Dec 13 2008
Taxes for Writers
It’s the end of the year and I’m thinking I should get a head start on learning how my income tax will be affected by my writing income this year. I haven’t sold a book or acquired any royalties, so I’ve skipped over the “learning curve” in those areas. I also haven’t been writing $2,000 articles with an expense budget. I’ve just been a simple article writer on the internet. I bet there are a lot of us out there.
What Income to Report
Apparently the answer to that question, is everything. However, if you made less than $400, you can simply place that amount on your 1040 tax form in the box for miscellaneous income. You then will get the standard deduction of 2% for that income and pay taxes on the rest. So, moving on as I made more than $400.
If you made more than $400 dollars you need to file a schedule D and Schedule SE (self employment tax) along with your 1040 form. Since I will be filing these additional schedules, I will need to know what I can deduct.
Writer’s Deductions
Office supplies
Postage
Professional publications/books (about writing)
Professional functions (writers conferences)
Professional classes (writing classes)
Office (figure out the percentage of space in relation to your house or apartment square footage you use for your office. It may be an entire room or just a corner. Multiply that percentage by what you pay for your rent/house payment. That is what you get to deduct.
Utilities (electric and/or gas, water, sewer is the same percentage you used for office rent).
Non-deductions
Oops! You can’t deduct the first phone line in your home.
You can’t deduct the internet fee (what?)
You can’t deduct cable TV
Hire a Tax Person or Go It Alone
I have to say that I hate tax, financial, stock, accounting matters. My mind tends to wonder. I can keep accurate records, however. So, although I’m a do-it-yourself kind of gal and I usually do our taxes because I hate paying the exorbitant amount required to have someone else do them, this first year I will have a professional complete my tax forms. With the IRS, it’s always better to be safe than sorry.
