The Portrait System Podcast
Episode: Tax Tips for Photographers: Deductions, Mileage, and Year-Round Prep
Host: Nikki Closser | Guest: Heather Licey
Date: February 24, 2026

Episode Overview

In this insightful episode, host Nikki Closser delves deep into the often daunting topic of taxes with expert guest Heather Licey—a seasoned portrait and wedding photographer, tax prep educator, and bookkeeper. Together, they demystify tax challenges unique to photographers and creative business owners, offering actionable advice on deductions, tax prep strategies, and year-round financial habits. The conversation is candid, relatable, and filled with practical takeaways to help you keep more of your hard-earned money while staying compliant and stress-free.

Key Discussion Points & Insights

1. The Importance of Regular Financial Check-ins

• Don’t Wait Until Tax Season: Stay proactive by reviewing financials monthly instead of scrambling in February or March (04:42, 07:43).
  • Quote: “If you’re waiting till February or March to make any decisions, you’re too late because the year is already done.” —Heather (00:35, 07:43)
• Track Your Profit and Loss: Use reports or spreadsheets to monitor income, expenses, and potential deductions.
• Automate Tax Savings: Set aside a specific percentage (20-30%) of all income into a separate account for taxes.
  • Quote: “Set money aside automatically...that is a game changer so that you’re not getting that sticker shock when April comes.” —Heather (09:27)

2. Building Financial Discipline

• Facing Finances Head-On: Avoidance breeds stress; clarity brings relief.
  • Quote: “There’s nothing like knowing exactly where you’re at instead of avoiding it.” —Nikki (10:09)
• Audit Small Expenses: Recurring small purchases and forgotten subscriptions can drain profits. Regularly review spending.
• Tools for Clarity: Bank statement audits, expense tracking apps (Evidence, Mint, Expensify, Zoho Expense) and receipt scanners minimize chaos and forgotten deductions (16:19).

3. Bookkeeping—DIY, Hire, or Trade?

• When to Hire a Bookkeeper: You can hire out or trade photography for bookkeeping services, which can range widely in price based on complexity ($150–400+ per month) (17:42, 19:41).
  • Memorable moment: Nikki’s story about trading photo shoots for bookkeeping services and other barter deals (17:42).
• The Value of Professional Help: Bookkeepers can offer immediate answers and peace of mind, especially when tangled with IRS communications (20:27).

4. Common and Overlooked Deductions

• Standard Deductions:
  • Education and training
  • Client gifts (up to $25 per person/year, unless branded as marketing)
  • Software/subscriptions (CRMs, Lightroom, Adobe, Canva, website domains)
  • Equipment and gear
  • Home office expenses (proportion of space and utilities, must be dedicated solely to the business)
  • Cell phone (percentage of business vs. personal use)
  • Meals (only if with clients or for business purposes; not solo “work sessions”) (24:41)
• Easily Missed Deductions:
  • Mileage is frequently overlooked; use an app like MileIQ to track (46:04).
  • Client gifts can sometimes fall under marketing if branded (21:55).
• Not Deductible or Tricky:
  • Most clothing, unless logo’d as a uniform or used exclusively as a prop in the studio (27:53).
    • Quote: “If you’re buying dresses...that they can have for the shoot—and then they leave it...that becomes like a prop. And so you can deduct that. But it’s gotta stay in your studio.” —Heather (27:53)
  • Coffee/Meals alone are usually NOT deductible (29:34).
  • If deducting mileage, you cannot also deduct direct auto expenses (30:40, 47:02).

5. Special Deduction Scenarios for Vehicles

• Vehicle Purchase Deduction: You may write off (under Section 179) vehicles over a certain weight. But, don’t buy something just for the deduction—think profit first (30:40, 31:09).
  • Quote: “Don’t spend recklessly...don’t just try to spend money to get deductions because you still want to make a profit.” —Heather (32:40)

6. Bookkeeping and Tax Tools

• Starter Options: Beginners can use Heather’s tax prep spreadsheet (available in her shop), or free tools (34:23, 34:44). As business scales, consider apps like QuickBooks or Wave.
• Mileage Tracking: Beyond QuickBooks, Heather recommends MileIQ for simplicity and potential tax savings (46:04).

7. Legal Structure: LLC vs. S-Corp

• LLC for Protection First: Don’t be a sole proprietor longer than you have to; an LLC separates personal and business assets (37:03).
  • Quote: “Don't recommend doing it [sole proprietorship] for very long because you have no protection over your personal assets.” —Heather (37:03)
• S-Corp Election: Only move to S-Corp status when profit and other circumstances truly warrant it. It brings new complexities and costs.
  • Quote: “It is not a badge of honor to level up to being an S corp...it’s a math decision you should work with your CPA on.” —Heather (39:43)

8. Sales Tax Complications

• Local and State-Specific: Whether you charge sales tax on goods, services, or digital products depends on state/county law, so always consult a pro (44:10).
  • Quote: “Sales tax is just a pain in the rear because not only is it different percentages...but what you charge sales tax on is different per state.” —Heather (44:10)

9. Final Actionable Advice for Beginners

• Set Up Systems Early: Track everything from the start and automate setting aside tax money—even when starting small (48:57).
  • Quote: “It’s never too early to start tracking things and setting money aside for it.” —Heather (48:57)
• Educate Yourself & Ask Questions: Don't hesitate to ask your CPA/bookkeeper anything, from large purchases to software expenses.

Notable Quotes & Memorable Moments

• “Look at your numbers monthly instead of waiting till the end of the year.” —Heather (00:35, 07:43)
• “Set money aside automatically...it just takes out that emotional panic and stress.” —Heather (09:27, 11:00)
• “If you’re avoiding, you’re not alone...hitting it head on and facing it and making a plan is life-changing.” —Nikki (10:09)
• “It’s never too early to start tracking things and setting money aside for it.” —Heather (48:57)
• “Don't spend recklessly...don't just try to spend money to get deductions because you still want to make a profit.” —Heather (32:40)
• “It is not a badge of honor to level up to being an S corp... It’s a math decision.” —Heather (39:43)

Key Timestamps

• 07:43 – Year-round tax prep: Why waiting until tax time is too late
• 09:27 – Automating tax savings and emotional impact of avoidance
• 16:19 – Receipt/app tracking and tech tips
• 17:42 – Bookkeeping: Bartering, costs, and value
• 21:55 – Core deductions (education, gifts, subscriptions)
• 24:41 – Home office, meals, and cell phone deduction rules
• 27:53 – Deducting wardrobe and studio props
• 29:34 – Common deduction mistakes: clothing, meals, vehicle expenses
• 30:40–32:40 – Vehicle deductions and when (not) to buy for tax purposes
• 37:03 – Legal structures: sole proprietor, LLC, S-Corp
• 44:10 – Sales tax pitfalls and the importance of location specificity
• 46:04 – Heather’s top tax tool: MileIQ for mileage tracking
• 48:57 – Final advice for new business owners

Resources & Where to Find Heather

• Instagram: @heathermarielicey
• Conquer Community: theconquercommunity.com – Education and community for photographers (monthly calls, Facebook group, annual event)
• Heather’s Tax Prep Spreadsheet: For sale via her online shop (34:44)

Overall Tone

Friendly, accessible, and supportive, with a candid “real talk” energy. Both Nikki and Heather share personal stories and practical wisdom, making daunting topics approachable and even fun—proving that tax prep doesn’t have to be something photographers dread.

This summary captures the core insights and actionable steps from the episode, ideal for busy photographers and creative entrepreneurs ready to level up their business finances!