The short answer is, yes. In many cases, you’re able to claim a headshot of yourself as a legitimate business expense.
There are only a few weeks left in this year to squeeze in some legitimate tax deductions. The cost for a photo session can be considered a deductible expense that lowers your taxable income. The IRS considers photography fees as a way of marketing yourself/your business. Incurring this expense is a way to attract future clients.
As you’ll see from my website, photographing headshots is my specialty and has been for over 10 years. I sometimes get asked this question, “Are headshots tax-deductible?” So, I decided to do a little research of my own. This way, I can refer clients to this page that I’ve created. I mean, who wants to talk taxes when you’re trying to smile your way through a photo shoot.
If you’re a self-employed freelancer and complete form: Schedule C Form-Profit or Loss from Business (Sole Proprietorship), then you can claim headshots as a legitimate expense. In the “Other Expenses” section of the form, you’d include something like: “Photographers fees/ Marketing photos”. Those with an LLC, LLP, Partnership or Corporation do not qualify for this deduction.
If your face is part of promoting your business in any way, then this is a pretty clear-cut cause. It could be as simple as a bio photo on your website or business card or updating promotional posts on social media. Actors are the perfect example. Other clear-cut occupations include:
Lawyers, doctors, finance advisors, chefs, masseuses, yoga instructors, personal trainers, authors, architects, journalists, hair stylists, small business owners, interior designers, videographers, musicians, therapists, and life-coaches. And, even the accountant, who does your taxes, is able to claim their headshot as a legitimate expense.
Thinking in terms of branding, “Does my image provide value to (at least part of) the way I earn my income?” Having a record of professional photography shows that you take your vocation seriously. You’re raising the standard of your brand, your small business, and yourself. Therefore, it actually looks good in the eyes of a tax audit. Branding is advertising, after-all. It’s perfectly acceptable to try to differentiate your business from the competition.
If you own a business, you can also deduct the cost of a photographer’s services. As long as you are a partner of a partnership or a shareholder/owner of a corporation and the photographer’s services are used by the business for marketing purposes. Headshots can be deducted as a business expense. Again, those with an LLC, LLP, Partnership or Corporation do not qualify for this deduction.
What the IRS doesn’t like are hobbyists who regularly make a “Profit-Loss” on the Schedule C Form year after year without showing evidence of serious profit making intentions.
As noted on the IRS.gov website:
“The tax law allows businesses to deduct expenses that help them bring in new customers and keep existing ones. These costs may include expenses for advertising and marketing. Here are some details about this valuable tax deduction that can help small businesses save money on their taxes.”
Advertising and marketing costs must be ordinary and necessary to be tax-deductible.
An ordinary expense is one that is common and accepted in the industry.
A necessary expense is one that is helpful and appropriate for the trade or business. An expense does not have to be indispensable to be considered necessary.
Here are a few advertising expenses that are usually deductible:
Reasonable advertising expenses that are directly related to the business activities.
An expense for the cost of institutional or goodwill advertising to keep the business name before the public if it relates to a reasonable expectation to gain business in the future. For example, the cost of advertising that encourages people to contribute to the Red Cross or to participate in similar causes is usually deductible.
The cost of providing meals, entertainment, or recreational facilities to the public as a means of advertising or promoting goodwill in the community.
“Generally, small businesses can't deduct amounts they pay to influence legislation, which includes advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate.”
https://www.irs.gov/newsroom/small-business-advertising-and-marketing-costs-may-be-tax-deductible
Due to unfortunate tax laws that were implemented in 2017, a wider range of deductions are no longer available. The Tax Cuts and Jobs Act was signed into law in 2017. This new tax law completely eliminated the Unreimbursed Employee Business Expenses deduction for 2018 through 2025. This deduction was included as part of the Miscellaneous Itemized Deductions section of the 1040, and job search related costs were recorded on this schedule.
Therefore, if your headshot is only being used for job-searching on LinkedIn, it can’t be written off. Also, if you’re earning a salary, and your employer asks for a headshot but doesn’t pay for it, you’re unable to deduct it on your income tax return. Tax laws are always changing, and these deductions may become available again in 2025.
In running my own photography business for over a decade, I’ve developed some skills I didn’t think I would ever have. Like doing my own taxes! Who knew? To help you clarify some tax-y terms, here’s what I learned:
“A tax deduction and a tax write-off refer to the same thing. A tax deduction, or tax write-off, lowers your taxable income and tax liability. A deduction is usually a qualified cost you incur during the tax year to subtract from your gross income to calculate your adjusted gross income.” What IS a whole other sector is what’s called a “tax credit” <insert brain exploding emoji here>.
Of course, I'm just a photographer and not an accountant. So, to hear directly from the source, here’s a fact sheet from the IRS: https://www.irs.gov/pub/irs-pdf/p535.pdf. Of course, when in doubt, contact a professional tax advisor.
I’ll be in NYC for now until the end of the year and available for bookings and happy to provide you with a receipt.
