TAX TIPS FOR WRITERS
Every writer dreads tax time, but there's really no reason for all that anxiety. By planning ahead and keeping good records throughout the year, you can sail through your taxes in no time and get back to what you like doing most--writing.
Keep a daily record of work.
Keep an income/expense ledger.
Set up a business checking account and pay all bills by check as well as purchases.
Keep receipts for five years at least.
Any money earned with a W-2 or W-4 form must be declared on the regular 1040 form.
Keep your receipts filed under tax headings that match the ones on your Schedule C for simple retrieval at tax time.
And don't try to fool the IRS.
COMMON BUSINESS DEDUCTIONS:
Capital Expenditures - equipment such as computers, cameras, etc.
Computer supplies - hardware and software
In-service training - workshops, conferences
Duplicating and printing
Office-in-the-home - a percentage of all utilities, etc. as per IRS form
Books, magazines, etc.
Professional services - lawyer's and account's fees, etc.
Long-distance phone calls - local calls, too, if they apply
Internet service charges
Business use of your car - take only a percentage.
Advertising - any promotional costs
Travel and Entertainment
Parking and Tolls
Professional Organization Dues
Repairs - directly related to your office
Miscellaneous expenses - any expense that doesn't fit into the above categories
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