Okay, okay, it’s “death and taxes”… unless you’re a writer, in which case, it’s murder and taxes. I know, a lot of people dread April 15th. Not me. I revel in it.
No, I’m not an accountant making bank (and getting very little sleep), AND as such, take anything I say with a grain of salt. This is not legal advice. The simple whatsit of it though is that it comes around every April 15th, and it’s the day I celebrate as I look over the evidence of a valid career choice.
Every year, I eavesdrop (sometimes I participate) on/in a conversation with other writers about writing deductions. We can argue some of those points all day long, but the fact of the matter is, like any other business, you can write-off a lot of expenses.
Don’t take my word or advice. Go here https://www.irs.gov/pub/irs-pdf/f1040sc.pdf to print out a Schedule C for all us simple filers, and that pretty much tells you what you can write off as deductions on your writing income. It’s filled with lots of fun little tidbits like:
- Advertising – what? You didn’t see a return on all those FaceBook Ads? No problem. You can still count them as a deduction. FaceBook, BookBub, printing costs of promotional materials, give-aways, all those pens with “Sofie Couch” that went into one old lady’s handbag at your last book signing. Yes. Even that.
- Commissions and fees. Do you stock your books in a Mom and Pop shop that charges you a percentage upon sale? Did you have to actually pay for booth space at the local church bazaar? Those are fees. If you use Square to run sales yourself, Square charges you a fee. That’s a write-off.
- Contract labor. That would be the graphic designer who made your cover or formatted your self-published book. Did you pay a freelance editor? They’re not an employee. They are contractors. Write it off.
- Insurance. Do you insure your stock? Do you have insurance on your LLC to protect yourself from whatever harm may befall you in that big bad writing world?
- Legal and professional services. Do you have an agent who charges you a percentage of your earnings? Do you use a lawyer to read over your contracts? Those are legit write-offs. Don’t take my word for it. Look it up.
- Office expenses. Hahaha! I love this one. Every trip to Staples gives me pleasure when I get to write at the top of my receipt, “Writing—Office Expense, 2019.
- Rent or Lease. Do you rent dedicated space for your writing? Yep. Write it off! In my hometown, there are several cooperative writing spaces that charge a nominal monthly fee for use of an “office” during the day. Maybe that’s something to consider next year.
- Repairs and Maintenance. Well, not this year, but hopefully, next year, I will have my dedicated space all ready to roll out the carpet, then you can bet I’m going to have some “repairs and maintenance.” (First, I need power and insulation, but that’s another blog post.)
- Supplies. This is my other favorite one. Notebooks, pens, ink cartridges, etc., etc. Again, save your receipts!!!
- Taxes and Licenses. Yes, you can write off “taxes” on your taxes. I have a business license from the county, a Limited Liability Corporation certificate, and sales tax.
- Travel and Meals. This one is also fun, because, heck, you should travel for your writing just so you have an excuse to use it. Going to a writer’s conference? Deduct. Going to a Writer’s Chapter meeting more than an hour away? Kerching. You can write off ½ of the cost of a meal, hotel accommodations, and mileage!!! I love the mileage thing. I probably never take as much on this as I’m allowed, but only because I want proof of my mileage backed up by a receipt, so every trip to Staples for office supplies, every trip to the Post Office, every trip to the printers for test copies of my book cover… Those, with the accompanying receipt, is a mileage deduction. The rate per mile can change each year, so look it up. You’ll be shocked how much you can write off in mileage.
- Wages. I should be so luck as to have a personal assistant who posts for me to social media, answers my e-mail and sets up book events. But if I did, I would definitely deduct that person’s wages, as well as the expenses associated with having an employee – the payroll tax accounting, the employer taxes, the cost of driving back and forth to aforementioned payroll tax accountancy.
And THAT’s all before you deduct expenses for an at-home office. Now is the perfect time to start organizing a file for next April 15th.
So don’t dread tax day. Celebrate it! And celebrate your active pursuit of a career as a writer. And as always, save those receipts!
Now, go write some words!