# The tax monster is coming soon. What are you planning on doing with your refund?



## RMC33 (Jan 17, 2013)

So who is going to buy something fun with their tax refund? 

Personally geting close to $4000 back and putting it towards a 7DmkII or 1Dx depending on the stats on the latter.


----------



## neuroanatomist (Jan 17, 2013)

Does part of the down payment on a new vehicle count as 'fun'?  I suppose not, but then, I fund all my gear purchases from 'on the side' consulting work - the day job income (and taxes refunded from that) go toward the important stuff - house, cars, kids' college and retirement funds, etc.


----------



## RLPhoto (Jan 17, 2013)

4x PCB Einsteins.


----------



## robbymack (Jan 17, 2013)

there is nothing like the government paying you back with your own money without interest


----------



## kirispupis (Jan 17, 2013)

Given that with the latest tax changes we are about $1200 poorer every month, I do not believe I'll be buying anything.


----------



## Brendon (Jan 17, 2013)

kirispupis said:


> Given that with the latest tax changes we are about $1200 poorer every month, I do not believe I'll be buying anything.



I would say that sucks, but if you are loosing $1200 a month to a 2% tax increase I don't feel sorry for you.


----------



## etg9 (Jan 17, 2013)

I would like to know more about this getting your money back...

/single
//no house
///pays too much in taxes


----------



## ewg963 (Jan 17, 2013)

1 DX hopefully but I'll see what the tax Gods will allow me to have. 8)


----------



## KyleSTL (Jan 17, 2013)

I'm not sure the financial department will OK an AFE for camera gear. Travel and kitchen reno will certainly come first.


----------



## zim (Jan 17, 2013)

What the hell is a tax *refund*?   ;D


----------



## kirispupis (Jan 17, 2013)

Brendon said:


> kirispupis said:
> 
> 
> > Given that with the latest tax changes we are about $1200 poorer every month, I do not believe I'll be buying anything.
> ...



It's a lot more than 2%.


----------



## Invertalon (Jan 17, 2013)

Sadly, this year I will owe! So nothing for me!


----------



## jeffabbyben (Jan 17, 2013)

neuroanatomist said:


> Does part of the down payment on a new vehicle count as 'fun'?  I suppose not, but then, I fund all my gear purchases from 'on the side' consulting work - the day job income (and taxes refunded from that) go toward the important stuff - house, cars, kids' college and retirement funds, etc.



What the hell type of moonlighting does a neuroscientist do??? LOL


----------



## KyleSTL (Jan 17, 2013)

jeffabbyben said:


> neuroanatomist said:
> 
> 
> > Does part of the down payment on a new vehicle count as 'fun'?  I suppose not, but then, I fund all my gear purchases from 'on the side' consulting work - the day job income (and taxes refunded from that) go toward the important stuff - house, cars, kids' college and retirement funds, etc.
> ...



I was thinking the exact same thing.


----------



## awinphoto (Jan 17, 2013)

RLPhoto said:


> 4x PCB Einsteins.



nice choice


----------



## awinphoto (Jan 17, 2013)

While it's not as sexy as cameras and lenses... maybe radio poppers and promo promo promo... custom leather albums, canvas samples, metal samples... cant sell it if you dont show it.


----------



## awinphoto (Jan 17, 2013)

zim said:


> What the hell is a tax *refund*?   ;D



If you overpaid in taxes (in the USA), you can typically get the refunded taxes back in a refund. =) no guarantees in other countries.


----------



## Wildfire (Jan 17, 2013)

Student loans.


----------



## 2n10 (Jan 17, 2013)

It will go towards something in one of my hobbies. I just haven't decided yet.


----------



## bluegreenturtle (Jan 17, 2013)

awinphoto said:


> zim said:
> 
> 
> > What the hell is a tax *refund*?   ;D
> ...



He was being sarcastic. I thought the same question...the only people the get refunds are the people have "jobs".


----------



## awinphoto (Jan 17, 2013)

bluegreenturtle said:


> awinphoto said:
> 
> 
> > zim said:
> ...



I had that suspicion... but erred on the thought he could be from Europe or the like that do not get tax refunds =)


----------



## robbymack (Jan 17, 2013)

kirispupis said:


> Brendon said:
> 
> 
> > kirispupis said:
> ...



Then you are doing something wrong and need a better accountant


----------



## gmrza (Jan 18, 2013)

bluegreenturtle said:


> awinphoto said:
> 
> 
> > zim said:
> ...



.. and if you overpaid taxes, you were giving an interest-free loan to the taxman! That's why it's better to owe - that way the taxman can give you an interest-free loan for a few months...


----------



## stoneysnapper (Jan 18, 2013)

For the first year in about 10 I wont be getting a tax rebate (UK terminology). I had a lucrative business deal last year that sees me needing to pay a low end 6 figure tax bill by the end of January. There'll be tears in my eyes that day at the Bank.... I'll be paying more tax in the UK this year than Amazon did probably, joke.


----------



## FatDaddyJones (Jan 18, 2013)

Spent mine already (and then some) to compliment my 7D video rig. I'll probably be spending next year's tax return very shortly on some new glass. 

5D Mark III
Battery Grip
Lexar 800x 64Gb CF
DSLR Shoulder Rig w /Follow Focus & Matte Box
Zoom R16 & Sure PG42 Studio Mics
Rode VideoMic with dead cat
Benro tripod and ball head
New overclocked Core i7 desktop PC for editing w/ Nvidia GTX 660ti also overclocked


----------



## RC (Jan 18, 2013)

Nothing from tax refunds. I try to break even so I don't have to pay or receive a refund. I've already been taxed on my income, I don't want to be double taxed by getting a refund. 

I too use side money to fund my hobby, but now that the government is stealing more of our money ( new tax increases), my photography will take a hit.


----------



## cayenne (Jan 18, 2013)

RC said:


> Nothing from tax refunds. I try to break even so I don't have to pay or receive a refund. I've already been taxed on my income, I don't want to be double taxed by getting a refund.
> 
> I too use side money to fund my hobby, but now that the government is stealing more of our money ( new tax increases), my photography will take a hit.



I do the same, I try to juggle my W4 entries throughout the year, when I'm working W2 jobs (rather than 1009 contracting which I'd MUCH rather do)...so that in the end, I either only get back $100 or I pay $100 in taxes.

I see no reason to give the govt a tax free loan throughout the year, just so they can waste that too.

One thing I'd suggest....incorporate yourself, and that way...you can make all those photography purchases tax deductions.

Make it work for you, rather than have the tax man take your 'toy' money.


----------



## bluegreenturtle (Jan 18, 2013)

robbymack said:


> kirispupis said:
> 
> 
> > Brendon said:
> ...



If he is in a very high tax bracket, then it could indeed be a lot more than 2%. But if he's making that much he's probably not a pro photographer/videographer and is a hobbyist.


----------



## cayenne (Jan 18, 2013)

bluegreenturtle said:


> If he is in a very high tax bracket, then it could indeed be a lot more than 2%. But if he's making that much he's probably not a pro photographer/videographer and is a hobbyist.



I dunno, I saw this guy on Creative Live, and he billed out over $1M this year. He started in about 2008 and over $1Million in business this past year. 

http://salcincotta.com/

It can be done....


----------



## crasher8 (Jan 18, 2013)

We also do our best to limit a refund and not being overtaxed and allowing the govt to earn interest on our own money (too much) and this is coming from a staunch liberal!
However with many business deductions and mortgage interest lowering our taxable income it just happens!

So I think an EF 70-200 2.8 IS ll should be a great way to pump some more money into the economy through B&H.


----------



## dstppy (Jan 18, 2013)

Where's the obligatory "humph, not everyone lives in the US post" ;D

Unfortunately, two or three years back, I joined the 'what's a refund?' crowd. 

I wish I were as rich as my taxes say I am!


----------



## RMC33 (Jan 18, 2013)

crasher8 said:


> We also do our best to limit a refund and not being overtaxed and allowing the govt to earn interest on our own money (too much) and this is coming from a staunch liberal!
> However with many business deductions and mortgage interest lowering our taxable income it just happens!
> 
> So I think an EF 70-200 2.8 IS ll should be a great way to pump some more money into the economy through B&H.



I was in the same situation. I get a huge deduction on my prototyping business since we produce very little waste (on an order of .5% of the material we buy gets turned into waste and 98% of our billing is paperless now) and from a few R&D tax credits that we benefit from. These all came up this year and I was not expecting them.


----------



## KyleSTL (Jan 19, 2013)

crasher8 said:


> ... I think an EF 70-200 2.8 IS ll should be a great way to pump some more money into the economy through B&H.


It's our civic duty. Yeah ... that's the angle I'll take in my request for discretionary spending.


----------



## extremeinstability (Jan 19, 2013)

Wild guess between now and April I sell either my Zeiss 21 or Canon 100-400L to help pay my taxes. One of these years I'll learn to pay the quarterly estimates(like it matters). God I love 15% self employment tax, sigh. But yeah yay for all the deductions being self employed. If I was getting money a Samyang TS 24 might be in order when it is out. Gas money instead would probably serve more use however.


----------



## Faxon (Jan 19, 2013)

In this wonderful country, I use my Federal Tax Refund (my money repaid without interest) to pay most of my Second Installment on my Property Taxes due April 10. No toys for ME.


----------



## cayenne (Jan 22, 2013)

extremeinstability said:


> Wild guess between now and April I sell either my Zeiss 21 or Canon 100-400L to help pay my taxes. One of these years I'll learn to pay the quarterly estimates(like it matters). God I love 15% self employment tax, sigh. But yeah yay for all the deductions being self employed. If I was getting money a Samyang TS 24 might be in order when it is out. Gas money instead would probably serve more use however.


If you don't have one, you need to look into filing for a subchapter "S" corp. Using that, you don't have to pay the 15% SE taxes (SS and medicare) on *all* of your billable funds coming in.<P>
With S corp...you pay yourself a 'reasonable' salary (talk with CPA, IRS is vague on this, but not hard to figure out)....and you only pay SE taxes on that salary portion, the rest falls through at EOY on personal income and you just pay state and fed taxes on that.

For example, you bill out $100K. You pay yourself a reasonable salary of like $25K or so.
You pay SE taxes only on that $25K...at EOY the remaining $75K comes in through your personal taxes minus all your deductions, etc.

This is one great way to save a bit more of your tax money for yourself. Just get with a CPA and figure out what a 'reasonable' salary is. You needn't be greedy...it all works out.

HTH,

cayenne


----------



## extremeinstability (Jan 22, 2013)

Thanks for the heads up Cayenne. I'll have to look into that this year. I've always filed myself online but planned to go to a tax account this year and will bring that up.


----------



## cayenne (Jan 22, 2013)

extremeinstability said:


> Thanks for the heads up Cayenne. I'll have to look into that this year. I've always filed myself online but planned to go to a tax account this year and will bring that up.


It is a bit of extra paperwork, but worth it in the long run.

Much better at saving money that just the usual LLC they try to often push you into....

C


----------



## 7enderbender (Jan 22, 2013)

RMC33 said:


> So who is going to buy something fun with their tax refund?
> 
> Personally geting close to $4000 back and putting it towards a 7DmkII or 1Dx depending on the stats on the latter.




And what makes you think that everyone is getting a refund? I don't think I'll be making any major "investments" in anything fun any time soon. Especially since taxes just went up (despite what some people are trying to tell us).


----------



## sandymandy (Jan 22, 2013)

humph, not everyone lives in the US


----------



## ewg963 (Jan 22, 2013)

7enderbender said:


> RMC33 said:
> 
> 
> > So who is going to buy something fun with their tax refund?
> ...


Ditto that more taxes equals less money in your pocket I feel the weight.


----------



## jasonsim (Jan 22, 2013)

Well...I'm probably due a hefty return once all the exemptions and credits kick in...but, honestly, don't know of something I must have. Especially since I got a new 300mm f/2.8L II just before Christmas along with a 2x III, Gitzo 4 series tripod, Explorer tripod, and bunches of RRS stuff. Still looking to sell my 500mm f/4L IS. Maybe I'll set up a "baby sitters" fund so that I can make better use of the equipment I already have ;-). 

BTW, I think my paycheck was reduced by more than the 2% payroll tax increase. I'll have to wait until next check, but perhaps the payroll department was withholding amounts commiserate with falling off the fiscal cliff. Now that there was a fiscal cliff deal, perhaps the payroll dept. will catch up; wishful thinking I know.


----------



## RMC33 (Jan 22, 2013)

ewg963 said:


> 7enderbender said:
> 
> 
> > RMC33 said:
> ...



Yes my tax rate increased but so did the amount of deductions I can take for my consultancy and business. Learning good tax preparation over the years has given me the benefit of either paying very little ($100-200) or being owed due to a deduction/credit that I can take advantage of that I learn about. Sorry you are not getting refunds I had nothing but good intentions for this thread.


----------



## bvukich (Jan 23, 2013)

I'll be getting my return, and my annual bonus (hopefully not jelly of the month club) in quick secession; since I'm not sure the order I'll be purchasing in, I'll give the whole plan...

5d3 & 24-105/4L Kit
BG-E11
600EX-RT
Sigma 35/1.4
85/1.8
135/2L
An extra battery or two, CF cards, etc...


----------



## artsmalley (Jan 23, 2013)

I think I will get rid of my single 430EX Flash that I have been bouncing around and get three of the new 600EX-RT Flash units. Definitely want to learn more about off camera flash this year. The flash units and some other items like a decent diffuser, umbrella, and soft box are my most probable items...assuming the tax refund is large enough of course


----------



## Nazareth (Jan 25, 2013)

I'm goign to spend all mine on crack cocaine, oh wait, I'm not getting any tax return- dang it! I wanted ot be a drug addict! Shucks!


----------

