Being a romance writer is more than
hearts and flowers and the ability to write a believable
love scene. At some point in your writing career you
need to make the decision to treat your writing as a
business. For some, that will be right from the start.
For others, it might come after that first sale or
contract offer. Soon we will be coming into tax season,
so it’s a good time to begin thinking of this and
getting some things in order, if not for ’07 taxes,
certainly for ’08.
I knew from the beginning that I was
not up to doing myself justice trying to do my own taxes
that included my writing business, so I sought out a tax
professional in my town and she’s been doing my taxes
for me ever since. She stays current with tax changes in
my province and has been a tremendous help in getting me
organized each year.
Having a writing business means you
can write off a number of things on your taxes. For
example, based on the percentage of office space you
have in your home, you can write off a certain
percentage of your heat, hydro, rent or mortgage
interest, taxes and insurance. It’s important to keep
your year’s bills for each of these items so your tax
professional can calculate the percentage correctly.
If you use your telephone for your
writing, for example, doing background research for a
novel, or being interviewed for an internet romance
radio show, keep track of these business calls. They can
add up over a year. The same can be said for mileage for
your vehicle. If you use your car to do promotional
junkets, or other writing related journeys, keep a log
of the miles and a record of the trip. I submit the
mileage I drive each month to attend my monthly writer’s
circle breakfasts. Check with your tax person however.
There are rules regarding minimum distances traveled.
In this day and age a writer needs to
be an equal partner in the promoting of his/her work. So
now you can expect to spend a certain amount on
promoting and advertising, whether it be buying pens to
give out at events, or buying ad space in Romantic Times
magazine. Perhaps you get bookmarks and brochures
printed, or purchase business cards. These can all be
claimed on your taxes.
As well, if you are a member of a
writing group, promotional group, or a professional
writing organization, you can claim the fees for
belonging to these groups. For example, I belong to
EPIC, Canadian Romance Authors Network (CRAN), Books We
Love (for promotion), and The Writer’s Circle of Durham
Region. Some other examples might be RWA (Romance
Writers of America), or the Writers Union of Canada.
There are yearly fees which I submit with my tax info.
I subscribe to Writers Digest and
Storyteller Magazine. As professional journals, they can
be claimed on my income tax. I also include my
subscriptions to the couple of magazines and literary
journals in which my work sometimes appears. After all,
I have purchased these subscriptions as ‘research’ on
markets. This holds true also for books you may purchase
that are writing related or for research material for
your work in progress.
You can claim entry fees for contests
as well as fees for attending courses or taking
workshops. If you study writing at a college or through
correspondence, by all mean claim your tuition fees for
these courses.
And don’t forget to keep all of your
sales slips for supplies you use in you daily writing
life: paper, printer cartridges, envelopes, file
folders, etc. And, if you purchase large items in the
year, like a desk, a new computer, a file cabinet, keep
the receipts from these purchases. Office equipment
depreciates over time, and so a percentage of that
depreciation can be claimed over a few years.
On the flip side, keep track of your
writing income for your taxes. There will be royalties,
profit from direct sales, flat fees paid for things like
articles, short stories or freelance work. If you have
something like a Café Press storefront, keep track of
any sales made there as well.
The rules will vary depending on where
you reside, so it is a good idea to check with a
professional in the field to make sure you are getting
full advantage of your business as a romance writer. And
knowing you are taking care of business will allow you
to relax and be able to write those dynamic love scenes.
*Disclaimer: the above
is for general information only. For specific
legal advice, check with your tax professional
