A Freelance Writer's List of Tax Write-Offs
72Retired in Suburbia Means Sometimes Paying Taxes
After Doing My Taxes, this is My List of Tax Write-Offs
Many writers dream of making money, but I see it differently. I am retired and have a pension, and I don’t want to pay taxes if I don’t have to. According to Kiplinger magazine, I live in one of the worst states for retirees. California is rated #5 on Kiplinger’s “10 Unfriendly States for Retirees in 2011.”
As a California native who has lived in the Golden State all of my life, I admit that I am already taxed to death. But this week, while filing my income taxes, I realized that I would have to pay some taxes and social security on last year’s writing. This was all new to me because I started seriously writing in 2010, and this was a time when I bought a laptop, took classes, joined writers’ groups, and bought books to stock my home library. And, I made approximately $500.
In terms of write-offs, I didn’t have much this year. My accountant seemed disappointed that I didn’t have more write-offs, but I learned from this meeting, and I vowed to take better records for 2012. This is the information I gave him from the records I had collected over 2011:
I paid annual dues to the writers’ organizations and kept my receipts. But not even halfway through 2011, I quit going to meetings and didn't renew my dues. So there went write off since I doubt if I'm going to go back and join.
Events sponsored by the writers’ organizations. The local writers’ organization is known to have monthly breakfast meetings, and they charged fees for the guest speakers and seminars. They also invited other guest speakers, including published writers, agents and publishers.
Seminars, classes and writing conferences. Any events or seminars related to writing. Writing conferences are known for their networking value, and they are not cheap. Writers can meet established writers, agents, and publishers.
Books, magazines, newsletters, tapes, and subscriptions. Anything to help the writer learn more about the craft of writing.
Donations. Writers will donate their own published books or books from their libraries to writing groups, schools and prisons. Keep track of what you donate.
Laptops, computers, printers, and cameras. These are the more expensive items that keep a writer in business.
Office and furniture. A portion of your home office may be tax deductible.
Pens, paper, writer’s journal, envelopes, etc. These seem minor, but supplies do add up.
Postage. Email is free, but keep track of what you send out when it comes to the cost of postage.
Phone and Internet. Most of my work was on the Internet, and we figured out that 30% of the Phone Internet bill for the year could be deducted.
Mileage. Wherever you go, keep track of your mileage if it involves writing. This includes trips to the stationery store for supplies. Keep a small notebook and a pen in your vehicle and make it a habit to log that year of mileage. You will be surprised that all that traveling in the name of your writing does add up.
These are only the write-offs that I had listed with my accountant. I am not a full-time writer, but last year, I learned a little about what it takes to keep better records. Recently, I completed my first freelance writing job for 2012, and I am already working on putting the proper receipts aside for tax time next year.
A Helpful Guide to a Writer's Tax Write-Offs
How did you do as a freelance writer in 2011?
How much in taxes did you have to pay as a freelance writer in 2011?
See results without votingvote upvote downshareprintflag
- Useful (6)
- Funny
- Awesome (2)
- Beautiful
- Interesting (4)
A Freelance Writer's List of Tax Write-OffsLoading...
Thank you, CJ. It is obvious that you know your way around tax write-offs. I have only met agents over greasy buffet dinners and had to share them with 20 other writers who were pushing sample chapters at them. If I had my way, I'd meet an agent or an editor over a breakfast of chicken fried steak with sausage biscuits and gravy. There! They would not be able to move, so I can pitch 'em. Yeah--in my dreams!
My tax advisor said this about meals: They are deductible if YOU are entertaining YOUR client; not if you are just hobnobbing with others...in other words, you are not the host. Otherwise, the only way meals are deductible is if you are spending overnight away from home for the business-related event.
Good checklist--and timely post! Voted up and useful.
MsLizzy: Since I don't have a manuscript to pitch, I have a long, long way to go before I'm going to entertain an out-of-town agent or an editor. During that very brief luncheon with the agents and writers (a tax-deductible event sponsored by the local writer's club), the agent gave me her card and told me to finish my manuscript. Which she probably told each of the 20 writers in the room. She returned to San Francisco without taking any of the sample chapters offered to her. But she did admit she had not hired a client in about two years.
A lot of people have a dream, fewer work on it, and still fewer finish that dream - they are looking for people who finish the dream.
As for meals, if that is what your tax advisor says for you to do - you pay them not me :). It is generally if it is business related and something like "ordinary and necessary" - which falls under a lot of things. But meals are looked at pretty hard by the IRS - do what you are comfortable with.
And I don't have to write things off for writing, but for a couple other businesses I do. I would like to get more writing in and make more money, but I have approached it as fun currently and haven't made a true commitment yet.
Hi, CJ. What I wrote off for 2011 was fine with me. On my list, I didn't include meals with agents and editors because I didn't have any. I am retired and have my pension. Unlike writers who depend on online assignments to survive, I write because I want to write. I get emails from new Hubbers who want to make the big bucks right away, but I just laugh. Those are the ones who don't last too long on HubPages. I started my novel last month, I make pennies writing for HubPages, I have a blog that I have ignored since last October, and I am tempted to pitch some magazine articles this year as one of my goals. Since I'm not after money, retirement can make one lazy. I can always switch it up and work on my roses, my spinning or my weaving. Or do nothing. As long as I'm required to pay taxes on my writing assignments, I'll do it. It's been a learning experience for me so far, but I do have an accountant who is patient with me.
Good HUB and timely. As an old enrolled agent, I will stretch tax deductions. Any trip I take is a business trip because I will write several articles that I'll get published. If you look closely, you might even find where I have entertained several critics (also known as golf partners) and my publicist (daughter-in-law) who promotes my work on her popular web site. No one should be afraid to push the envelope as long as they don't cheat.
I am sorry - I am not trying to hi-jack your comments. It sounds like you enjoy yourself, and that is what you should be doing. I am not trying to say people need to write more off, I was trying to express that writing is a business and the write-offs are business expenses in a very long winded manner.
You did a great job on the article. I thought it was a wonderful idea. And I hope I did not offend anyone or seem pushy. Up / Useful / Interesting
A necessary list for tax time. Don't forget software. Voting this Up and Useful.
Awesome Arlene, Works for me.
Looks like I can purchase a camera, upgrade my internet and printer/scanner. I won't need to do much as far as 2011, but I hope this will apply for next year's earning. Wishing big, fingers crossed.
Very helpful, Arlene. Unfortunately, I have way more writing expenses than earnings in 2011. At least I can take some deductions. : ) Thanks for sharing this.
Work it, Gail! Thank you so much for the suggestions. I am good with keep tax records, but this year, I must admit that I wasn't very "creative" with my write-offs.
No problema, CJ. I didn't see anything wrong with your comments. Not at all. No need for the apology! I wish I did have more to write off, but my receipts were very limited for 2011. In 2010, that's when I went on a buying spree with books and equipment. Could have used those write-offs for 2011! But, I'm learning, and need all the help I can get.
Ah, yes! Software! And anything else related to making that computer or laptop add to the writing experience. I think you have the type of software that allows you to pump out 3-4 articles per day, alocsin, and you are keeping it a secret . . .
jenubouka, I would love to have one of those sleek, new laptops and a Nikon with "real" interchangeable lenses. But with my luck, I would buy more equipment and have no writing to show for it. Ugh! No crystal ball for me when it comes to writing projects for 2012. But it would help!
Deborah, I had been saving receipts all along, but when I got my folder out and looked at my expenses, I knew I was going to have to pay up. This was so sad, but I already have everything I needed to write from 2010. Most of my expenses in 2011 were for reams of paper and about 6 boxes of toner. Writing conferences cost at least $500 a pop, and after meeting with groups of writers, I wasn't interested in going. I don't think I would last several hours or a weekend with these people. Some writers swear by them and attend several conferences a year, but it's a social event as well as write-off for them. Even if I had some money to blow, I'd doubt if I would attend.
I went to one writer's conference a couple of years ago. It was more like a workshop, though, and not a pitch to agents type of deal. I did get a chance to meet with an editor to get a critique of the first 50 pages of my novel, and that was a useful experience. And I made some other writer friends with whom I've remained in touch, so that also was useful. I'd like to get to another one some day, but only after my novel is in better shape.
Which is why I haven't gone to a writer's conference! I don't have a completed novel to pitch. You were lucky to have an editor sit down with you, Deborah. I'm sure you came away with plenty of ideas after that. Don't they have a world-famous writer's workshop/conference in Iowa?
Yes, the Iowa Writers Workshop, which is part of the MFA program at the University of Iowa. They have a conference in the summer. I've never gone.
So many writer's conferences to choose from if you have the time and money. Then there's the ones on cruise ships and tropical islands. I doubt if I would get anything done! Too many distractions.
I am bookmarking this for when I get to a point when I need to worry about paying taxes. I did not make enough last year that I need to pay taxes. :( But it is helpful to be reminded of what type of items can be written off. Quite often, writers forget about things that aren't office supplies.
Arlene, if that "agent" had not hired anyone as a client in 2 years, it would be my guess that she's not really an agent worth her salt, and is just "gaming" the tax system.
My husband and I have run small businesses, ranging from manufacturing to handyman...and we've entertained clients..they don't have to be from "out of town;" ours were all within city limits. The criterion is that you are entertaining them for the purpose of soliciting business. ;-) (According to our tax gal.)
I am usually good about keeping records, Flora. Last year, I just wasn't paying attention, and I surely was not in the mood to look over what I had collected in terms of receipts. I put everything together the night before meeting with my accountant. I think my Christmas schedule of putting things off followed me into the tax season. Bad Girl! Bad Girl!
Well, MsLizzy, two years ago, I was new to the whole process of the agents lecturing the writers' organization and scouting around for new writers. After their lecture, they spent lunch and the rest of the afternoon looking at chapters that the members prepared. I'd say, a total of three minutes each, plus any time you could get if you approached either of them during lunch or break. I threw together a chapter at the last minute because the membership guy told me to do it as a way to get some experience in pitching. I was disappointed in these agents because they did not seem interested in anyone's chapter. They each had stacks of business cards to give out. But I do remember them pushing their books and seminars. You'd think they would be interested in at least one writer, but I do believe you are right. There is no doubt that they were sought-after agents in fiction and non-fiction when they lived and worked in New York City. But it looked to me, even back then, they were skating on past clients and whatever they made from them. Which is why they can well afford the fancy San Francisco historical Victorian that they use for an office. Their money is now made through seminars and conferences that they hold at San Francisco State University, which are held over the weekends and cost a minimum of $500 for an afternoon or an evening session. They even hired a couple of agents to help them out, but they aren't taking new writers, either.
This is great information. Sometimes we forget that writing is a business, and we are entitled to business deductions. Thanks!
Thank you, Deborah-Diane. I learned about write-offs this year when it comes to the writing. You are sooooooo right! Writing is a business, and as writers, we should keep those tax records current and accurate. This coming year, I will certainly make the effort.
Very useful hub as I am always forgetting to keep receipts for things like meals and books and travel. I'll write a post it note and stick it to my forehead.
billybuc, I guess it's all in the roll of the dice. With the freelance writing, you'll have the write-offs one year, but not enough work. Or not enough work, but the all write-offs you could possibly want. So what's up with that? I guess you have to be prepared, but I do like your idea of sticking a Post-It to my forehead. And probably the bathroom mirror!
CJ Andrews Level 3 Commenter 3 months ago
Always a good thing for people to realize. Writing is a business so don't forget lodging while on a weekend seminar etc too. And meals if you are talking to an editor, writing consultant, etc.
I am shocked that I haven't seen more of this type of article - great job.