Tax Deductions for New Indie Authors
|

Tax Deductions for New Indie Authors—5 Top Tips

By Reading Time: 5 minutes

“The avoidance of taxes is the only intellectual pursuit that still carries any reward.” — John Maynard Keynes.

If you’re a new indie author, you might be surprised at how many writing-related expenses can potentially be tax-deductible. By understanding and utilizing tax deductions, you can maximize your earnings and ensure that your hard work is rewarded. Understanding what you can legally write off as a business expense could save you hundreds, if not thousands, of dollars. But it’s not always straightforward.

This writer’s guide walks you through smart, legal deductions indie authors can explore, so you keep more of what you earn and feel confident during tax season. (Note: This is for educational and informational purposes only. It’s not intended as a substitute for a legal or financial professional advisor. Always seek the advice of a licensed professional.)

1. Understanding Author Tax Deductions: Are You a Business or a Hobby?

The IRS has different rules for hobbyists versus business owners. To qualify as a business, you need to show a profit motive, even if you’re just starting. If you treat your writing like a business, you may be eligible for deductions. Keep clear records, pursue sales, and build a professional presence (like a website or author platform). This builds your case. Show you’re serious by tracking expenses, filing business licenses (if required), and marketing your work.

2. Top Tax Deductions for Indie Authors

Here are common expenses you might be able to deduct if your writing qualifies as a business:

Writing and Publishing Expenses

  • Editing, proofreading, and formatting services
  • Cover design and interior design
  • Self-publishing platforms’ fees (e.g., ISBNs, distribution charges)
  • Print-on-demand expenses

Office and Equipment Costs

  • Laptop or computer used for writing
  • Printers, monitors, and writing accessories
  • Office furniture, if used primarily for business
  • Office supplies (notebooks, pens, printer ink)

Marketing and Promotion

  • Website hosting and domain registration
  • Email marketing services (e.g., ConvertKit, MailerLite)
  • Advertising (Amazon, Facebook, BookBub, etc.)
  • Book trailers or promotional videos
  • Review copies sent to influencers (as promo materials)

Travel and Conference Fees

  • Writing or publishing conferences (registration, airfare, lodging)
  • Book signings or author events (if tied directly to your business)
  • Meals during business travel (note IRS restrictions)

Business Services and Tools

  • Legal or accounting advice
  • Business software (e.g., Scrivener, Atticus, Grammarly, Vellum)
  • Cloud storage subscriptions used for writing projects

3. Track Everything: Good Records Are Essential

The IRS loves documentation. Keep receipts, mileage logs, payment confirmations, and track your income and expenses on a monthly basis. You can use Excel, Google Sheets, or tools like QuickBooks, Wave, or Notion. Take screenshots of digital receipts and store them in a dedicated tax folder for easy access. An organization can save you a significant amount of stress and money in the long run.

4. Home Office Deduction: Proceed with Caution

If you use part of your home exclusively for writing, you might qualify for the home office deduction. But the rules are strict. It must be a dedicated space used solely for your author business. Consult a professional to determine which option is best for your specific situation. This step is crucial and can provide you with the reassurance that you’re making the right decisions for your business.

There are two ways to calculate the home office deduction:

  • Simplified Method (easy but capped)
  • Actual Expenses Method (more complex but may yield greater deductions)

5. What You Can’t Deduct

Not everything counts as a write-off. These common mistakes can lead to red flags:

  • Personal reading material (unless strictly used for research)
  • Home internet or cell phone bills in full (only the business-use percentage may be deducted)
  • Clothing or makeup for videos/events (unless they are theatrical costumes)

Wrap-Up: Make Tax Time Work for You

Understanding what you can deduct as a business expense is one of the simplest and most powerful ways to keep more of what you earn as an indie author. By learning the rules, organizing your records, and approaching taxes with confidence, you set yourself up for long-term financial success. This is about recognizing that your writing is a real business that deserves serious attention.

Claiming the right deductions can make a big difference to your bottom line as a new indie author. While tax law can feel overwhelming, approaching it with awareness and organization can turn it into an advantage, rather than a source of dread.

Consider consulting with a CPA who specializes in creative businesses. They can provide personalized advice, help you navigate complex tax laws, and ensure you’re maximizing your deductions. You work hard to build an author brand. Don’t miss out on the rewards.

We trust you’ve found this writer’s guide both enlightening and inspirational. They’re designed to equip you with the tools and insights to bolster your success as a burgeoning author.

We know the path of writing is one filled with ceaseless learning and enhancement. You are not expected to tread this path solo. We’re thrilled to accompany you on this journey, offering support and motivation at every turn. Our objective is to deliver foundational knowledge and pragmatic guidance, enabling you to traverse the literary landscape with greater confidence.

For more guidance, see the first writer’s guide in this series,  Author Financials—6 Top Tips for New Indie Authors.

How can we help? To let us know, please fill out our Contact form. Happy writing!

If you have a draft you want to publish with the help of AI, read, Is Your Book Ready to Self-Publish? For help writing a non-fiction book, read Write Your First Non-Fiction eBook: a 30-Day Workbook for Getting It Done.

Author Tax Deductions Checklist

Use this checklist to review what writing-related expenses you may be able to deduct.
(Check with a licensed tax professional for personalized advice.)

Writing & Publishing Expenses

  • Proofreading services or editing
  • Formatting and layout design
  • Cover design or illustration
  • ISBNs, barcodes, and distribution fees
  • Printing costs (POD or bulk)

Office & Equipment Costs

  • Laptop or desktop computer
  • Monitor, keyboard, printer
  • Office furniture used for business
  • Pens, notebooks, printer ink

Marketing & Promotion

  • Website hosting and domain name
  • Email newsletter service (e.g., MailerLite)
  • Online advertising (Amazon, Facebook, etc.)
  • Book trailers or promo videos
  • Review copies and giveaways

Travel & Professional Development

  • Conference registration fees
  • Airfare, hotel, and transport for business travel
  • Meals during travel (if eligible)
  • Local author events or signings

Business Services & Tools

  • Legal or tax consulting fees
  • Publishing or writing software (e.g., Atticus, Vellum, Scrivener)
  • Cloud storage used for writing projects

Home Office (if eligible)

  • Dedicated workspace used only for writing
  • Portion of home expenses (utilities, mortgage/rent)
  • Internet or phone (business-use percentage)

#

Similar Posts