Tax Write Off’s for Writers
This year I published my first book! A lot of hard work which had me take into consideration any business expenses I could deduct on my taxes.
The writing business is like any other business, and that means you get the benefit of business-related tax breaks. If you’re a writer and are earning money from your writing (or are at least trying to earn money from it), you can deduct most materials related to your writing venture. This includes pens, paper, printing costs, postage and other writing supplies.
Other deductible expenses that you should keep receipts for include writing-related travel costs, conference admissions, writing group or association fees, and business lunches—such as when you’re interviewing someone over lunch or dining with a potential client. Research materials (all those books, magazines and newspapers) are deductible, too. You may also deduct items such as a new computer or printer, though you may have to amortize the equipment deduction over a couple of years, so it’s best to consult with a professional tax preparer on those types of purchases. Feel free to download the worksheet I use to track expenses.
Also, it’s important to note that if you claim your writing as a business, the IRS expects you to start making money after a couple of years. So if you’re making minimal money, for tax purposes you may only be able to claim your work as a hobby, which would allow you to deduct expenses only up to the amount of income you’ve made from writing.
The key to tallying tax deductions for writing-related business expenses is to keep receipts and records for everything. That way, if you’re ever audited, you’ll have the documentation to back it up. And be sure to check out our blog post on home deductions you might have missed here.
When in doubt – consult with a tax professional.
We hope this was of help to you! And be sure to share it with any other authors you know.
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