Some common tax deductions for writers

February 27th, 2019 → 8:20 am @ // No Comments

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Here are some common tax deductions for writers, authors, bloggers and the self-publisher:

  • Advertising and promotional costs. These include your website, ads, bookmarks and business cards.
  • Commission and fees. Some authors put their Paypal or shopping cart fees from book sales in this category. The IRS does allow merchant fees to be included in cost of goods sold. Some authors prefer the fees to be more visible so they know what they are spending on merchant fees.
  • Car expenses. Use a mileage log or a calendar. The IRS requires the mileage records be kept contemporaneously, meaning you should not rely on your memory. Estimates are not allowed; there must be actual mileage records. The IRS sets the per mile rate and adjusts it annually. For example, as of January 1st, 2018, The IRS’ standard business mileage rate is 54.5 cents/mile.
  • Contract labor. This might include your editor, graphic designer, or anyone you hire as an independent contractor.

 

My free ebook will help you determine which of your author expenses are tax deductible. Get it by signing up for my email list.

 

 

Or better, yet, my book Business Tips and Taxes for Writers will give you a lot more information. It’s been updated to include the tax law changes for 2018.

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Carol Topp, CPA is the author of Business Tips and Taxes for Writers


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