Tax Tips for Writers

Writers being self employed has its advantages and disadvantages. One of the disadvantage is that being self employed costs us more than just a regular employee working for some other employer. This is just my own personal advice. I am not a CPA. It is amazing how much items that we writers buy over the months throughout the year that we can write off at tax time. So what can we write off at tax time? Make sure to check with your CPA since the laws do change every year. Here are some tips.

Documents

Make sure to have documents for everything that you want to write off at tax time. You need to have the receipts and also have a log for car mileage. You need receipts and other documents just in case you ever get audited by the IRS. You need to be able to back up with proof of papers everything that you do. Make sure to get a list from your CPA of everything that you can write off so you don’t throw out any important documents.

Advertisements

Any advertisements that you have such as business cards and brochures is a write off. Any website design software that you did buy to design your website then you can also write it off. If you pay someone to design your website for you then you can write it off also. Any domain costs that you pay each year and hosting fees each month is also an expense. You need to remember that anything that you do to promote your books or articles is an expense.

Supplies

Pens and Papers is also an expense. You can buy the most expensive pens in the store since it is a write off. You can buy the most expensive professional paper too. Most things such as envelopes and postage is another write off. Writing software is something else that is a write off. Any printers that you buy and the new ink also matters. Software that you buy to design business cards or if you hire someone to design and print business cards does matter too. The miles that you drive to the store to get supplies or to send mail does count so make sure to record it in a miles log.

Computers and TV

Desktop Computers and Laptop computers is also a nice write off at tax time. Any repairs or upgrades is an expense. You can buy a new wireless mouse or a nice nifty wireless keyboard since it is another write off. Make sure to check with your CPA before you buy a new computer they will let you know when it is the best time to buy a new computer. You can also buy a new TV if you use it only to watch DVDs or programs that is suppose to help improve your writing.

Office and Phone

The office space is a write off regardless of it being a home office or regular office. Your nice comfortable chair is considered an expense. The desk in your office is another expense. The decorations in your office count. Your office phone and cell phone expense is also another write off. Your Internet fee every month for Internet is also an expense so get the expensive high speed Internet.

Education and Magazines

Any education classes that you take is another write off so remember to save the receipts. It doesn’t matter if it is on line via the Internet or at a local college campus. If you get any business magazines that is for freelance writers or authors it can also another write off. Make sure to save the receipts for your yearly magazine fees.