In honor of the upcoming tax season, I figured that I'd throw a little helpful hint out there. Most photographers, like myself, do a good deal of work on the 1099 Tax Platform...meaning that no taxes are withdrawn. If I give my client a $10,000 bill then I get a $10,000 check. Not a bad deal, but then I have some work to do once I deposit that bad boy; I call it the 30% Rule. Basically, after paying all your job expenses you are left with your profit..well, sort of. You are taxed on about 24%-26% of your income, so an easy way to combat that is to dump an even 30% into a savings account from each check. This will insure you have the cash come tax season (with a little left over for that new lens) and it makes you feel rich when you look at your bank statement. I would also advise looking into paying your taxes quarterly as this also helps manage your cash flow. Good Luck!!
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