
Our event starts at six o'clock and ends at eight, when a live band takes the stage from Martyn. You can find MoJoe's on Facebook for details and directions.
We hope to see you there!
One gal found out her husband was cheating when he called her to come bail him out of jail. The charge? Soliciting a prostitute. (What balls to call his wife to come rescue him. We're talking big ones.)
Another husband came home and told his wife he was involved with another woman and wanted a divorce. Come to find out he'd been cheating for months, lying about where he was and what he was spending money (several thousands) on, and opening secret bank accounts. The photos on his phone and his computer records were revealing. (It's important to have a friend who knows how to search his electronic devices should you find yourself in this situation.)
A third husband brought his girlfriend to the business he owns with his wife, and proceeded to flirt outrageously with the other woman. Right there in front of the customers and his wife. Midlife crisis, anyone? (It was the boobs that got him. Definitely the boobs. That is all.)
gather your 1099-MISC statements from Amazon, Apple, Smashwords, B&N, etc. Ensure your name is spelled correctly and your Social Security number is accurate.
summarize any fees you received for speaking or other engagements.
summarize the income you earned from selling books directly (at book signings, book fairs, or direct from your website). Remember to add up the cost of all those books including shipping, any postage related to shipping them to buyers, and do a count to see how many books you have left in inventory at the end of the year.
prepare a simple schedule summarizing all the expenses related to your writing business (we have four businesses, use an Excel spreadsheet for each, and update them regularly). Use the expense section from Schedule C as a guide. (Read this post if you're not sure about using Schedule C over Schedule E.)
remember to include the miles you drove related to your writing business. If you take a royalty check to the bank, take a writing related package to the post office, visit a book club, or pick up paper and toner, all of these miles are legitimate business expenses. The easiest way to track them is to keep a mileage log in your vehicle, and write down the date, purpose of your trip, and starting and ending miles each time you make a business related trip (the IRS wants you to use a log and keep it as documentation). Failing that, estimate distances and number of trips. This year, start logging.
remember to include the cost of hotels, plane tickets, cab fares, parking, and meals when you travel for writing related purposes. If you attend writing conferences, the fees to attend are deductible.
include the cost of memberships or dues paid to writing related organizations, and the cost of writing related subscriptions.
if you write at home, measure the square footage of the area you use exclusively for your writing and the storage of writing related materials. You might be entitled to take an 'office in the home' deduction. Ask your tax preparer.
calculate the cost of health, dental, and long term care insurance for yourself and your family. If your writing business is profitable, you may be able to deduct some or all of these costs.
If you are actively involved in the business of writing and intend to make a profit through your writing, complete Schedule C. You can claim all the expenses related to running your book writing and publishing business on Schedule C.
- if you are no longer actively engaged in the business of writing, but are still receiving royalties from your books, or
- if you hold the royalty rights to a book you did not produce.
If you are in business as a self-employed writer, inventor, artist, etc., report your royalty income and expenses on Schedule C or C-EZ.
You earn $15,000 in royalties from your writing business in 2014. Expenses related to that business in 2014 total $7,000. Your net income from writing is $8,000 ($15,000 minus $7,000). You'll pay $612 in SE tax ($8,000 x 7.65%).
You are a married individual and pay $5,500 in health and dental insurance premiums (out of your pocket, not paid by an employer), and $1,500 in long term care premiums for you and your spouse. Because the total of your health related insurance premiums, $7,000, does not exceed your self-employed net income of $8,000, you can deduct the full $7,000 on page one of your Form 1040 (line 29).
In this case, it benefits you to file Schedule C, despite the SE tax. "Above the line" deductions - those taken on page one of your Form 1040 - reduce your tax liability by your tax rate. (Keep hanging on, we're almost done.)
Let's say you and your spouse jointly earn $40,000. That puts you in the 15% tax bracket. The $7,000 deduction for health insurance premiums saves you $1,050 in taxes ($7,000 x 15%). Yes, you're paying $612 in SE tax, but you're also saving $438 on your total tax bill ($1,050 minus $612).
If you and your spouse earn $75,000, that tips you over the edge into the 25% tax bracket. Your $7,000 in health insurance deductions saves you $1,750 in taxes ($7,000 x 25%). You're paying $612 in SE tax, and saving $1,138 on your total tax bill ($1,750 minus $612).To get a better idea of how this deduction works in your situation, see the IRS tax brackets for 2014, here.
Cass Elliot is my best friend. Has been since, well, maybe not since before dirt, but certainly since we were eating dirt. Usually at her house. Mud pies tasted better there, probably thanks to something toxic in the soil.
Sid and her first calf |