How Do You Deduct Expenses Writing Income?
Self employment taxes from writing can send your tax bill through the roof. Do you have a HUGE tax bill every year? IF so there are ways to lower that tax – are you: Self employed? A Writer? Passive? Active? Hobby? Using Turbotax or a tax preparer that is experienced can save on your tax bill. IRS says that ALL self employment income is to be reported and taxed. Now more than ever you need to deduct all LEGITIMATE expenses. If you generate more than $400.00 NET income you will want to revisit your deductions with a tax professional so that you can understand all the fuzzy areas and minimize your tax liability. TAX SOFTWARE: Normally you will fill out schedule C as sole proprietor or LLC. Make sure if you own more than one type of business you fill out a separate schedule for each business. As a writer you will fill out schedule C using the business code 711510 for writing income. You may qualify to use the EZ version. See resource box for link to the forms. SELF EMPLOYMENT INCOME: All
