Wednesday, April 15, 2015

Writer Wednesday: Writers and Taxes

Happy Tax Day! 

I could hear most of you groaning. Taxes aren't exactly fun for a writer. We don't get the same taxes taken out of our pay, which means we get killed at tax time. I've seen some horror stories from well-known and successful writers who owe thousands at tax time. I don't envy them, but at the same time I do.

Confused? Really the less you make and the more you can write off as losses, the better as far as tax season goes. Of course that means you didn't have the best year. On the other hand, if you sold a ton of books and made great money, you're going to have to give some of that back come April 15. I pay quarterly, and I usually wind up overpaying, which means I get some money back at the end of the year, but it's nothing to celebrate.

So what's a writer to do? As always, write. At least that's my opinion. What do you think about the way writers are taxed. Is there a better system?

20 comments:

  1. In the UK, there is a minimum amount (£10,000) you're allowed to earn a year before you're taxed (is it the same in the USA?) and I've never earned above that amount in any year so far so my yearly tax returns don't incur a charge.

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  2. It's that time of the year. Canadians have until the end of this month to get their taxes done. I've taken care of it in March so it's not a headache waiting until the last minute.

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    1. I take care of mine early too because I like to be ahead of the game.

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  3. Filed my extension last night. :P

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    1. I've never done that, but I know quite a few people who do that. Good luck!

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  4. Best part of writers and taxes? Claiming books as a business expense. Research, you know...

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    1. Yes! Says the girl who spent way too much at the book fair. ;)

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  5. Our taxes feels deliberately painful. I am paying quarterly right now, but may still end up with a penalty at the end of the year. Even if you make adjustments quarterly for any increase or decrease in revenue, you can still get penalized if one of your quarterly payment was less than 1/4 of what you should have paid overall for the year.

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    1. I pay local taxes quarterly but they are paid at the end of the quarter so there's no guessing involved, which is nice.

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  6. I like the idea of paying quarterly. Right now I am just starting out- and my book isn't on sale yet, so I payed taxes on my advance, but not on book sales.
    ~Jess

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    1. That will be a different story this year. :)

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  7. I don't worry too much about my writing expenses and taxes since I have a day job that's my primary mean of living. I would love to sell more books, even though it means more money owed.

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    1. I'd prefer to sell more too. It all works out in the end, and after hearing people's stories I know I'd need to keep money aside for tax time.

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  8. I would take making a lot of money on my books and filing taxes any day!

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  9. One good thing about not selling a lot of books. I didn't make enough money last year so I don't have to worry about writing and taxes. I'd rather sell more books.

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    1. I've never owed money yet (because I don't make enough and I pay quarterly) but the more I make, the less my husband gets back, which kind of stinks. Last year was a bad year for me, so we got a nice return.

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  10. I just thought about another thing that is nice regarding paying taxes: it means you had, ahmM, INCOME!

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