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• Keep these docs for your writing business records
Self-published authors need to keep a variety of documents, especially if making any claims or deductions on federal income taxes. While you may not have to submit these documents when filing, you’ll need them if audited.
• Tax forms self-published authors must file
As a published author, you’ll have to pay taxes on your earnings from book sales. If a self-published author in the United States, you are a self-proprietor, and that means you’ll need to fill out some additional forms with the IRS.
• Self-published authors may need EIN
Authors who self-publish generally don’t need an Employer Identification Number (EIN). Should you ghostwrite books or freelance, however, you probably will need one.
• Writers can deduct home office space on taxes
Most indie writers work out of their home rather than rent or own office space. Fortunately, expenses related to running a self-publishing/writing business out of your home can be deducted on Federal income taxes.
• Indie writers also can use depreciation on taxes
When you start or operate a business, you almost certainly will have to acquire equipment and other property. Even for indie authors who have very few business items – such as a desk and a computer – some of this can be deducted from your Federal taxes.
• Indie authors can deduct vehicle expenses
Indie authors can deduct the expense of operating and maintaining their car or truck on federal taxes should they use a vehicle to research their books.
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My name is Rob Bignell. I’m an affordable, professional editor who runs Inventing Reality Editing Service, which meets the manuscript needs of writers both new and published. I also offer a variety of self-publishing services. During the past 15 years, I’ve helped more than 400 novelists and nonfiction authors obtain their publishing dreams at reasonable prices. I’m also the author of the Storytelling 101 writing guidebooks, four nonfiction hiking guidebook series, and the literary novel Windmill. Several of my short stories in the literary and science fiction genres also have been published.
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