If you are itemizing your taxes and want to take writing expenses, you are going to need to file a Schedule C with the IRS. Note that if there is no income, the IRS will disallow all expenses unless you can show proof of a profit motive—that you are writing so you can make money. (Aren’t we all?) Also, remember that not all expenses are deductible. Be honest and be prepared to defend your expenses to the IRS. Here are some tips to help make tax time easier:
- Keep good records and keep them in a safe place.
- Keep all receipts. When in doubt, keep it.
- Keep log of expenses. For example, membership dues paid to which organizations; conference fees; contest fees; research books; etc.
- Keep track of contest entries, queries and submissions. For example, what you sent to what publisher and when. This log shows proof of profit motive.
- Keep copies of all correspondence especially from agents and editors.
- Keep business cards from conferences as they are proof that you are working on your writing.
- Document everything! When in doubt, keep it!
NOTE: This year, the deadline for taxes is Tuesday, April 17. Good luck.♥
Maria C. Ferrer writes contemporary romances under her real name, and erotica under the pen name of Del Carmen. Visit her at http://www.4horsewomen.blogspot.com/ or www.mydelcarmen.com.