“Author Taxes”

If you are pursuing a career as an author and it is not a hobby, then you can write certain expenses off your taxes.

Start now and keep up with these items each year:

Basic Office Supplies: Pencils, pens, printer paper, ink, notebooks, paper clips, staples, etc… Do not write off your kids schools supplies.

Office Equipment: Laptop, computer, printer, fax machine, flash-drive.

Postage: Stamps, shipping, shipping supplies.

Research: Magazines, books, dictionaries, thesaurus, trade subscriptions.

Production: Software, music, (book trailers) graphics, illustrations.

Subscription: This should be a biggie! Remember the number one tool of every author…READ! All those books you are buying from other authors, Amazon, and bookstores are write-offs. Reading books is directly related to whether or not you will be successful. (Profitable.)

Phone Line: Whatever phone is your “Author Line.” For most author’s, it is their cell phone. (Not your spouses cell phone.)

Internet: Includes anything you spend on web sites, web marketing, online advertising and promotions, web hosting, blogs, monthly fees.

Mileage: Keep a round-trip log of when you drive to meetings that are directly related to your career. This includes when you see your publisher, agent, do speaking engagements, book signings, and all promotional events.

Utilities: You will need the square footage of the house or apartment you live in and the amount of space dedicated to your work. Save all heating/electric bills. A percentage will be written off.

Rent/Mortgage: Same as utilities, you will need the square footage of where you live and what is used for you to work. A percentage will be written off.

Upkeep: Lawn service if you work at home, painting your office, new shelves, light fixtures.

Health Insurance:If you are a full-time writer, then probably you are paying for your own health insurance. Keep a record of all doctor visits. Your pharmacist will print out what you paid in prescriptions for the year, which makes it easy. Keep a round trip mileage record to the doctors office, separate from your author’s log.

Advertising: Ad in the paper, billboard, Internet promotions, or signs that you stick on your front lawn.

Meal Expense: Be careful with this. Only use if the meal was necessary, in conjunction with your traveling to an event or meeting. If you were going to eat anyway, then it doesn’t count.

Gifts to Charities: Monetary donations, books that you donated to libraries, schools, events, charitable organizations. Good example is a gift basket.

Education: Any classes you take on writing, PR, marketing, bookkeeping, etc…

Publishing Charges: Anything you pay a publisher, agent, or book manufacturer.

Business Attire: That outfit you purchased for your award ceremony, new clothes for events, interviews, or photo shoots.

Always check with your accountant or tax advisor for more advice.

Here is something else to think about. You have three years to make a profit as an author. After that, the IRS will look at your career as a hobby. That should motivate you to sell those books.

Ron Knight

Novelist and author of Untraditional Publishing

Co-Founder of UP Authors

Ron Knight

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Comments

  1. I must say this is a great article i enjoyed reading it keep the good work 🙂

  2. I am glad you enjoyed the article. If you have any articles you would like to see or tips you would like to share we would be happy to hear them.