Snap Up Success: The Ultimate 2024 Year-End Tax Planning Guide for Photographers
It’s that time again - you’re busy booking holiday minis, wrangling screaming kids in santa hats and preparing for the wave of leads during engagement season….but the one thing that is not on your mind: Taxes.
Look, I get it. The last thing you want to do is dive into a pile of receipts and tax forms. But here's the truth: nailing your year-end tax planning can be the difference between just running a photography business and building real wealth. So let's do this!
1. Prep for 1099 Season
The minute the ball drops in the new year, you have 31 days to issue your 1099s. Here's how to avoid a blurry mess:
Review all the contractors, second shooters, assistants, and models you paid throughout the year. (Hint: This is super easy if you use QuickBooks or similar software and add vendor names to each payment!)
Collect a W-9 from each vendor so you have all the details you need to fill in their 1099 when the time comes. (Note: You only need to issue a 1099 for any vendor who you paid over $600 via cash, check, or direct fund transfer including Zelle/Venmo, etc.!)
Pro tip: Next year, grab those W-9s before you even think about hitting 'send' on that first payment to a new assistant or model.
Learn more about 1099s first hand from the IRS: https://www.irs.gov/forms-pubs/about-form-1099-misc
2. Payroll & Benefits: Don't Leave Money on the Table
Time to make sure you're not overpaying Uncle Sam (or underpaying yourself):
S-Corp owners, listen up: We're grossing up those health insurance premiums. This means including the health insurance your business paid on your behalf as part of box 1 wages on your W-2. (Confused yet? Use a payroll software to help you navigate this!)
Review your compensation. Is it reasonable? Too little? Too much? Striking the perfect balance can help you minimize payroll taxes while staying in the IRS's good graces.
Process any year-end bonuses well in advance! There are lots of bank holidays at the end of the year, and you don't want those payments delayed.
3. Retirement Planning: Because Dream Vacations Don’t Pay for Themselves
Let's set you up for that picture-perfect retirement:
Evaluate your options: SEP IRA? Solo 401(k)? As a self-employed photographer, you have SO MANY options that will help you both fund your future and save on taxes now.
Calculate the maximum you can contribute based on your studio's income and your cash flow.
Consider Roth conversion opportunities. If you're in a low tax bracket this year (maybe it was a slower season?),this could be a good time to convert some contributions to Roth to avoid taxes later.
4. Review your Tax Strategy
Time to put on your CEO hat and make some power moves:
Book that planning session with your favorite CPA (hint: it's me 😉)
Evaluate your business structure. Is it serving you? Or does the new year call for a change?
Review Quarterly payments - have you made enough? Or do you need to make a Q4 payment in January 2025.
Analyze your profit: What do the projections show for the year? (hint: if you don’t know try using Profitway to help you visually track your business progress)
Strategically plan income and expense timing – because sometimes, you gotta spend money to save money. Maybe it's time for that new camera or lighting equipment?
Equipment purchases: Are Section 179 and bonus depreciation the right shot for you this year? These could help you write off that new gear faster.
Feeling generous? Let's plan those charitable contributions.
5. New Year, New Business Energy
Set yourself up to crush it in 2025:
Update your trackers (mileage to photoshoots, home office space, etc.) – future you will be so grateful
Review your pricing – are you charging what you're worth? (Spoiler: probably not)
Contracts: Not as exciting as engagement photos, but necessary. Refresh them and send 'em out and make sure you're legally protected by outlining expectations
Dream team check: Do you have the second shooters and assistants you need to meet your goals next year?
6. Mark Your Calendar
Miss these dates, and you'll be in a long-distance relationship with the IRS (trust me, you don't want that):
October 15, 2024: Last call for those extended tax returns
October 31, 2024: Q3 payroll taxes due (Form 941)
December 31, 2024: Deadline to set up certain retirement accounts
January 15, 2025: Q4 estimated taxes due
January 31, 2025: W-2 and 1099 distribution deadline
Let's Wrap This Up
Look, I know tax planning isn't as thrilling as nailing that perfect shot or booking your dream client. But here's the deal: this stuff is the foundation of building real wealth in your photography business. And isn't that why we're all here?
By knocking out these tasks now, you're setting yourself up for a year of financial clarity, strategic growth, and maybe even a few surprise photo trips to exotic locations. Because when you know your numbers, you can make power moves in your business and your life.
Remember, building wealth isn't just about making money – it's about keeping it, growing it, and using it to create the life you've always dreamed of capturing through your lens. And that, my friend, is what I call a picture-perfect business strategy.
Ready to turn your year-end tax planning into a wealth-building photoshoot? Let's chat. Book a call with me 💸
Disclaimer: While this guide provides valuable insights, it's important to note that every business has unique circumstances. For personalized advice tailored to your specific situation, please consult with a qualified tax professional. Our goal at CBFS is to empower you to make informed decisions that support your business growth and personal wealth-building objectives.
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Disclaimer: AI may have been used to help create, enhance, or review this content. All relevant financial information has been reviewed by a licensed financial professional.
