(Disclaimer: Not all write-offs will apply to every author. Tax situations can vary significantly. If you aren’t sure whether you qualify to write off the expenses below, you can speak to a tax professional.)

Whether you’re dreading or looking forward to the tax filing season, taking advantage of tax write-offs for authors might help writers save money. So, it’s time to gather your receipts and your end-of-year tax documents. (If you’re a U.S. author, you might receive a 1099-MISC, which will document your book royalties for the previous year.) But before you start adding up expenses, you’ll want to determine whether the IRS will classify your writing as a business.

Tax write-offs for authors

Taxpayers can write off business expenses, but they can’t write off hobby expenses. So, is writing a business or a hobby? The answer varies from person to person, and the IRS will weigh in. You’ll want to consider several things when classifying your writing for tax purposes.

• Do you treat your writing like a business?
• Has your writing failed to turn a profit for several years in a row?
• Do you expect to make a profit?

The list above is not an all-inclusive list of considerations. Authors can check the IRS website for more information. When in doubt, it’s a good idea to speak to a tax professional.

Book editing expenses

Professional editing isn’t cheap. Some edits can cost thousands of dollars. So, if you can deduct those expenses, don’t miss out. Amounts paid for developmental editing, editorial assessments, line editing, copy editing, and proofreading could all qualify as expenses. But don’t forget about the less costly editing expenses:

• Did you purchase premium versions of editing software, such as Grammarly?
• Did you purchase printer ink or paper for the purpose of printing and editing your manuscript?
• Don’t forget about the small stuff, such as red pens or highlighters, if you edited your manuscript the old-school way.

Book formatting tax write-offs for authors

If your writing qualifies as a business, book formatting expenses qualify as tax write-offs. Whether you paid a pro or purchased software, such as Atticus, it’s time to dig out those receipts.

Paid beta reading services

Did you pay any beta readers to assess your manuscript(s)? If so, you might be able to write off those expenses. You’ll want to ensure you have documentation for how much you paid and what it was for. If you used a professional beta reading company, such as Beta Reader Bookings LLC, you can check for a charge from the company on your credit or debit card statement, or you can check your PayPal account for a copy of an invoice (if you paid one).

READ MORE: What is a Beta Reader?

Book cover design and illustrations

Authors may be able to write off various types of art expenses. There’s book cover design, of course. But you might uncover other deductible expenses, too.

• Did you pay an illustrator?
• Did you hire someone to make a map (common for the Fantasy book genre)?
• Did you hire someone for character design or to design a logo?

Book marketing costs

Book marketing might be one of the hardest parts of getting sales, especially as a new author. And some authors spend quite a bit of money to reach their target audience. There are Amazon ads, Facebook ads, book trailers, and many more paid marketing options to choose from. If you used any of them, they could qualify as tax write-offs this year.

Author copies of your book

Did you order proof copies from Amazon? Don’t forget to add up the costs when you do your taxes. Or, perhaps, you didn’t use Amazon KDP and used another printer instead. Whichever is the case, keep track of what you paid to obtain copies of your published book.

Research materials

It’s no secret that some novels require extensive research. You might need to do a deep dive into certain parts of history, science, law, psychology, or whatever else. And if you paid to obtain that research, that cost could be a tax write-off. Maybe you paid someone to research for you, maybe you purchased books for your research, or maybe you opted for a paid subscription to a professional journal. As long as the research was for your book, the expenses likely count.

Start-up cost tax write-offs for authors

Did you have any startup costs to establish yourself as an author? These expenses can include anything from a new laptop to fees for setting up an LLC in your state.

Can authors claim the home office tax deduction?

For the purpose of the home office tax deduction, the IRS doesn’t differentiate between authors and other types of businesses. If the IRS considers your writing a business, you might qualify for this deduction if the following are true:

• You use the office (or area of your home) solely for the purpose of your writing business
• Your home office is your primary place of business

Both renters and homeowners may qualify for the home office deduction. This can be a huge tax “write-off” for authors. But the exact amount authors can deduct depends on several factors, such as whether they opt for the simplified or regular deduction, the square footage of their home and their office, and more.

Other tax write-offs for authors

This list of tax write-offs for authors isn’t an all-inclusive one. Some authors may qualify to write off other expenses, as long as they are qualified business expenses. Here are a few other costs to consider:

• Pens and pencils
• Sticky notes
• Notebooks
• Planners
• Flash drives
• Computer mouse and mouse pad
• Tablets and IPads
• Website costs
• Shipping costs
• Vendor fees

Remember to only write off business expenses you actually incurred. If the IRS chooses to audit you, you’ll be expected to provide proof. Filing taxes as a new author can be tricky, but there are tax professionals who can help you through the process (and their fees might even qualify as tax write-offs, too).