It’s the most dreaded day of the year…tax day. Have you
filed your taxes yet? Still trying to get them in?
If you’re a writer, there are some great potential benefits
to consider when filing your tax returns, and it can save you some money in the
long run. For instance, if you attend
writers' conferences headed by non-profits you can list them on your tax
returns and get credit for your registration fees. So long as you’re in the
budding stages of writing and not making a profit, your taxes on writing should
be nil. If, however, you are fortunate enough to start making money as an
author you can declare yourself a corporation, which many bestseller authors
eventually do to avoid paying steep taxes on their book sales. These are just a
few of the many benefits writers can take advantage of when doing their taxes.
But remember, the best part of all is that it costs nothing to blog!
So how do you incorporate your writing career into your
taxes? Any good practices/techniques that you’ve discovered when declaring your
writing expenses? Any strategies you plan to employ to save yourself some money
next year?
Ooo... I hope I'm lucky enough to incorporate my writing into my taxes someday! LOL. But yes, taxes are done. I'm the one who does them in our family, (and I stress about them!) so I get them done as soon as possible so I can be sane. ;-)
ReplyDeleteA friend of mine is an accountant and writer and she told me I could take some writing expenses, like conferences, professional organization fees and such off my taxes, as long as I was querying or making an effort to get published during the year. Saved me some money. :)
ReplyDeleteWe've used an accountant for years, and since I do receive royalties on my books, I'm really glad I don't have to deal with taxes.
ReplyDeleteSweet! I'm totally writing off my writers conferences :) Great cartoon!
ReplyDeleteThat's what my accountant was saying I should probably consider--the corporation thing--since I've got a book coming out this year.
ReplyDeleteEEP need to start thinking about this! I do it for my jewelry biz, so this is next.
ReplyDeleteIt's a good thing I don't do the taxes at my house, because I'm already confused! Luckily my husband knows the ins and outs of all that legal stuff and all I have to do is sign the form.
ReplyDeleteIt's not something I've worried about for the past few years. I do bring my 1099's with me when we get our taxes prepared, of course, but my income hasn't affected our taxes.
ReplyDeleteHowever as of August, I'll be supporting my family of 4 on my income from editing and writing. And, since those aren't taxed, I set aside a certain percentage in a separate account just for taxes. That way, we won't be caught off guard when we file taxes next year.
I'm guessing this will be the last year we get a return. Next year, I'm assuming we'll pay.
I discovered in 2010 that my mileage to writers groups and conferences and even books I buy are all tax deductible (as were membership fees and conference fees). Ever since, I've been taking the deductions. All I have to do is show proof that I'm seriously seeking publication, so I have copies of all my rejections letters! Hopefully next year I'll have income to offset some of those expenses and then I won't have to worry about showing proof.
ReplyDeleteI haven't worried about it yet since I haven't made any money on my writing (well not much anyway). But since that will change later this year, I'll need to check into Canadian tax laws. I know I can write off books and conference fees.
ReplyDeleteOh...taxes...what fun! :) Yes, I've filed already and had fun with all the profits and loss. :)
ReplyDeleteI don't normally deal with ANY of the taxes and bills in the house, lol. But I've set up as my own business to stop Amazon taking 30% off in tax since I'm in the UK. I will have to get used to this sort of thing!
ReplyDeleteI've started keeping track of expenses. Thanks for the tips!
ReplyDeleteI'm not at a stage where I need to worry about that yet ;)
ReplyDeleteLove the cartoon -- the more write off the better! Thanks for the tips.
ReplyDeleteYup, at least blogging is free. :)
ReplyDeleteTax day is my favorite time of the year. It's time when I can get some extra money to fund small hobbies.
ReplyDeleteI waited until the last minute again. No refund for me. I had to pay.
ReplyDeleteHi Mark, Blogging isn't really free. It takes a lot of time and time is money. But it is a lot of fun and does offer writing practice with potential feedback. Thanks for the tax tips. I hope someday to have reason to be able to use such tips. God bless, Maria from Delight Directed Living
ReplyDeleteThank God blogging is free. I have an accountant who helps me out.
ReplyDeleteYikes! This is a sore subject. I haven't lived in the US for 20 years, but did you know that non-resident citizens are supposed to file taxes anyway? I didn't know for about 18 years. Now I have nightmares the IRS is gonna come get me! 0.o
ReplyDeleteHopefully, everyone's taxes turn out okay this year:) Glad to share some tips and even more glad to have learned some from all of you:)
ReplyDeleteI file a corporate tax return for a publishing entity and also report author expenses on my personal return. My background is in accounting, so I'm fortunate to know some things.
ReplyDeleteIf only things would be as easy as it is for Snoopy. On the other hand, filing tax is a good practice to develop your sense of responsibility. And don't we enjoy using our ITRs to the last bit? :) Ergo, we should accept this as part of the real world. Getting dramatic, eh? Anyway, after a few years of filing you'd probably get the hang of it. About your last question, first thing to know is that filing goes differently for a pro and a hobbyist, if ever you incorporate your occupation.
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