It's Tax Day!

Why, yes, I am excited to write a check to the IRS this year! I made money on my books last year! Whoo-hoo!

The actual return was electronically filed a couple of weeks ago, but this morning I swung by the post office to drop the check in the mail. Then I hit Target because they're having an excellent sale on Pepsi products. (Pepsi Max is my only vice besides chocolate.)

Now, I'm sitting in the Barnes & Noble cafe, trying to wrap up a few projects.

For example, I'm posting chapters of Blood Sacrifice over at my Blood Lines blog. Chapter Two went live this morning. (Hit the link for Blood Lines under My Blog List over on the right if you're curious.)

Between working on that, I've got edits on my Super Secret traditional submission and the last couple of pages of Alter Ego's last book in her first series to write.

All-in-all, this is a damn good Monday morning!

The Tax Man Cometh - Redux

Currently reading - Percy Jackson and the Olympians:  The Battle of the Labyrinth by Rick Riodin

Last year, I did a post on keeping receipts and logs as proof of your Schedule C deductions for your writing business.

Well, there's a couple of rumors I've heard lately that definitely need to be addressed.

1) You have to make a profit 2 out of 5 years in business.

NO, you do not!  There was a law to that effect decades ago.  (And I do mean decades.)  It is no longer in effect because studies have shown that new businesses are lucky to break even in their first five years of existence.  All you have to show is an intent to make a profit.  That goes back to keeping receipts, showing progress in your writing, and actively seeking publication.

2) You have to have $600 in income to claim Schedule C business deductions.

Once again, NO, you do not!  The $600 rule applies to whether or not you are required to send a 1099 to your vendor.  Example:  If I pay my cover artist, Sierra, $600 or more in the calendar year of 2011, I will have to send her a 1099 by January 31, 2012.  If I only pay her $599.99 or less in calendar year 2011, I do not.

Now, does this mean you can avoid an audit?  Not if you get an IRS with a burr up his butt.  And guess what?  You may not claim any deductions regarding your writing and STILL GET AUDITED.  So you're only hurting yourself by not taking your allowed business deductions.

As always, please consult with a qualified tax consultant for your individual circumstances.

The Tax Man Cometh

Currently Reading - Kitty and the Silver Bullet by Carrie Vaughn

Total word count for yesterday - 1,108

Warning: The following cannot be construed as legal advice.

Tax season is closing in on us. If you're persuing a writing career like me, those business deductions add up, but the trick is treating your writing career LIKE A BUSINESS!

That means keep accurate records. Because of various business ventures, DH and I have a fabulous accountant named Ed. I understand not everyone can cough up the moola for an accountant, but that doesn't mean you can't keep your ducks lined up. We use Quicken, an easy to use and affordable software package.

Label your receipts and keep them in a safe place. Better yet, scan them and keep the digital info off site, like a safe deposit box.

Keep a log of pitches, queries and submissions. I have an Excel spreadsheet for each novel, showing who has queries, partials or fulls, the date I sent them, the date of the response, and what the response was.

Little things like this will avoid major trouble with the IRS.