Tax Deductions For Freelance Writers

Tax season is here, and since I am a freelance writer I have been looking for things on taxes that concern freelance writers. Here is an article by Amy Derby of Write-From-Home on the tax deductions available to a freelance writer.

Article reprinted with permission of the author.
By Amy Derby

As a freelance writer, you are allowed various tax deductions. Since these tax deductions will help offset the money you will have to pay in self-employment taxes, it will probably be worth your while to keep track of your expenses and take advantage of these deduction allowances. The following tips will help you learn what qualifies as a legitimate business expense and what else you can deduct.

1) Supplies and Postage

You're relatively safe in deducting the cost of supplies and postage, within reason. The IRS isn't likely to question the cost of basic office supplies. They know a writer has to buy pens, paper, and envelopes, as well as mail submissions.

2) Research Materials

If you use research software (like Lexis) regularly for your writing work, you can probably get these deductions by without question from the IRS. Magazine subscriptions are probably safe, too. Unless you subscribe to thousands of dollars worth of magazines, you should be safe deducting the costs of the few writing trade magazines you subscribe to. Book purchases (like Writers Market) or your online subscription to Writers Market can also be deducted.

3) Phone Calls and Mileage

If you do interviews that involve lengthy long-distance calls, or you have to travel for in-person interviews, you are relatively safe deducting these costs. If you dedicate a phone exclusively for business use, this deduction process should be easy, and the documented proof will be clear should you get audited. Mileage for trips to the library for writing work and such can also be deducted.

4) Computers

If you have a computer dedicated exclusively to business use, you can deduct the full cost. The IRS allows a percentage deduction on computers used for both personal and business use. Cost of printers, scanners, copiers and the like can also be deducted under the same terms. Same with software.

5) Home Use

If you have an entire room set up as a home office, you can deduct a percentage of your mortgage or rent, as well as portions of your utilities and real estate taxes. This is an iffy area for people who don't have an entire home office set up. Be prepared to justify your deductions should you be audited.

6) Writer's Association Dues

If you belong to a writer's guild or association, you can deduct your monthly or annual dues.

7) Personal Health Insurance Costs

You can deduct the full cost of your insurance premiums. You cannot deduct your family's insurance costs unless your spouse or children legally work for you.

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Amy Derby is a freelance writer and self-publishing author. She is the owner of http://www.write-from-home.com, a free website dedicated to helping new freelance writers learn how to make money writing from home online.

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