I have questions please. In regards to self-publishing, can one claim
those on taxes and if so in which section(s)?
For instance, if I purchase marketing options and/or order copies of books for marketing purposes- I heard this could be claimed?
What about publishing packages as well?
In addition, I hired a freelance artist for cover and interior illustrations. Could this all be for marketing and/or business related?
Thanks very much!
Yes, all the expenses you mentioned are tax deductible business expenses. Marketing, books, artists, publishing packages, etc all are tax deductions.
Which section of your tax return depends on the type of business. If you are a sole proprietor (most self publishers just starting out are sole props), you’ll list your income and expenses on Schedule C of your Form 1040.
Chapter 13 Income Taxes in Business Tips and Taxes for Writers will be a big help to you in preparing your tax return, but I recommend you also hire a tax professional to help you set up your business and get every deduction you are allowed!
Good luck to you!!