Tax Tips For Freelance Writers

It's Tuesday and that means we have a guest author on Marketing Tips For Authors. Recently, I have been asked tax questions related to work as an author. If ever a disclaimer was appropriate, it's this one: I am no tax expert, or even a tax aficionado. I have, however, found someone who does know a thing or two about taxes. Chuggin McCoffee is here to share tax tips with authors. With April 15th right around the corner, it couldn't be more timely.

Before we get to the post, I have a couple of quick announcements:

1. I want to encourage you to sign up for free webcasts on writing, publishing and marketing your books. This free event is going on all this week with 18 book marketing and publishing experts who will be on various panels to answer all of your questions. I will be on today's webcast (2pm Central) entitled, "PRE-PUBLICATION MARKETING MUSTS" with Dana Lynn Smith, The Savvy Book Marketer and Shelley Lieber, The Wordy Woman: Publishing Maven. Visit the Grand Opening Webinar Week page to read more about the topics and to sign up for your free Webcasts now.

2. My new video e-book, Conducting Effective Twitter Contests launches March 1st. This is a great marketing resource that can make a huge impact as you look for ways to dig deeper into your niche. When you visit the page, take a look at the sample videos taken right from the video e-book I have made available for you to watch.

Now, on to our guest post today...

It is a wonderful thing to be self-employed as a freelance writer, until tax time rolls around... If it is your first year as a freelance writer filing taxes, you may feel quite overwhelmed. However, once you have a greater understanding of the best route for filing taxes as a freelance writer, it will make life much easier, and you will see the benefits of your chosen profession.

• First of all, consider all of the deductions that you can make as a freelance writer. This includes any materials that you may have purchased for your research, your office furniture, your phone line, advertising, any fees that you paid to freelance writing websites that you are a member of, your computer, printer, Internet costs, and even gas mileage to meet with potential clients. And that is only the tip of the iceberg! You can really get down to the nitty-gritty and start to deduct paper, printer ink, pens, cameras used for any type of pictures for your work, writers training, babysitting fees, and anything else you can think of.
  
  
• The best method to use is to pay your freelance taxes on a quarterly basis. Since you are receiving all of your income in a lump sum, you can set it up with the IRS using the 1040-ES to pay your taxes quarterly so that it is less of a hit once April of next year rolls around.
  
  
• Use a tax preparation software. If all of these deductions have your head spinning, then an easy way to take care of all of your information is using tax software, which is recommended. You can purchase TurboTax as an investment, rather than going to an accountant, and on top of that, the software that you purchase will be tax-deductible!
  
  
• Look for any extra deductions for an added benefit to your taxes. In fact, it is important to be as creative as possible since you can deduct a portion of your rent for your home office, which will be based on the complete square footage of your home. You can also deduct your own health insurance, and any travel that you have done related to business purposes.
  
  
• Don't forget the self-employment tax. This is something that accounts for 15.3% of your income, which can again be paid on a quarterly basis. This also depends upon your tax bracket, so it may cost you more overall. Taking this tax into account will allow you to clearly plan your finances out for the entire year, especially so that you have the opportunity to stay ahead instead of owing to the IRS.
  

The bottom line is that it really does pay to be self-employed, especially since it can save you money in taxes overall. You also have more control of your taxes in the deductions you can create, so being aware of your deductions will work as an advantage to you come April 15. These tips will help you to stay on your toes and avoid unneeded stress as a freelancer during tax time!

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Chuggin McCoffee is a coffee fanatic that has spent the entirety of his career cultivating and studying all of the best uses and brewing styles for optimal coffee and espresso flavor. His specialty site for all coffee needs, supplies, and Bunn Filters can be found at The Coffee Bump.