writers tax tips
If you’re a writer who can’t pay your income taxes, you’re not alone! These ways to deal with unaffordable taxes may help freelance writers, published authors, and even bloggers who are struggling with financial debt.
According to the Internal Revenue Service, U.S. residents filed more than 131 million federal income tax returns in 2008. Last year, 9.7 million accounts were delinquent, which is 7% of all taxpayers’ accounts. These taxpayers owed more than $103 billion in taxes, penalties and interest. The number of levies (a key enforcement tool in which the IRS takes possession of assets to collect on unpaid taxes) rose to nearly 3.5 million in 2009.
“Depending on how much they owe, taxpayers have several different options,”
says Jeff Staley, managing partner of Freedom Tax Relief LLC. “It’s extremely important to respond to the Internal Revenue Service and take action to resolve tax debt.”
To make the most of your freelance writing income and decrease the income tax you pay, read Taxpertise: The Complete Book of Dirty Little Secrets and Tax Deductions for Small Businesses the IRS Doesn’t Want You to Know. And, here are Staley’s tips for writers in taxpayer hell…Read More »6 Tips for Freelance Writers and Authors Who Can’t Pay Their Income Taxes
The downside of making money as a writer or blogger is paying income taxes; to ease your pain come April, here are eight ways for working writers and bloggers to get their taxes organized. This is important, fellow scribes, because the sooner you treat freelance writing like a business, the more money you’ll earn as a writer (and the more income tax you’ll pay — but hey, at least you’re making money writing or blogging!).
Before the tips, a quip:
“Writing is the only profession where no one considers you ridiculous if you earn no money.” ~ Jules Renard.
My goal as a working writer and blogger is to earn enough money to make paying income taxes a pain in the keister; earning no money is not an option! If you earned money writing last year, make sure you’re using tax software such as the TurboTax Deluxe Federal + State– it definitely makes calculating, filing, and paying income taxes easy (I remember the good old days, doing my taxes on paper!). But since doing taxes involves more than software, here are eight things for freelance writers and bloggers to think about as income tax season approaches…Read More »Taxes for Working Writers – Getting Organized for Income Tax Season
You don’t need to earn a full-time income from freelance writing or blogging to hire an accountant or bookkeeper! Investing in your writing career by hiring someone to do your taxes and keep your income and expenditures organized may be the best move you make this year. Here are a few ways to know if you should outsource your bookkeeping and accounting tasks or if you can remain successful on your own…
Before the tips, a quip:
“By working faithfully eight hours a day you may eventually get to be boss and work twelve hours a day.” ~ Robert Frost.
I’m the boss of my writing and blogging career, I work ten (sometimes twelve) hours a day, and my least favorite part is doing my bookkeeping and administrative tasks! Luckily, my husband who doesn’t mind doing my income taxes…but I suspect the time is coming to hire a bookkeeper or even an accountant. If you’re doing your own taxes this year, click TurboTax Home & Business (great tax software). And, read on for a few signs it’s time to hire a bookkeeper for your small business…Read More »Should Freelance Writers or Bloggers Hire Bookkeepers or Accountants?
These bookkeeping tips are for freelance writers and bloggers who make money writing. If you’re earning an income, you need to keep accurate records of your income and expenditures. These bookkeeping tips for small businesses are simple yet important, and they’ll save you time and frustration at tax time…
Before the tips, a quip:
“Writing is turning one’s worst moments into money.” ~ J. P. Donleavy.
Even if you only earn a couple hundred dollars a month from writing or blogging, you need to start putting these basic bookkeeping tips to work for you. Later, when you’re making thousands of dollars a month as a freelancer, you can think about hiring an accountant or bookkeeper to keep your finances organized. Think big, fellow scribes! Read Start Your Own Freelance Writing Business and More: Copywriter, Proofreader, Copyeditor, Journalist for more info about writing for a living.
And, here are several small business bookkeeping tips…
This example of a freelance writer’s invoice and payment spreadsheet is simple and easy. Working writers don’t need expensive software to track invoices and payment — this Excel spreadsheet has worked for me for years.
But, before the tips, a quip…
“Almost anyone can become an author; the business is to collect money and fame from this state of being.” – A.A. Milne.
If you’re dedicated and lucky enough to be earning money from your writing jobs, then you need to find an organized way to keep track of your invoices and payments. Running a successful freelancing business isn’t just about creativity, writing well, and breaking into new magazines – it’s about knowing how a small business operates. To learn more about the business of writing, read Secrets of a Freelance Writer: How to Make $100,000 a Year or More by Bob Bly — he’s one of the most successful freelance writers ever.
And, here is my spreadsheet for invoices and payments…