claim a deduction for that part of a home used for business, taxpayers must use that part of the home:
* Exclusively and regularly as their principal place of business, as a place to meet or deal with patients, clients or customers in the normal course of their business, or in connection with their trade or business where there is a separate structure not attached to the home; or
* On a regular basis for certain storage use such as inventory or product samples, as rental property, or as a home daycare facility.
Generally, the amount of the deduction depends on the percentage of the home that is used for business.
These requirements are discussed in greater detail in Publication 587, Business Use of Your Home.” http://1.usa.gov/9PMAAS