Tax Deductions for Writers
Taxes suck. That’s a universal certainty and it's really not going anywhere. But if there’s any silver lining to taxes, it’s deductions. Getting tax deductions is like getting mugged, but then the mugger lets you keep your watch, because it’s used and ugly and what the hell would he do with it anyway?
As a writer, it’s important to be aware of exactly what deductions you’re eligible for. We compiled a list below for you to reference as you prepare your taxes this year. But the list comes with two important caveats:
1) We are not tax professionals. We hate math in fact, and are so bad with receipts we barely cashed in on any of the deductible items listed below. So take all of this with a large, sodium rich, blood pressure raising boulder of salt.
2) Seriously. Number one.
Food
As a professional writer, you’re permitted to deduct all meals that are “ordinary, necessary and business related.” This means that you can deduct the lunch you bought when you met with that manager in Studio City. But you can’t deduct that lunch if you ate two lobsters and downed an entire bottle of champagne. If entire bottles of champagne are something you deem ordinary and necessary, then please take a moment to re-evaluate your life.
Basically, you can deduct any food you spend money on if the meal includes direct business discussions. Meetings with agents, managers, producers and fellow writers all count.
But keep careful records of these meetings, because the more meals you deduct, the more suspicious things will seem. Log who you met with as well as what you discussed over the meal.
Travel
Any business trips you take are deductible. If you fly out to LA for three days to meet with potential managers, you can deduct almost all of your travel expenses. This includes plane tickets, hotels, , taxi rides, and lots more. Meals are only 50% deductible. Keep your receipts!
Research
As a writer, it’s your responsibility to stay current with movies, TV, plays and tons of other entertainment mediums (scripted and non-scripted). You also probably spend money on books, magazines and websites that you use to stay on top of your craft.
A lot of that money is deductible, including: movies, plays, cable, Net Flix, writing books and more. Be honest, though. Don’t include movies or theater unless you truly were there to stay current. For example, as a comedy writer, I’d feel much more comfortable writing off “21 Jump Street” than the box set of “Pawn Stars” I shamefully bought on Amazon last Thursday.
This also includes subscriptions to any websites you might use as part of your craft (IMDBPro, InkTip etc.).
Home Office/Equipment
If you designate at least one room in your house to writing, then you’ve got a home office, and that’s deductible. The room has to be solely used for writing, but if it is, you can deduct it based on the square footage of your home, and the square footage of your home office. You can also deduct associated costs, like insurance, utilities and repairs.
Note: You CANNOT deduct a ‘dual purpose’ room. That means if you have a desk in your living room, where you also nap and watch TV, it’s not deductible. Kind of sucks for apartment dwellers, but oh well. Deduct all the other stuff here and you’ll still be saving money!
As far as equipment goes, you can deduct any writing/office equipment you bought in the last taxable year… Examples: Final Draft 8, a new printer, printer paper, a new office chair, or a new computer.
Car Expenses
You might not realize it, but writing actually involves a gross amount of driving. You drive to meetings, to your writer’s group, to the movies, and to that alleyway where you cry every Friday because nobody likes your scripts.
The easiest way to keep track of your deductible car expenses is to simply keep a log of all the miles travelled for business purposes. You can then use the IRS “standard mileage allowance” (51 cents/mile travelled) to determine the amount of your deduction.
There’s also a second method, but that requires a lot of careful receipt categorization, math and numbers. For obvious reasons, we’re not going to get into that here. We’re writers, not brain scientists, right? I mean… I don’t know about you, but I’ve only operated on like three brains and it didn’t go well.
For quick reference, here’s a list of stuff most writers spend money on that is probably deductible:
- Books
- Movie tickets
- Theater tickets
- Improv tickets
- Plane Tickets
- Almost any kind of ticket
- Food
- Office Equipment and supplies (computer, printer, pencils)
- Vehicle usage
- Printing Services
- Classes and online services
- Lawyer fees
- DVDs
- Netflix
- Hulu Plus
- Lots of other stuff
Okay. So that’s a brief look into what you, as a writer, might be able to deduct on your taxes this year. But remember, you can’t deduct anything you didn’t keep a careful record of. IF you don’t have any receipts, don’t worry. Start saving them now, and you’ll thank us in 2013.
As a writer, it’s important to be aware of exactly what deductions you’re eligible for. We compiled a list below for you to reference as you prepare your taxes this year. But the list comes with two important caveats:
1) We are not tax professionals. We hate math in fact, and are so bad with receipts we barely cashed in on any of the deductible items listed below. So take all of this with a large, sodium rich, blood pressure raising boulder of salt.
2) Seriously. Number one.
Food
As a professional writer, you’re permitted to deduct all meals that are “ordinary, necessary and business related.” This means that you can deduct the lunch you bought when you met with that manager in Studio City. But you can’t deduct that lunch if you ate two lobsters and downed an entire bottle of champagne. If entire bottles of champagne are something you deem ordinary and necessary, then please take a moment to re-evaluate your life.
Basically, you can deduct any food you spend money on if the meal includes direct business discussions. Meetings with agents, managers, producers and fellow writers all count.
But keep careful records of these meetings, because the more meals you deduct, the more suspicious things will seem. Log who you met with as well as what you discussed over the meal.
Travel
Any business trips you take are deductible. If you fly out to LA for three days to meet with potential managers, you can deduct almost all of your travel expenses. This includes plane tickets, hotels, , taxi rides, and lots more. Meals are only 50% deductible. Keep your receipts!
Research
As a writer, it’s your responsibility to stay current with movies, TV, plays and tons of other entertainment mediums (scripted and non-scripted). You also probably spend money on books, magazines and websites that you use to stay on top of your craft.
A lot of that money is deductible, including: movies, plays, cable, Net Flix, writing books and more. Be honest, though. Don’t include movies or theater unless you truly were there to stay current. For example, as a comedy writer, I’d feel much more comfortable writing off “21 Jump Street” than the box set of “Pawn Stars” I shamefully bought on Amazon last Thursday.
This also includes subscriptions to any websites you might use as part of your craft (IMDBPro, InkTip etc.).
Home Office/Equipment
If you designate at least one room in your house to writing, then you’ve got a home office, and that’s deductible. The room has to be solely used for writing, but if it is, you can deduct it based on the square footage of your home, and the square footage of your home office. You can also deduct associated costs, like insurance, utilities and repairs.
Note: You CANNOT deduct a ‘dual purpose’ room. That means if you have a desk in your living room, where you also nap and watch TV, it’s not deductible. Kind of sucks for apartment dwellers, but oh well. Deduct all the other stuff here and you’ll still be saving money!
As far as equipment goes, you can deduct any writing/office equipment you bought in the last taxable year… Examples: Final Draft 8, a new printer, printer paper, a new office chair, or a new computer.
Car Expenses
You might not realize it, but writing actually involves a gross amount of driving. You drive to meetings, to your writer’s group, to the movies, and to that alleyway where you cry every Friday because nobody likes your scripts.
The easiest way to keep track of your deductible car expenses is to simply keep a log of all the miles travelled for business purposes. You can then use the IRS “standard mileage allowance” (51 cents/mile travelled) to determine the amount of your deduction.
There’s also a second method, but that requires a lot of careful receipt categorization, math and numbers. For obvious reasons, we’re not going to get into that here. We’re writers, not brain scientists, right? I mean… I don’t know about you, but I’ve only operated on like three brains and it didn’t go well.
For quick reference, here’s a list of stuff most writers spend money on that is probably deductible:
- Books
- Movie tickets
- Theater tickets
- Improv tickets
- Plane Tickets
- Almost any kind of ticket
- Food
- Office Equipment and supplies (computer, printer, pencils)
- Vehicle usage
- Printing Services
- Classes and online services
- Lawyer fees
- DVDs
- Netflix
- Hulu Plus
- Lots of other stuff
Okay. So that’s a brief look into what you, as a writer, might be able to deduct on your taxes this year. But remember, you can’t deduct anything you didn’t keep a careful record of. IF you don’t have any receipts, don’t worry. Start saving them now, and you’ll thank us in 2013.
