MicrostockGroup
Microstock Photography Forum - General => General Stock Discussion => Topic started by: Unamas on April 03, 2025, 15:07
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I finally started earning money from Shutterstock and Adobe! I received my 1099-MISC form this year. What deductions are you claiming for it?
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I finally started earning money from Shutterstock and Adobe! I received my 1099-MISC form this year. What deductions are you claiming for it?
I am in Canada but doubt things are much different. I do my own taxes. Basically I report Photography Income (stock and non/stock) as self-employment. In other words small business. Then as this business is home based, portion of things like Electricity / Internet / Property Tax / Maintenance (HOA Fees) etc can be deducted, as long as you are conservative about it. Then there are fixed assets - Camera, Lenses, Tripods as well as Computer Hardware. These assets depreciate with time. This year they allow to fully depreciate the asset if you want which makes it easier. Also personal website fees (if you have one). Then if you paid for Photoshop, it can be claimed as well. I also claim cost of Tax Filling Software after having verified this is legit expense. Also, If you are paid through PayPal but not US based, then convert to local currency, there is PayPal FX fee which is legit cost.
Hardest is to do it first time & maybe best to pay someone to do it for you, but explain what/how. Then its easier.
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I am in Australia but its very similar to Canada (above).
The criteria is "expenses incurred necessary to earning your income", and yes, it includes software, any IT expenses, travel expenses for any field trips, books and periodicals, props, model fees, depreciation on camera & equipment, new PCs, etc. Plus home office expenses based on what percentage of your home is dedicated to your photography studio and office.
I just had a quick look at the USA and for home office, it says:
"Home office-related deductions are based on the percentage of your home that you use for business. If you meet IRS guidelines, you can deduct the following home-related expenses: Homeowners insurance. Homeowners association fees. Cleaning services or cleaning supplies used in your business space."
"The 'exclusive use' test
To take the home office deduction, you must show that a portion of your home is your principal place of business and that this space is regularly and exclusively used for conducting business. The IRS refers to this as the "exclusive use" test.":
https://www.uschamber.com/co/run/finance/home-based-business-tax-deductions#:~:text=Home%20office-related%20deductions%20are%20based%20on%20the%20percentage,or%20cleaning%20supplies%20used%20in%20your%20business%20space. (https://www.uschamber.com/co/run/finance/home-based-business-tax-deductions#:~:text=Home%20office-related%20deductions%20are%20based%20on%20the%20percentage,or%20cleaning%20supplies%20used%20in%20your%20business%20space.)
https://www.nerdwallet.com/article/taxes/home-office-tax-deduction (https://www.nerdwallet.com/article/taxes/home-office-tax-deduction)
However, if you are just starting to earn some income, then you may find your expenses are greater than your income in the beginning, so you should look at whether you can carry forward that excess expense to the next year.
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Also note that in the USA, you have two methods to choose from for calculating Home Business expense:
How to calculate your home office tax deduction
You can determine the value of your home office deduction using one of two methods.
Simplified method: With the simplified option, you aren’t deducting actual expenses. Instead, the square footage of your space is multiplied by a prescribed rate. The rate is $5 per square foot for up to 300 square feet of space.
Actual expenses method: The regular, more difficult method values your home office by measuring actual expenditures against your overall residence expenses. You can deduct mortgage interest, taxes, maintenance and repairs, insurance, utilities and other expenses. You can use Form 8829 to figure out the expenses you can deduct.
https://www.nerdwallet.com/article/taxes/home-office-tax-deduction (https://www.nerdwallet.com/article/taxes/home-office-tax-deduction)
And yes, as suggested above, see a tax agent or accountant for when you are earning more than your expenses. Ask any photographer friends to recommend someone, because then you will know he/she has knowledge of all the deductions in your field.
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model fees
How do you justify the costs of models? Do you write their fee in the model release?
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Track and deduct your work miles. Do it auto-magically with an app. I do lot's of road trips for photography and this is my biggest business expense by far. This year it's 67 cents a mile.
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Track and deduct your work miles. Do it auto-magically with an app. I do lot's of road trips for photography and this is my biggest business expense by far. This year it's 67 cents a mile.
I use paper log pages, which I keep detailed information, start miles, distances, days, gas and lodging. I wonder if I'm missing anything else, for photo trips?
What App? Thanks for the idea.
I already depreciate photo equipment. have a separate "business" phone, I don't take home office space, that's a buffer, in case I get audited again, I have some insurance. I don't claim the computers, laptops, or printers. More leeway for an audit. The internet is a business expense, I don't know how to detail what's personal or business exclusive.
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The travel expenses look interesting. How much can I deduct from my trip Hawaii? :)
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The travel expenses look interesting. How much can I deduct from my trip Hawaii? :)
From the IRS website:
https://www.irs.gov/newsroom/understanding-business-travel-deductions (https://www.irs.gov/newsroom/understanding-business-travel-deductions)
Deductible travel expenses include:
- Travel by airplane, train, bus or car between your home and your business destination.
- Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
- Shipping of baggage and sample or display material between regular and temporary work locations.
- Using a personally owned car for business.
- Lodging and meals.
- Dry cleaning and laundry.
- Business calls and communication.
- Tips paid for services related to any of these expenses.
- Other similar ordinary and necessary expenses related to the business travel.
** But only those expenses directly related to your photography business.