Wouldn’t you know it!!
April 15, 2009By Qaey Williams
Here I have to post on Tax Day! For those of you in the United States, you all understand the importance of April 15th. Well, I’ll tell you, I have just completed my taxes and I’m warning you now, if you are an author you will definitely need to start getting organized.
Why do I say this? Because the information you’ll have to have on hand when you do your taxes after you start making a little money on your books will require a lot of careful record keeping. If you have the chance to talk with an accountant, make sure you take notes!
I am not an accountant, but I do know that as an author, I can write off my membership dues for Romance Writers of America (both the national dues and the chapter dues). I can also deduct conference fees, mailing costs, contest fees, mileage to and from meetings, travel expenses for conferences, etc.
Here’s my advice for today– get a notebook and envelopes and begin saving every receipt! Keep a detailed list of information associated with the receipts. Identify all expenditures in your notebook. I’m getting all my paperwork together now for next year (tonight’s 3 hour session to get my federal and state income taxes done was a big wake-up call.)
If any of you have advice for keeping the receipts and information organized and such, I would be most appreciative. Take care all and have a great tax day!
Hi Qaey. Actually, even before a writer makes money on their work, they can deduct these writing expenses. As an artist, a writer can take a loss for the year. For that last two years, I have kept track of my expenses for deductions. I save slips in a file folder and use an Excel spreadsheet for dates, amounts, explanations, etc. It’s worked out really well.
Qaey, I’m not organized at all. I put everything together in one big folder and when I’m ready to do my taxes, I sort them into piles.
Tami’s right. You can deduct even if you don’t make money. I also deduct any books I buy. Even when I buy fiction, I’m studying the trade.
Tami and Edie,
Yes, I know that you can write off expense even when you haven’t begun publishing, but the biggest problem you run into with that is after a specific amount of time your writing can be considered a hobby if you haven’t begun showing a profit for your work.
I’m glad you guys are keeping the receipts. I know that you can write off the cost of books (research)and meals taken after and before your chapter meetings can also be written off as a means of networking.