Today, the ongoing Wednesday series on managing the legal side of your writing career takes a look at an important tax issues many authors struggle with: keeping track of deductions. First, a disclaimer: this post is not, and should not be construed as, legal or tax advice. Consult an accountant or licensed attorney for assistance with your personal tax issues, including (but not limited to) legally permitted tax deductions. Today’s post isn’t about what you can deduct – that varies based on your personal situation, writing income* and other factors. Instead, we’re looking at some ways to document potentially deductible expenses, to ensure
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Income Tax Basics for Authors
Today’s installment of “Managing the Business Side of Your Writing Career” takes a look at another business-related topic: income taxes. Most authors hope to become full-time writers, supported entirely by income from sales of their works. However, many authors continue to work a “day job” in addition to writing, at least during the early years of their careers. Once an author begins receiving income from his or her writing, however, the author needs to be aware of special tax issues this income creates. For those who already work as independent contractors, these issues should be familiar. However, authors whose previous work experience
Read moreAn Introduction to Sales Taxes for Authors
Many authors know about the obligation to pay personal taxes (if you don’t, you’ve been under a rock for far too long), but confusion often reigns when it comes to sales tax issues. Today, let’s take a look at when authors might (and might not) have to collect and pay sales tax on book sales. Sales Taxes (and Rules) Vary by State and Jurisdiction Unfortunately, there is no “one-size-fits-all” rule about sales taxes (except that you’ll have to pay penalties if you don’t collect and remit them when due). Each individual who sells products (including books) is responsible for knowing and obeying applicable tax laws.
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I’m currently on book tour for Claws of the Cat, but here’s a re-post from April 2012 to keep you thinking about your legal rights and publishing business during the “summer break”: Taxes, and Why Authors Care About Them (originally Posted April 25, 2012) Most people in the United States work as employees of someone else. This is true of writers also – many of us do something other than write full time. For those of us who qualify as self-employed, business owners, or independent contractors of one type or another, the purpose of this post is probably already clear.
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