The Writer’s No-Stress Guide to Tax Deductions

      Everything You Can Write Off!

By Dorajane Apuna-Grummer

 

Hey there, fellow writer! Let’s talk about everyone’s “favorite” topic: taxes.  I know, I know—but stick with me! This guide will help you keep more of your hard-earned money in your pocket. Whether you’re just starting out or you’re a seasoned author, we’ve got you covered.

First Things First: Yes, You’re a Business!

Even if you haven’t published it yet, you can still deduct writing expenses. The IRS considers you legit as long as you’re actively pursuing writing as a career. So, if you’re querying agents, taking classes, or working on your manuscript—you’re in business!  Even though there have been many people subscribing to the old “Three in Five rule” (Must make a profit after five years or it is a hobby. That is not always true.  If you keep good books and show you are operating as a business, they will move forward.

Show Me the Money: Your Writing Income

Here’s the scoop on reporting your income:

  • Got paid $600+ from one place? You’ll get a 1099-NEC formUsing PayPal or Venmo? Watch for a 1099-K
  • Even if you made less than $600, you still need to report it (sorry!)

The Home Office: Your Creative Castle

Working from home? You might be able to deduct part of your housing costs! Here’s the deal:

  • Need a dedicated space (sorry, kitchen table doesn’t count!)
  • Calculate what percentage of your home is your office
  • Can deduct that percentage of rent/mortgage, utilities, and other home costs

The “Heck Yeah, That’s Deductible!” List

Tech Stuff You Need

  • Computer equipment (yes, that shiny new laptop counts!)
  • Writing software (Scrivener, anyone?)
  • Cloud storage (got to back up ole that manuscript!)
  • Website costs (time to flex your author platform!)

Office Goodies

  • Furniture (get that ergonomic chair!)
  • All those pens and notebooks (we know you have tons)
  • Printer ink and paper (because sometimes you need hard copies)
  • Those fancy filing systems (organization FTW!)
  • Don’t forget the clack-clack keyboard,
  • Any software, paid in one payment or the monthly fees

Your Professional Squad

  • Literary agent fees
  • Editor costs
  • Cover designer fees
  • Formatting wizards
  • Legal eagles and number crunchers (they did review your contracts, right?)

Getting Your Name Out There

  • Website stuff (hosting, design, the whole shebang)
  • Email newsletter services
  • Social media ads (got to get those readers!)
  • Book launch party expenses (celebrate good times!)
  • Promo materials (bookmarks, anyone?)

Research & Learning

  • Books (research purposes, of course!)
  • Online courses (always learning!)
  • Writing conferences (network away!)
  • Professional memberships (join the club!)
  • Organizations, fees, webinars etc.

On the Road Again

  • Conference travel
  • Book tour expenses
  • Research trip costs
  • Local writing meetups
  • Parking fees
  • Hotel stays
  • Half of your meals (IRS rules, not ours!)

Staying Connected

  • Business phone costs
  • Internet (because online research is real!)
  • Zoom subscriptions (virtual writing groups count!)

Special Goodies for Published Authors

Already published? You get extra deductions:

  • Donated books (at retail value—nice!)
  • Speaking engagement costs
  • Book signing expenses
  • Shipping to bookstores
  • Self-Publishing costs

Keeping Track of It All (Without Losing Your Mind)

  • Save those receipts! (7 years’ worth—fun times!) #
  • Track your miles
  • Keep good records
  • Consider using an expense tracking app
  • Separate business money from personal cash

Important Dates to Remember

Mark these on your calendar:

  • January 31: Watch for those 1099s
  • April 15: The big day! Tax returns due
  • June 15, September 15: More estimated taxes
  • October 15: Extended filing deadline

Self-Employment Perks

Being your own boss has benefits:

  • Write off half your self-employment tax
  • Health insurance might be deductible
  • Retirement contributions could save you money
  • Possible 20% deduction on your income (thanks, tax law!)

The “Keep It Legal” Disclaimer

While this guide is super helpful, tax laws can be tricky, and they change faster than publishing trends. It’s always smart to check with a tax pro for your specific situation. Think of them as your tax editor—they’ll catch the stuff you might miss!

Pro Tips for Tax Time Success

  1. Track expenses as you go (future you will be thankful!)
  2. Keep a separate bank account for writing income/expenses
  3. Save about 30% of your writing income for taxes (That way, even though you have deductions, you have the cash to pay the tax.)
  4. Consider quarterly tax payments to avoid a big bill
  5. When in doubt, save the receipt!

Remember: You’re not just a writer—you’re a small business owner! Own it, track it, and deduct it. Your future self (and bank account) will thank you.

Questions? Confused? That’s totally normal! Tax stuff can be overwhelming. Consider working with a tax professional who can help you maximize your deductions while keeping everything legit with the IRS.  It is important to keep some kind of tracking system.  You probably won’t remember what the $29.00 receipt was from last January unless you either write on the receipt, put it on a spreadsheet or in a journal.  This all means money in the pocket. So as bad as it seems, Whatever method you decide to do…track it.

Now go forth and write—and save those receipts! You need to keep as much as you make and still give Uncle Sam his due.

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For more guidance on taxes for writers go to:  www.irs.gov