Tax Tips for Authors and Writers

The holidays are over, which means it’s time to start preparing for tax season. I want to begin by saying I’m not a tax expert, nor am I giving any kind of legal advice. However, one thing I have learned, through trial and error, is to save those receipts. Come April 15, it’s far better to have your tax preparer tell you that you can throw a receipt away because you don’t need it, instead of having him or her tell you that you won’t be able to claim a deduction you would have otherwise been entitled to because you don’t have your receipt.

Which Receipts do you need?

Generally speaking, if it’s an expense incurred in writing, publishing or promoting your books, you can deduct it. Your tax preparer will ultimately determine which deductions you can take, however he or she will want to see your documentation first. Therefore, you should keep your receipts for:

  • advertising expenses
  • book design services
  • book reviewers, (if you had to pay for a review)
  • editing services
  • photographers and illustrators
  • publishing services
  • research materials

Does your publisher charge you for copies of your books? If so, hang on to the receipts.

other potential deductions

Other expenses which may be deductible would include:

  • Book signing materials, such as tablecloths, display items and signage
  • Cell Phones, (if purchased for business use)
  • Computer hardware and software, (if purchased for business use)
  • Office supplies
  • Postage and shipping services, such as UPS
  • Website hosting

Do you work out of your home? If so, a portion of your rent or mortgage payments, and utility bills, may be deductible. Save those receipts.

Some authors, including yours truly, write genre books which may require special attire for book signings. For example, I write Old West historical fiction, and some venues where I sign my books require me to wear western clothing. Therefore, if I have to buy any special outfit or accessory for business use, such as a book signing, I keep the receipts, as it may be tax deductible.

Travel Expenses

Some authors have book related travel expenses. This would include travel for book signings, research or business meetings. Whether it’s across town or across the country, you need to keep track of your travel expenses, as they too may be deductible. These expenses would include:

  • Airfare
  • Hotels and lodging
  • Meals
  • Rental cars
  • Taxi fare

Business mileage is another tax deduction many us may forget about. You can document your mileage by either keeping a log book in your car, or via websites like Google Maps. Simply enter your address and the address of your destination, and the exact mileage will display on the page. Print out the page and put it in your tax files.

Remember too that authors and writers are not immune to tax audits. You should keep your final return, as well as all of your documentation, including receipts, on file for at least six years. Rest assured, if you’re ever audited, you will most certainly need your receipts. If you don’t have them, the IRS may disallow the deduction. They may also hit you with a penalty. It’s far better to have those receipts and not need them then the other way around.

For more specific information about taxes, please consult with a professional tax preparer, or the Internal Revenue Service.

Gayle Martin

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