The answer to this question might surprise you. Everything from your office space to your internet, office decor and travel expenses are classed as tax deductible. You can even write off the online accounting<\/a> software that you use to manage and automate your tax filing process.<\/p>\n This article will look at the most universally common tax deductions for authors that you can claim to ensure that your self-employed venture remains profitable.<\/p>\n So, what exactly can you write off? We couldn\u2019t possibly go through everything in this article, but let\u2019s take a look at 10 of the most important.<\/p>\n Home office space deductions are often your most sustainably valuable tax deductions, regardless of whether you\u2019re in the UK or the U.S.<\/p>\n If you\u2019re in the U.S. and have an exclusive home office space, there are two ways that you can claim tax deductions through the IRS.<\/p>\n The regular method:<\/strong> This method calculates deductions on home-related expenses based on the percentage of your home office space.<\/p>\n The simplified method: <\/strong>This method is calculated at $5 per square foot of your home office space. The maximum size is 300 square feet, and the maximum deduction is $1,500. While it takes a bit of math, it\u2019s worth figuring this one out as you can also receive mortgage interest, utilities, depreciation, etc, for that specific area.<\/p>\n For those of you in the UK, you can claim flat rate deductions, which eliminate the stress of working out individual expenses for business use (utilities, insurance, internet, etc.). These simplified expenses are based on the number of hours that you work from home per month. You can visit the GOV.UK<\/u><\/a> website for more information on how to claim simplified expenses if you’re self-employed.<\/p>\n Along with a portion of your internet and phone bill, your office supplies and equipment (such as your computer, printer, paper, and pens) are deductible so long as they\u2019re dedicated to business use. Your office furniture is also deductible, meaning that you can claim not just on your desk and chair, but on your office lamp, filing cabinets, bookcases, etc.<\/p>\n And the best part? Tax deductions include office decor, so you can feel free to buy that braided rug or wall organizer for your home office. But, like all of the above, make sure you\u2019re saving your receipts as you go along for a painless tax filing season.<\/p>\n Whether you\u2019re going down the traditional advertising route or finding new ways to market your ebook online<\/u><\/a>, there\u2019s no escaping the fact that either way, it\u2019s costly.<\/p>\n Advertising and marketing are lesser-known tax deductions that can be a huge help to freelance authors who are self-marketing their work. Anything you pay for in order to promote your services is deductible, including online ads, video ads, business cards, website hosting fees, book copies for publicity, and more.<\/p>\n As an author, you probably rely on word processing and editing software like Microsoft Office 365 and Grammarly. You may also use online accounting software or have any number of business management software subscriptions. These are all tax-deductible, meaning that you can improve your writing workflow and <\/em>your business processes without putting yourself under financial strain.<\/p>\n If you\u2019re UK based, you can even claim on software that helps to make you compliant with MTD (making tax digital).<\/p>\n While you can\u2019t deduct commuting mileage expenses if you travel to a permanent workplace outside of your home, you can <\/em>deduct mileage expenses for other business errands. For example, you can deduct mileage for business-related trips like traveling to meet clients, traveling to pick up work supplies, or traveling to events.<\/p>\n And, if you have to pay for parking during these trips, you can claim those expenses too.<\/p>\n We\u2019ve already mentioned your software subscriptions, but what about your other business-related subscriptions?<\/p>\n For example, you might subscribe to a writers\u2019 journal that you\u2019re considering writing an article for. Or, you might subscribe to a writers\u2019 newsletter to gain insight into literary trends, writing tips, language, etc. These subscriptions provide opportunities for growth and inspiration, which is why they\u2019re classed as deductible expenses.<\/p>\n Oh, and did you know that you can write off your streaming subscriptions, too? If you\u2019re a fiction author or screenplay writer, using movies to inspire stories, dialogue, and scenes is all in a day\u2019s work. And for non-fiction authors, documentaries can be a key source of information.<\/p>\n However, before you try to write off your Netflix or Amazon Prime, be aware that if you\u2019re using the services for personal and business use, you can only claim a portion of the expenses.<\/p>\n If you\u2019re traveling specifically for business-related reasons, you can write off many of the costs associated with your trip. For example, if you were attending a conference or going on an author tour in another part of the country, you could write off the mileage, taxis, hotel costs, and meals. You can even write off the car rentals or plane tickets if you\u2019re going further afield.<\/p>\n Understandably, there are some restrictions in place when it comes to deducting travel expenses. It has to be strictly business-related, meaning that you can\u2019t deduct the mini-vacation you take after your work duties have ended. And, as it stands, you can only deduct half of the value<\/u><\/a> of meals (and it doesn\u2019t include alcoholic beverages) if you\u2019re based in the U.S.<\/p>\n Most authors will require the services of an agent, editor, publicist, and book cover designer, all of which you can deduct the costs of. You can also deduct the costs of the accountant you hire to manage your finances, the lawyer you appoint to help you navigate complex contracts, and more.<\/p>\n If you were an employee, your employer would cover the cost of training and provide resources for continuous education. As a freelancer, these costs fall on your shoulders. It\u2019s not something that you can afford to miss out on either\u2014staying up-to-date with the latest industry trends and continually refining your writing skills are both critically important to your success as an author.<\/p>\n Courses, books, lectures, conferences, and even some types of certifications can be deducted, providing they are directly related to your career and serve the purpose of education.<\/p>\n The volume of writers and authors is on the rise. In the U.S., there were over 49,000<\/u><\/a> working writers and authors in 2021, while there are estimated to be as many 84,600<\/u><\/a> authors, writers, and translators in the UK.<\/p>\n As more authors flock to the market, job-hunting can become more grinding and expensive. Luckily, you can claim tax deductions on any activity you take in your pursuit of work, such as signing up to an online freelance gig platform, traveling for interviews, and attending networking events, etc.<\/p>\n![\"Tax](\"https:\/\/staticblog.payhip.com\/blog\/wp-content\/uploads\/2023\/03\/13183006\/Tax-Deductions-For-Authors.png\")
<\/a>However, the expenses that you can write off will vary depending on your individual tax situation and the tax collection government service you\u2019re under (for example, the IRS in the U.S. has slightly different deductible expenses than HMRC in the United Kingdom).<\/p>\n<\/span>10 Tax Deductions for Freelance Writers<\/span><\/h2>\n
1. Home office space<\/strong><\/h3>\n
2. Equipment, supplies, and furniture\u00a0<\/strong><\/h3>\n
![\"Tax](\"https:\/\/staticblog.payhip.com\/blog\/wp-content\/uploads\/2023\/03\/13183101\/Tax-Deductions-For-Authors-to-Claim.png\")
<\/a><\/p>\n3. Advertising and marketing<\/strong><\/h3>\n
4. Software<\/strong><\/h3>\n
5. Mileage<\/strong><\/h3>\n
6. Subscriptions<\/strong><\/h3>\n
7. Travel (including hotel costs and meals)<\/strong><\/h3>\n
![\"claim](\"https:\/\/staticblog.payhip.com\/blog\/wp-content\/uploads\/2023\/03\/13183149\/claim-tax-deductions-for-authors.png\")
<\/a><\/p>\n8. Professional services<\/strong><\/h3>\n
9. Education\u00a0<\/strong><\/h3>\n
10. Job hunting<\/strong><\/h3>\n
![\"volume](\"https:\/\/staticblog.payhip.com\/blog\/wp-content\/uploads\/2023\/03\/13183220\/volume-of-writers-and-authors.png\")
<\/a><\/p>\n<\/span>Final thoughts<\/span><\/h2>\n