Being a photographer can be very expensive! A lot don’t understand this, but those who seriously pursue this hobby or business avenue really have bruises in the pockets. I have always been a person to look for freebies to help my business out.
But wait…. all cost are tax deductible right?
” Your tax deductions do not come directly off of your tax bill. In other words, if you owed $1,000 in taxes and deducted a $100 expense, you would not reduce your taxes to $900. Instead, tax deductions reduce your taxable income. That means you calculate your gross income for the year and then subtract expenses before figuring your taxes. If you earned $50,000 and deducted a $100 expense, you would pay taxes on $49, 900. The amount a deduction saves you in taxes depends on your tax bracket.” http://finance.zacks.com/much-tax-back-deduction-3148.html
Your thinking that spending $100 saves you a hundred in taxes. But actually you are spending a hundred to save a percentage of taxes.
This means that a $1,000 tax credit saves you $1,000 in taxes. On the other hand, tax deductions lower your taxable income and they are equal to the percentage of your marginal tax bracket. For instance, if you are in the 25% tax bracket, a $1,000 deduction saves you $250 in tax (0.25 x $1,000 = $250).
So we should be frugal in all areas, as much as possible and save the money in to other pots that can make us money on interest. Maybe our Roth IRAs?
So for all those photographers looking for some freebies, here is my go to list.
Light Room Presets
Free Christmas Card Templates and more Every Year.
Desktop Organizer for more efficient business running
Scroll down her page a little and look for 12 Days of giving and find templates for cards, organizing, business forms, and so much more! Not to mention get some free information by reading her blog.
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I hope you find joy in these freebies, make sure to subscribe, and get the word on more freebies as I discover them.
My website www.KellieMariePhotography.com