This article was originally published on this site in January 2015, but I have updated it since I’m now going to include a recent episode of A Writer’s Journey podcast in which my co-host, Terrance Zepke, and I discuss tax issues specific to writers. Regardless of when you find this article or hear this podcast, it’s never a bad time to think about organizing your receipts and establishing yourself as a professional writer if you intend to publish and market your work.
Let me say right off the bat, I am not a tax professional. As such, in this article I am in no way pretending to dispense advice about what to do given your unique business status and tax situation, but I am happy to tell you the sorts of things that you can consider if you are genuinely trying to build a profitable writing business and save money on your taxes while you’re at it.
This spring, my novel, The Smuggler’s Gambit, made its debut. The book is being sold through various outlets, which means now I can hopefully start to recoup some of my publishing expenses (like buying ISBNs and hiring a copy editor), but regardless of how successful it is, it was still written, edited and polished for the purpose of marketing and selling it. That means that any money I make on the book is business income, and any expenses I had last year related to honing my craft as a writer, or getting my book ready for publication, are legitimate business deductions.
Fortunately, I made sure to keep track of all of my writing business-related receipts last year so that I could include those expenses on my 2014 taxes. You’d be surprised how it all adds up.
Here are examples of some of the expenses writer’s commonly have:
Travel
If you make any trips (such as to a writing conference, speaking engagement, or something else specifically related to your book, such as research) save your receipts. Some examples are:
* Conference fees
* Meals
* Gas
* Lodging
If you drive for something related to your writing business, keep a record of your miles in a notebook or file so that you have documentation come tax time.
Writing Tools
As a writer, the tools of your trade are tax-deductible.
Some examples might be:
* Writing software (like Word or Scrivener)
* Pens, pencils, highlighters
* Notebooks and journals
* Paper
* Index cards
Business and Marketing Tools
* Computer used for writing and managing your writing business
* Software used to manage your writing business (such as Quickbooks or other accounting software)
* Dropbox or other cloud computing subscription – You want backups of your work! Don’t just save them on your hard drive.)
* Domain name(s) – You might have one for your personal writer website, another for your publishing company if you are indie, and yet another for specific book titles (if you choose.)
* Web hosting – You’ll need a way to host those websites. GoDaddy and HostGator are both good options.
* Postage – This can add up when you send out copies of your manuscript to beta readers.
* Mailing Supplies
* Photocopies – If you’re doing research at a library or archives, you might need to make photocopies of relevant information found in reference books.
Professional Services and Fees
You might not need these if you’re publish...
