Here are some tax tips I have learned through the years. However, I am not a tax expert, so please check with a tax preparer (enrolled agent, registered/licensed tax preparer, or CPA), the IRS, and/or your state tax agency if you have any questions. If you are actively writing and seeking publication, you are a professional freelance writer and have a business that entitles you to deduct expenses.
Many of you may think the work involved isn’t worth bothering with, especially if you didn’t realize any income—but it is! There is a certain period (usually three to five years) allowed for a beginning business to start showing taxable profits. You may think of your writing as a hobby or avocation, but if you are trying to market your product, then you are in business. Claim your expenses and lower your income tax!
So even if you did not make a profit, you can still fill out a Schedule C, claiming your expenses for the year. Save your rejection letters. They are excellent, documentary proof of your intent and efforts to earn money as a writer.
More tips will be given in next week’s blog.