Taxes! Nobody likes them, and here in the states it is that season again. I made a major error in watching my tax status when I went back to work last February. The problem: I left work on disability in Feb 2011, and knowing my last paycheck wouldn’t suffice carrying me into a disability check, I chose to file exempt. One year later, upon returning to the work place, I forgot to change that exemption until late summer. Ouch!
Is there redemption? I sure as high heavens hope so. Here is what I have learned from my first year of publishing, or being an independent sales entity (as the tax man puts it):
- Any monies put toward producing a tangible good is a write-off (ie, publishing)
- Any monies put toward marketing and advertising is a write-off (ie, bookmarks, flyers, book trailer, websites…)
- Any monies put toward research for a tangible good is a write-off (ie, trip to Alien Hwy for info toward my scifi book, hotel, gas)
- Any monies toward a professional association is a write-off (ie, writer’s club, conferences)
- Any monies put toward necessities of the trade are write-offs (computer, printer, programs)
These write-offs may be my saving grace, as I have well over $10,000, the bulk being the cost to iUniverse and those pesky review houses I will never use again. Much more is to the physical print books I purchased and give away for review, gifts, and giveaway promotions. The rest is incidental.
My question to authors with experience is: am I missing anything? Granted, I am in the U.S. so this is sort of exclusive, but for those elsewhere, please give away any tax secrets you may know. In this day and age, we all need our pennies, loonies, or pounds before we lose an arm and a leg.
Tania L Ramos
Where to follow?