Understanding Taxes and Accounting
the tax man. You are in a very select group of people who are extraordinarily vulnerable when it comes to taxes. Because if you are not aware of how you're supposed to file your taxes as an independent sole proprietor, you will find yourself in arrears with the I. R. S. And I cannot tell you how many photographers I know who are my age at this point who are still paying back the taxes they didn't pay when they were assistance because they just didn't know and no one told them thousands and thousands of dollars ruined credit ratings. All of it. You need to If you're making money as a photographer, you need to consult an accountant. Do not try to file a 10 40 easy form with a bunch of 10 99. It's not gonna work. Pay the 250 bucks letting accountant do your work. Find somebody in the industry who understands photography or creatives, not just photographers on. My accountant handles all sorts of creatives because are write offs are different. The things that we can claim our different that...
the 10 99 system is different. All of it you need to be aware that you can get yourself in deep, deep hole with your taxes. As an independent contractor, it's really important to know. Don't try to manage it on your own. You're gonna get yourself in trouble. Um, if let's see what else. Oh, the other thing that's really important and a lot of people missed the boat on is you don't want to pay taxes on your expenses. So if you're if you're being your invoicing your clients for your creative fees, your day rate usage fees, your expenses, your proper until your studio all these things and it comes in one check. You don't want to pay taxes on all that money. That's why one of the reasons why you have to have an accountant to unpack all of that stuff because you don't want to count all that is income because it's not. And a lot of times people get the checks, they put him in the bank. They pay their, they pay off whoever they have to pay off that they realize if you get audited, that's going to show up his income. Because if you don't delineate what those things are really clearly, um and with specific write offs. I mean, considering the productions that I'm involved in, not even the ones on the advertising end, but just the editorial stuff that I run through. My personal, uh, my, my, uh, production company. If I were paying taxes on all the expense money, I'd be in trouble every year. So you have to know how to unpack those things and keep really good records and keep both physical copies of receipts and digital copies of receipts. Because when they come looking for you and they want you to justify how do you justify this as not? Not as income. You need to have the receipts to prove it. Business business Tax returns need to be five years back, I think. If not seven, I have a storage unit. Um, I keep all of my tax and receipts and all that off site because if my studio burns down and I lose not only my gear, but all my receipts, it's gonna be bad.