Photography vs taxes

[Liz]

Anyone buying photography equipment with their tax returns? I had a surprise today - not a good one!

I used to look forward to spending my tax return every year on a new lens, camera, flash, whatever. Not any more! Last year and this year I've had to pay. However, according to my calculations, I expected a nice refund this year. After working on my taxes for almost 6 hours today, I was totally shocked when I discovered I have to pay - a lot!!!!!!!! I went over the figures numerous times thinking I made a mistake. In the end, the IRS won! At any rate, I'm glad it's over. I really don't know how I miscalculated - I'm usually right on the mark. In previous years, I've even purchased the item ahead of time anticipating a nice return. Oh well........

Thankfully I had enough money in my photography budget to get my new Tokina!

Liz

[Dave Smith]

Yeah Liz ....
I've noticed that too. Every year I increase the percentage (over and above thye matrix) I have held out for taxes. I have had to pay each of the last five years. This year not too bad as I had a LOT of charitable contributions.

I feel your pain.

[Old Timer]

The taxman hit me a good lick this year. I was half expecting it, but it was still at least double what I had thought it might be. That D300 is probably going to have to be shelved till next April now. I'm like you Liz I'm glad I took the plunge early this year on a couple of lenses that I really wanted and seem to be working out great for me. If I would have waited I know I would not have pulled the trigger on them after seeing my tax bill.

[another view]

I'm really not a fan of tax returns - the government is essentially squaring up with you after using your money for free for a year, so I try to limit that amount... But paying in is no fun, I agree! Think I'm done with gear for awhile anyway but did already order another c/f card from B&H this morning.

Reminder - they (along with Adorama and possibly others) will be closed 4/18-4/27. B&H says they'll ship orders received after Wednesday 4/16 after they re-open on 4/28...

[Xia_Ke]

I feel your pain. This was the first year I had to pay too. Didn't have to pay much at all but, sucked because I'm used to getting a decent refund

[megan]

I went to an accountant this year and got a sweet return - but I'm starting to put some of my freelance earnings into CDs this year. I'm doing so much freelance that I'm worried I will have to pay next year... not looking forward to that at all.

[freygr]

If you doing a lot of freelance stuff better up your withholding or file the quarterly tax stuff. The IRS will get you big time if you owe, and your over their limits!

[mattbikeboy]

Got mine done early and got back my refund. My purchases:
Nikon 80-200 f2.8, hood and UV Haze filter
MB-D80 battery grip
SB 600 flash

Used all for soccer pics, mountain bike race pics and even a sweet 16 birthday party -- also use them all to annoy my own children. ;) And I must say that I'm absolutely in love with the 80-200.

mbb

[adina]

Weellll...we are set so that we pay one and get back from the other. Our get back is usually about $100 or so more than our pay. So it's a wash.

This year, I'm paying estimated quarterly payments. If I didn't work at all, we'd be fine, but because I am earning, we get hosed. Every time.

So no new equipment.

[f5fstop]

I have always paid every year. Usually a small amount, but I would rather pay a few hundred in April, than go to sleep thinking Uncle Sam is using my money interest free.
I do need some more cards and will be ordering a Solmeta GPS in a few days, as soon as they are ready to ship their new model; the N2.

[Dylan8i]

haha the ONE good thing about making so little money each year (student!) is that i always get everything back thats taken out... but everything is only like $300. but couple that with my $600 gov check and i could be close to a new lense (80-200 maybe- i wanted then 70-200 vr though) or start saving for a new car since mine is about to rust away- not to mention my student loans i'll need to start paying... guess i should try to earn some extra cash.... anyone want to buy some photos?

[ken1953]

Kim and I got wholloped this year. Even with a ton of write-offs, the paper delivery business was very lucrative on the front end and not understanding the need to pay Self Employed Taxes quarterly, we're winding up paying a bunch. If you're self employed, and that includes freelance photographer, make sure you either put away at least 15% of your income monthly or pay your quarterly SE tax, or be prepared for a major hit at the end of the year.