This income goes on Schedule C as well as long as you are still working as a writer. If all your income derives from publishing books with a single publisher, you might not have numerous 1099-NEC forms to keep track of, but you could receive a 1099-MISC from the company you published with. You can deduct half of your self-employment tax on Schedule 1, Part II of your tax return, reducing your overall taxable income. The amount you owe-15.3%-is based on the net amount of income you arrived at when you completed your Schedule C. But when you're self-employed, you must pay all of these taxes yourself. When you work for someone else, your employer pays half of your Social Security and Medicare taxes and you pay the other half. This deduction isn’t entered on your Schedule C-it's an adjustment to your income that you report on Schedule 1, Part II of your tax return. The policy needs to be in your name or in the name of your business. If you’re not covered by an employer-sponsored policy, you can likely claim a deduction for the full cost of your premiums, even if your policy also covers your spouse and dependents. It's likely that you pay for your own health insurance if you’re a freelancer. The Self-Employed Health Insurance Deduction

Your home office space must be dedicated exclusively to your writing, so clean out that spare bedroom, move in your office equipment and supplies, and get to work. For example, if your dedicated work space takes up 15% of the total square footage of your home, you can deduct 15% of your mortgage principal or rent payment, utilities, and insurance.īut if you work at the kitchen table, you’re out of luck because you likely use that room for other things as well as your writing business. For this reason, you may be able to claim a home office tax deduction based on the percentage of your home that you use for work. The Home Office DeductionĪs a freelancer, you probably plant yourself at your desk each morning right there in your home.

Be sure to keep good records of all of your business expenses so you can provide them to the IRS if necessary. These costs are deducted from your total business income, and the resulting number is what you report as self-employed income on your tax return. Other “ ordinary and necessary” expenses for your writing business.Supplies such as printer paper, ink, and other office necessities.Use Schedule C to list your income and business expenses. As a self-employed freelance writer, you’ll complete Schedule C to arrive at your taxable income. You probably won’t have to pay taxes on all of the income you earn from writing. If you don’t receive a 1099-K, the IRS still expects you will report all your income, regardless of the amount. North Carolina and Montana also have a $600 threshold, although state tax officials have said these states may offer relief. Maryland, Massachusetts, Vermont, Virginia and the District of Columbia have a $600 threshold for requiring 1099-K in effect for 2023. However, some individual states have already begun to use the lower reporting threshold. However, the IRS recently delayed the implementation of the new $600 reporting threshold for transactions from third party processors like Venmo and Paypal, reverting tax year 2023 back to the previously higher 1099-K reporting threshold (over $20,000 in payments and more than 200 transactions). The IRS planned to implement changes to the 1099-K reporting requirement for the 2023 tax year. Payers will also send these forms to the IRS to report your income.

If you receive payments through online payment services such as PayPal, you might receive a 1099-K. When you file your taxes, you're required to report all your income to the IRS, so if one company paid you only $400-less than the 1099-NEC requirement-this doesn’t mean you don’t have to claim it it just means the publisher doesn’t have to provide a 1099 form. When you sell your work to a company for a total of $600 or more, the publisher should provide you with a 1099-NEC form at year’s end.

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