Tax and Other Information for Self-Employed Writers

Did you earn more than $600 writing online this year? Then you may have to provide that information to the IRS on your taxes this year. If you made less than that from one, but had earnings from several publishers and expenses and/or other deductions, you may want to file a tax return for your self-employed earnings as a nonprofessional writer.

The best place to start is with a tax professional who is up-to-date on the latest IRS tax information. It is well worth your time and money to invest in a professional accountant or tax advisor because they hopefully will stand behind you, your income tax statement and any refund requests that you file. The following information is simply basic forms and knowledge to get you started and to plan ahead.

First, it is always helpful to follow your earnings statements online from the publishers that you write for and they should send you a tax statement if your earnings exceed $600 in one year. Make sure that your name, address and social security numbers are up-to-date. Make a note of the online publisher's website which provides financial information, their physical address and phone number, as well as any payment information. If you are self-employed with no employees your personal social security number can act as your sole proprietorship business tax ID number.

Using monikers and/or pseudonyms to hide your identity when you write may provide you with a sense of security and privacy, but it becomes much more difficult to identify your work and who created it, who earned it and to claim copyright of your materials and/or claim earnings for your work on your taxes. It is best to keep the names simple and singular. The Library of Congress offers free advice online regarding registering your work and there are special categories for books, online websites, visual, audio and serial works of art. If you sell your work outright to the publisher, they may choose to continue to publish your work indefinitely. Many are now starting performance bonus royalty programs that continue to earn you money continuously so long as the piece is still being read and enjoyed.