It’s tax time again and whether you’re a full time writer or simply write part time as a hobby, treat your writing as a profession, recognizing that your creative work is, on a certain level, a business.
Travel, supplies, online expenses; including connection fees and monthly fees, research, meals, computer expenses and mileage are a few deductions available for writers. But research is something not everyone thinks about when figuring deductions.
The truth is, writers benefit from tax laws when doing research. The government allows us to write off research expenses even though we might not yet be receiving any income from our projects. According to the Internal Revenue Code, the qualifier on this is that “they reasonably expect they will receive income as a result of their research activities.”
Normally, a writer’s cash income lags their production by a large time gap and the ability to deduct expenses as they occur keeps us from having a negative cash flow while still owing taxes. Organization and diligent record-keeping are the keys to successful tax preparation, whether you do your taxes yourself or hire an accountant to do them.
Hope this helps!