Tax season is fast approaching. I hope you’ve been saving your receipts and keeping detailed records because I have a list of tax deductions for writers.
NOTE: These are for the US. Check with your country and a tax pro to see if you can use these as well.
- Self-publishing costs
- Laptop/Computer
- Software
- Ink/Printer
- Postage to mail out queries,
manuscripts, SWAG, etc.
- SWAG (any promo items)
- Business cards and postcards
- Ads (Any advertisements you pay for in
print and online.)
- Cover artist expenses
- Branding and logo design costs
- Memberships
- Subscriptions to writing magazines
- Books
- URL registration and web hosting
- Newsletter hosting fees
- Conference fees
- Class and workshop fees
- Expenses for events. (Book signings
and book launches.)
- Travel expenses (If you have to
travel for research or to attend conferences or do a tour.)
- Business lunches (When you’re
interviewing someone or with a client.)
- Research expenses (If you hire a
researcher.)
- Editing expenses (If you hire an
editor.)
- Publicist/press release group
expenses
- Legal expenses (If you hire an
attorney to look over contracts.)
- Tax preparation expenses
- Health insurance (Self-employed
writers can deduct “100% of their health insurance premiums.”)
- Office Supplies (paper, pens, even
office furniture)
- Phone, fax, and email expenses
- Home office space (within requirements)
*For more info on how to use home
office space as a deduction (especially if it’s in your bedroom), read this article by
Writer’s Digest.
NOTE x2:
You may not qualify for all of these deductions. If you’re not sure about one,
consult a professional.
SHARE:
Tax deductions for writers you know about and I’ll add them.
Wow. Thanks for this list. I didn't know you could use home office space as a deduction.
ReplyDeleteYou're welcome, Christine! I did a lot of research to find out what I could use as dexuctions.
DeleteThis is really good information. I didn't know there were so many deductions.
ReplyDeleteCongratulations! You won a copy of my book, Ten Zany Birds. Please email me at sherry.a.ellis@gmail.com and let me know where you'd like me to mail it.
I didnt know at first either.
DeleteReally? Yay!!! I will email you soon. :D
I didn't know one could use the above as tax deductions. Thank you for sharing.
ReplyDeleteIndeed you can. I really looked into to see if you could. Talking to a tax pro is still a must, though.
DeleteI know I probably should've claimed things like art supplies, permission to use copyrighted song lyrics, and my one professional cover artist as tex deductions, though since I took such a huge loss with production costs vs. actual sales, I didn't think it would be worth it in the long run.
ReplyDeleteThat's, of course, up to you. Usually including deductions help you to lower your cost or gives you a bigger refund. I know I had the same problem last year with few sales.
DeleteA good list indeed. I'm kinda lazy and haven't used much as a tax deduction lol if i ever made a ton then I would. Knew about how I could use some of my rent, heating costs, etc. as tax deductions though. Accounting brain is still up there haha
ReplyDeleteWhen you don't have as many sales, you may not need to claim so much but if you ever do, remember these. ;)
DeleteLast year was the first year I really had writing-related deductions, so I went to a professional so it was done correctly. She was asking about a lot of these things, and I was, like, "You can do that? Cool!"
ReplyDeleteIt is pretty cool finding out what they can do.
DeleteThanks Chrys for the lists, am halfway through my fourth poetry book, as I shall be spending Christmas alone hope to complete it then.
ReplyDeleteYvonne.
You're welcome, Yvonne!
DeleteFantastic list! I already use a couple of them for my 'other' business but had no idea that a few on your list were actually deductible; like health insurance! You just made my day, bless your heart! :-)
ReplyDeleteIt is, it is! Health insurance is actually one that tax professionals say is often forgotten.
DeleteGreat list, Chrys! Though, I must admit, when I read the word "tax," I almost curled up in a ball under my desk... LOL
ReplyDeleteI think we all want to curl up and hide when we see or hear the word "tax." LOL!
DeleteI've not used most of that, but I do keep track of all expenses. Neatly, of course. I want my accountant to like me.
ReplyDeleteIt's always good to keep track and to have neat records.
DeleteImpressive list you shared here as possible deductions. I know my husband when he was self employed doing music looked for each and every deduction possible :)
ReplyDeletebetty
It's always good to do that.
DeleteGreat list, but be careful, that home office thing has a catch to it. They've really become hard nosed about home offices. Especially if you use the same space for anything other than your writing. But as with all things IRS read the fine print. :)
ReplyDeleteI personally wouldn't claim a home office but I know there are certain requirements for it.
DeleteHi Chrys .. it's essential to use a tax accountant to make sure you're within the necessary limits etc ... and each country has different rules - again a necessity to check.
ReplyDeleteWell done for reminding us - we need to get organised and keep organised .. cheers Hilary
Yes, which is why I said to consult a tax professional to see if you qualify as everyone may not qualify for all.
DeleteKeep in mind that some might not be worthwhile - for example if you claim for office space in your home, you may have to pay higher insurance or taxes because it will be considered as partly a business space.
ReplyDeleteTea and cake should be tax dedictable as they're essential for my writing, but I've not (so far) been able to convince anyone official on tis point.
That's right. It's always good to consider what is worth claiming and a tax pro can help with that.
DeleteI think you covered most of the ones I use. I used to be able to write off CDs and DVDs used for "inspiration," but that one seemed dicey so I stopped doing it.
ReplyDeleteStock photos, photography, and gifts for editors, readers, people who've helped with our business, etc., are other possibilities.
I'd be worried about claiming CDs and DVDs too. But gosh, inspiration is so important to the writing process.
DeleteThose are great things to add to the list!
That's really great info. I'm sure a lot of people had no idea they could claim some of those things.
ReplyDeleteI'm sure. I hadn't. ;)
DeleteOh Chrys, don't make me think about tax stuff. I'm no good at it and it confuses me. ><
ReplyDeleteHaha! Sorry. :p
DeleteI had no idea we qualified for so many deductions. I hope this is true in Canada as well but I'll probably have to research that. Thanks for the reminder to keep receipts and deduct from income!
ReplyDeleteI'm not sure if it's the same in Canada. Sorry about that, but I like to think many of them would be.
DeleteI was skimming that list thinking I knew them all but now I have to check with my husband and see if we're deducting my health insurance.
ReplyDeleteIt would be a good idea to check.
DeleteHi human, Chrys,
ReplyDeleteMy human recalls the days when he had to check out for all the tax deductions he qualified for when he lived in Canada. Over here in the UK he doesn't have to worry about filling in tax forms of any description because it's the employers responsibility. However, if he actually wrote, your list would be of some help, even in the UK.
I'm rambling, which means, time to get the heck outta' here....
Pawsitive wishes and doggy kisses,
Penny xx
Indeed it would be different in the UK. And these only work for writers. ;)
DeleteI suppose I should get myself published, then. I don't think they take tax deductions for "hobby" expenses.
ReplyDeleteAll those years before I was published l wished I could claim these thing.
DeleteVery informative post Chrys. Thanks for sharing.
ReplyDeleteThanks! You're welcome. :)
DeleteI never considered these on your list when I filed for tax. I should! Thanks, Chrys!
ReplyDeleteYou're welcome, Claudine!
DeleteGreat list. Always consult your accountant or tax advisor! Now if I could just make enough from my writing on the side to worry about tax liabilities.
ReplyDeleteI know what you mean. Last year, I didnt make enough.
DeleteSigh. So much I could have deducted, but alas, I live in the wrong country.
ReplyDeleteI'm sorry. :(
DeleteThanks for the tips. Every little bit counts. :-)
ReplyDeleteAnna from Elements of Writing
You're welcome!
DeleteWow, I had no idea writers could get so many tax deductions.
ReplyDeleteNow if only I could become a self-employed writer full-time.
I hope you can. Jeffrey! :)
DeleteGreat tips. Thanks for sharing.
ReplyDeleteYou're welcome! :)
DeleteGreat post, Chrys. I kept track of expenses for two or three years, but don't deduct them any more. I was told that after a certain length of time if you didn't show a profit (which I never have) your writing is considered a hobby and you can't deduct expenses. I pay state taxes on what I sell myself, otherwise I don't do anything. It was a lot of work keeping track. Which reminds me I must see how much state taxes I owe. They've sent me the form already. Thanks for the reminder.
ReplyDeleteI don't make much either. I'm not sure how much I made this year yet and will probably only be able to claim a couple of these deductions.
Delete