• Skip to main content
  • Skip to after header navigation
  • Skip to site footer

The Steve Laube Agency

Helping to Change the World…Word by Word

The Steve Laube Agency

The Steve Laube Agency

Helping to Change the World Word by Word

  • Home
  • About
    • Who We Are
    • Frequently Asked Questions
    • Interview with Steve Laube
    • Statement of Faith
    • Terms and Conditions
    • Privacy Policy
  • Guidelines
  • Authors
    • Who We Represent
    • Awards and Recognition
  • Resources
    • Recommended Reading
    • Christian Writers Market Guide Online
    • Christian Writers Institute
    • Writers Conferences
    • Freelance Editorial Services
    • Copyright Resources
    • Research Tools
    • Selling What You Write
  • Blog
  • Contact
  • Twitter
  • FaceBook
  • RSS Feed
  • Get Published
  • Book Proposals
  • Book Business
  • Writing Craft
    • Conferences
    • Copyright
    • Craft
    • Creativity
    • Grammar
  • Fun Fridays
Home » Blog

Blog

Deadlines and Taxes

By Steve Laubeon April 15, 2024
Share
Tweet
2

Two certainties in the life of a writer. Deadlines and taxes.

You know what a deadline is. It has the word “dead” in it for a reason. In addition to the reality of taxes, the April 15 income tax filing deadline for those living in the United States is intrinsic to the reality. (And since today is April 15, I thought it appropriate to revisit some key bits of information.)

What about those taxes?

First, is the obligatory disclaimer. I am not a tax attorney or a tax accountant. I am merely discussing concepts and ideas that you may or may not use in your situation. And, as always, when it comes to your taxes, make sure you follow the rules of your country, province, or state. And, if appropriate, consult a professional.

Some of you may roll your eyes and say, “I already know this.” But remember, there was a time when you did not. I get many beginner questions each year from debut authors discovering the industry’s business side for the first time.

Keep Good Records

One advantage of the self-employed writer is the ability to deduct certain expenses related to the writing profession. Writers-conference fees, purchasing books on writing, website hosting fees, promotional items used to market your book, etc. These are possible deductions, but you must have a record of each expense.

And I mean keep everything: receipts, ticket stubs, bank statements, check registers, ATM receipts, mileage (when and where and how far). Nowadays, some people use the camera on their phone to record the receipt. The problem is later organizing the information in one place. If you have good recommendations, post them in the comments below. (The Tax Act provides an article with ideas here.)

Now is the time to start trying to collect your 2024 expense receipts if you haven’t already begun. Trying to find that receipt next year might be a challenge. An empty shoe box may seem convenient at the time, but it creates a lot of work later.

Hobby-Loss Rules

If you are writing as a hobby or for something that only occasionally earns money, then you can only deduct expenses equal to the amount of your revenue. In other words, you can’t buy a submarine and claim it was for research for that underwater thriller you’ve been trying to write for years.

But if you intend to derive a living from your writing, you can show a loss (and maybe deduct that submarine!?). Proving intent is something judged case by case. If you show a loss in your writing business for five consecutive years, expect a red flag to appear in the IRS inbox. It is commonly understood that the IRS will accept that you are running a business if your writing work shows a profit in at least three of the last five tax years. But in an audit, the IRS can go back many years and determine if your deductions were valid. If disapproved, you will end up with a new, very expensive tax liability and additional penalties. Read these excellent articles if your business is in danger of being classified as a hobby:
“When the IRS Classifies Your Business as a Hobby”
“What Every Self-Published Author Needs to Know About Taxes” (an excellent article every writer should read)
“Hobby Loss: What it is, How it Works, Avoiding it”

Separate Your Home from Your Business

As much as possible, keep your household income and expenses separate from your income and expenses for writing. This can be as simple as keeping a separate bank account. (This is one way to prove intent; see above.) Then, keep records separately for the business using Quicken, Mint.com, or a spreadsheet.

If you work out of your home, consider exploring the home office deduction. But be careful. If you write occasionally from your home computer and that computer is used by other family members for things other than your writing business, you will likely not qualify. If that room in the basement is your office but is also a playroom for kids or grandkids, it may not qualify. Home-office deduction rules can change from year to year. What worked for you last year may not this year. IRS Publication 587 (this 34-page document linked here) spells out the 2023 rules for those of you in the United States.  Also, the IRS Form 8829 “Expenses for Business Use of Your Home” can be found at this link.

Resources

A good book is New Tax Guide for Writers, Artists, Performers and Other Creative People (Fifth Edition: 2016) by Peter Jason Riley. This is one of the few designed specifically for those in the arts.

Another good one is Legal Roadmap for Your Creative Business: A Strategy to Protect Your Assets Without Legal Confusion (2022) by Kiffanie Stahle. A little more up-to-date than the above. And covers all sorts of creative professions.

Another is the “Tax and Business Guide for Authors” course at The Christian Writers Institute. Currently it’s priced at $99 for the multi-session course by a tax professional. Be sure to join the Institute (it’s free) and see if there is a price reduction or a sale, or an updated version of the course. However, $99 is a good investment if it saves you as much or more in the coming year.

For many of you, numbers are either a toxic topic or the equivalent of hieroglyphics. But take this issue seriously. The writing profession is ultimately a business. Granted a business based in the creative arts, but it is still a business. Talk to a qualified tax accountant if you have questions. Never rely on the hearsay of another writer who gives anecdotal information at a writers conference. The IRS won’t accept the excuse that “Shirley told me it was okay to write off my Australian cruise because I was researching an article about Sydney!”

[This is a revised and updated version of a previously published post.]

Leave a Comment
Category: Book Business, Legal Issues, Writing CraftTag: Book Business, Contracts, taxes, Writing Craft

Fun Fridays – April 12, 2024

By Steve Laubeon April 12, 2024
Share
Tweet
7

There is no sound in today’s video. You simply have to watch carefully. It is only a minute long. Afterward, you will doubt your powers of observation. [If the video does not appear in your email newsletter, please visit the site itself to view it.]  

Read moreFun Fridays – April 12, 2024
Category: Fun Fridays

Navigating Writing Through Seasons of Transition

By Megan Brownon April 11, 2024
Share
Tweet
13

After two decades of service in the US Air Force, my husband hung up his uniform, marking the beginning of a new chapter for our family. With all of us finally under the same roof and a more manageable schedule, we’re filled with anticipation for the future. Yet, amidst the excitement, the uncertainty of what’s next and the complexities of merging our parallel lives into one shared …

Read moreNavigating Writing Through Seasons of Transition
Category: Career, Personal

New Earth Books

By Dan Balowon April 10, 2024
Share
Tweet
24

Several years ago, I engaged in a wide-ranging spiritual discussion in a group when I said in jest, “Once we get to heaven, we won’t need to sing that hymn anymore!” Sometimes, we say things in the moment and then realize they are likely true. (Not always, trust me.) But let’s face it, we won’t be singing the “Battle Hymn of the Republic,” “God Bless America,” or …

Read moreNew Earth Books
Category: Inspiration, Theology

Writing Conflict: How to Keep Your Protagonist on Their Toes With Angela Hunt

By Thomas Umstattd, Jr.on April 9, 2024
Share
Tweet
3

Without conflict, you don't have a story. Find out how to add and layer the six classic conflicts to keep your readers reading.

Read moreWriting Conflict: How to Keep Your Protagonist on Their Toes With Angela Hunt
Category: Christian Publishing Show, Craft, The Writing LifeTag: Angela Hunt, Writing Craft

Your Writers Conference Appointment

By Steve Laubeon April 8, 2024
Share
Tweet
10

[I’ve posted variations of this article over the years. I hope that by bringing it back to the top of the pile, many of you new readers will see it!] __________ You snagged one of those valuable 15-minute appointments with an agent or an editor at a writers conference. Now what? What do you say? How do you say it? What do I bring with me? And what does that scowling person on the other side …

Read moreYour Writers Conference Appointment
Category: Book Business, Book Proposals, Conferences, Pitch, Pitching, Writing CraftTag: Book Business, Conferences, Get Published, Pitching, Proposals, Rejection

Fun Fridays – April 5, 2024

By Steve Laubeon April 5, 2024
Share
Tweet
29

Someone captured a video of me teaching a group of writers about contract law. We discussed topics like indemnification, moral turpitude, the statutory right of termination, and more. Unfortunately, the only thing the writers actually heard is what you hear in the video. The navy blue outfit I wore that day seemed appropriate at the time. Sorry. Enjoy! [If you cannot see the video in your email, …

Read moreFun Fridays – April 5, 2024
Category: Fun Fridays

A Case for Reading Physical Books

By Bob Hostetleron April 4, 2024
Share
Tweet
18

Ebooks are great. I read, on average, 25 or more ebooks every year. They’re convenient, especially when traveling. They don’t take up precious shelf space. They don’t have to be dusted. I don’t feel guilty when I read an ebook, but I purposefully choose physical books for the majority of my reading, for numerous reasons. Reading a physical book provides a more sensory experience. Touch, smell, …

Read moreA Case for Reading Physical Books
Category: Encouragement, Inspiration, Personal

A Guaranteed Rejection

By Tamela Hancock Murrayon April 3, 2024
Share
Tweet
14

Very, very few authors are guaranteed a publisher’s acceptance of their work. Those authors have spent years, even decades, proving they can write bestselling, or at least profitable, books with almost no misses. And if they have a string of misses, their publishers may drop them. They must. No matter how much a publisher likes an author, books must make money; or the publisher will be forced to …

Read moreA Guaranteed Rejection
Category: Book Business, Book Proposals, Pitching

April Tool’s Day

By Steve Laubeon April 1, 2024
Share
Tweet
20

I decided not to try and trick you on April Fool’s Day with something like “Steve Laube buys yet another shiny industry business. This time he bought the entire out-of-print catalogs from Nomas Telson, Zyndale, and Tondervan. Included in the purchase was the New International Christian Standard Living Message Bible (NICSLMB).” Instead, I thought about which reference book I use …

Read moreApril Tool’s Day
Category: Book Review, Craft, Creativity, Personal, Reading, Steve, Writing CraftTag: Book Review, Craft, Creativity
  • Previous
  • Page 1
  • Interim pages omitted …
  • Page 24
  • Page 25
  • Page 26
  • Page 27
  • Page 28
  • Interim pages omitted …
  • Page 330
  • Next

Sidebar

Get Blog Updates

Enter your email address to get new blog updates delivered via email. You can unsubscribe at any time.

You have Successfully Subscribed!

Grow as a Writer


Find Out More →

Popular Posts

Top Posts on Book Proposals
  • Hints for a Great Cover Letter
  • The Keys to a Great Book Proposal
  • What Steve Laube is Looking For
  • Book Proposals I’d Love to See – Tamela Hancock Murray
  • What I’m Looking for – Bob Hostetler
  • What I’m Looking for – Dan Balow
  • What I’m Looking for – Lynette Eason
  • What’s the Best Way to Submit My Self-Published Book?
  • What Is the Agent Doing While I Wait?
  • God Gave Me This Blog Post
Top Posts on The Business Side
  • When Your Book Becomes Personal
  • The Myth of the Unearned Advance
  • How Long Does it Take to Get Published?
  • What Are Average Book Sales?
  • Can You Plagiarize Yourself?
  • Never Burn a Bridge
  • Who Decides to Publish Your Book?
  • That Conference Appointment
  • Goodbye to Traditional Publishing?
  • Who Owns Whom in Publishing?
  • Ten Commandments for Working with Your Agent
  • Writers Beware! Protect Yourself
Top Series
  • Book Proposal Basics
  • Publishing A-Z
  • A Defense of Traditional Publishing
Top Posts on Rejection
  • The Slush Pile: Enter at Your Own Risk
  • Even the Best Get Rejected
  • Five Reasons Why You May Never Get Published
  • The Unhelpful Rejection Letter
  • Writers Learn to Wait

Blog Post Archives by Month

  • Home
  • About
    • Who We Are
    • Frequently Asked Questions
    • Interview with Steve Laube
    • Statement of Faith
    • Terms and Conditions
    • Privacy Policy
  • Guidelines
  • Authors
    • Who We Represent
    • Awards and Recognition
  • Resources
    • Recommended Reading
    • Christian Writers Market Guide Online
    • Christian Writers Institute
    • Writers Conferences
    • Freelance Editorial Services
    • Copyright Resources
    • Research Tools
    • Selling What You Write
  • Blog
  • Contact

Copyright © 2025 · The Steve Laube Agency · All Rights Reserved · Website by Stormhill Media