Tax & Accounting for Photographers and Videographers

Frequently Asked Questions

Is photography taxable in New Jersey?

Photography services (your labor, skill, and artistic work) are generally NOT taxable as a service in NJ. However, the sale of physical prints, albums, canvases, and other tangible products IS taxable at 6.625%. When you bundle services and products. For example, a wedding package that includes both coverage time and a print album for one price. The taxable and non-taxable portions should be separately stated on the invoice to avoid taxing the entire package. Digital image file delivery is a grayer area: NJ taxes 'specified digital products' including digital audio-visual works, but whether digital photo files delivered for personal use (as opposed to commercial licensing) are taxable remains subject to interpretation. Photographers should consult on this specific question based on how their digital delivery is structured.

Can I deduct all my camera gear?

Yes. All camera bodies, lenses, flashes, lighting equipment, tripods, gimbals, drones, memory cards, batteries, and accessories used for business are deductible. Section 179 (2026 federal limit: $2,560,000) and 100% bonus depreciation (permanent under OBBBA for property placed in service after January 19, 2025) allow full immediate expensing. Items costing $2,500 or less per invoice can be immediately expensed under the de minimis safe harbor, no depreciation schedule needed. Computers, editing monitors, and storage are also fully deductible. NJ caps Section 179 at $25,000 and does not allow bonus depreciation, so in a year when you buy $30,000 in equipment, you'll deduct $30,000 federally but only $25,000 in NJ (the NJ Section 179 cap), with the remaining $5,000 depreciated over MACRS recovery on the NJ return.

Should I pay my second shooters as employees or 1099 contractors?

Most photographers use second shooters on a per-project basis and classify them as independent contractors. This is defensible when: the second shooter sets their own rates, uses their own equipment, works for multiple photographers, and controls how they perform their services. However, NJ's ABC test creates risk if the second shooter works exclusively or primarily for you, Prong C requires the contractor be 'customarily engaged in an independently established trade.' Issue 1099-NEC forms for all second shooters paid $2,000+ in TY2026 (the threshold rose from $600 to $2,000 under OBBBA §70433 for payments made after Dec 31, 2025; TY2025 still used the $600 threshold). Keep signed contracts and project-by-project documentation. If you consistently use the same second shooter every weekend, the IRS or NJ DOL may push back on contractor status.

How do I handle deposits and retainers?

For cash-basis photographers (which most are), non-refundable retainers are taxable income when received, not when the session occurs. If a client pays you a $500 non-refundable deposit in December for a May wedding, that $500 is December income. A refundable deposit is a liability when received and becomes income only when the event takes place (or when it becomes non-refundable). The practical approach: track all deposits received by date, make sure your year-end books reflect all December deposits as income, and maintain clear contract language distinguishing non-refundable retainers from refundable deposits.

What mileage and travel expenses can I deduct?

You can deduct business mileage using the standard mileage rate (72.5 cents/mile for TY2026) or actual vehicle expenses (gas, insurance, depreciation, maintenance) multiplied by your business-use percentage. You cannot deduct commuting, driving from home to a regular studio location is not deductible. But driving from home (or your studio) to a client location, venue, or location scout is fully deductible. For destination shoots and weddings: flights, hotels, and 50% of meals are deductible when you're away from your tax home overnight for business. NJ follows federal mileage deduction rules. Document every business trip, date, destination, business purpose, and miles driven. A contemporaneous log is the IRS standard.