Financial Opportunities for Writers

Writers consider themselves as creative professionals rather than business professionals.  As a result, many writers who are paid for work or in the process of writing a novel overlook possible business tax deductions that they qualify for. Many writers do not realize that they can claim business deductions as long as they have been paid at least once for anything they have written during one fiscal year.  Even writers who write as a hobby can take deductions if they run their hobby as a business. 

According to the U.S. Internal Revenue Service, tax statutes allow a writing business to sustain yearly revenue losses for a period of seven years.  That means you do not have to make a profit for seven years and you can still take the tax write offs.  The key is to maintain good business records of your deductions.

To become a business is very simple for a writer.  All they need is a social security number, a business registration within their state as a sole proprietorship and IRS Publication 587 for home business tax deductions.  The cost to get started is minimal but the benefits are immense.  As a writer, business supplies including computers, printers, and even your Internet connection are tax deductible if you use it for business. 

As a sole proprietorship, writers can deduct their cell phones and other communication devices if they are used for the business, college courses to improve writing skills are tax deductible if they are used to enhance the business, the cost of reference books, even a part of your mortgage can be tax deductible depending on how your office is set up. Complete information on home business tax deductions can be found in IRS Publication 587. 

Novelists, travel writers, and journalist can deduct travel expenses.  Restaurant and food critics can deduct their dining.  A person writing a cookbook can deduct the food used to create recipes. Technology writers can deduct the technologies they purchase for review, and novelist can deduct their research expenses used in writing a book. 

The one thing a writer must do to qualify for these tax deductions is to become a business and sell one article for money.  It may sound difficult but thanks to excellent writing opportunities on the Internet such as Triond and Associated Content it is possible to break into the writing business without much experience.  Write a business plan for your writing business and you may qualify for a small business loan to buy new equipment. Government agencies such as the U.S. Small Business Administration help people write business plans and get finacial backing. The tax and financial options are endless for writers seeking to start a part-time career in writing.