Comments on: Weekend Discussion: Tax Tips for Freelance Writers

By: Rochelle

Rochelle — Sun, 05 Apr 2009 23:30:37 +0000

for a self-employed writer to claim the home office deduction, he or she does not have to meet with clients in the office, he or she need only deal with clients in the home office via E-mail, phone, etc…
My home office is used 100% for work and I’ve never met with an editor or a potential client here. When I do meet with editors or potential clients, we meet in their office or at a restaurant or coffee shop. 90% of the time we interact on line or on the phone.

By: Bootstrapper » 50 Tools and Resources for Freelancers During Tax Season

Bootstrapper » 50 Tools and Resources for Freelancers During Tax Season — Fri, 29 Feb 2008 15:09:54 +0000

[...] Tax Tips for Freelance Writers: This discussion covers self employment taxes, deductions, and more. [...]

By: deb

deb — Thu, 28 Jun 2007 08:50:13 +0000

Nicole, I deleted the post from Academic Experts as FWJ doesn’t support term paper mills.

By: katharine swan

katharine swan — Thu, 28 Jun 2007 08:49:46 +0000

Joe said…

“Exclusively and regularly as their principal place of business, as a place to meet or deal with patients, clients or customers in the normal course of their business, or in connection with their trade or business where there is a separate structure not attached to the home; or
On a regular basis for certain storage use such as inventory or product samples, as rental property, or as a home daycare facility.”

Thanks for quoting that, Joe, but I don’t think a writer’s home office qualifies for the “or” part. A writer doesn’t have inventory; a writer’s office isn’t rental property; and a writer’s office isn’t a home daycare facility (and if it is, that’s a separate business and you have impressive powers of multitasking). Which means to me that the first part — the meet with clients part OR make the office a separate stucture not attached to the home — would have to be met. I don’t think most writers have a separate building on their property that they’re using for their office, so for the sake of this discussion I was assuming the home office in question is inside the house.

The way that I read the IRS explanation, if you are a writer and your “home office” is inside your house, you can only take the home office deduction if you use it ONLY for business — AND regularly meet with clients in that space.

The tax books and writing books I have read also interpret the law in this way, so I don’t believe I am reading something into it that isn’t there.

By: alison ashley formento

alison ashley formento — Thu, 28 Jun 2007 08:49:21 +0000

I’m not sure how to email you directly, Deb, but wanted to let you know that a recent listing–writing about Disney, wasted a bit of my time this week. Quote was accepted, pay was offered, then an odd email stating problems in the accounting office there, then a request to confirm quote, which I did, then…nothing. A heads up to all if this is relisted.

Thanks for all the great blog!

By: dawn

dawn — Thu, 28 Jun 2007 08:49:02 +0000

Although I have a separate office in my house, I don’t deduct part of my mortgage as an expense.

Why?

My accountant told me that because we own our house, if I deduct a part of it as a business expense, in essence we are landlords.

That means that on the personal side of our income tax, we’d have to claim the amount that I deducted from the business as rental income. It’s pretty much a wash …and it creates an awful lot of paperwork.

(Note that this may not apply to everyone. I’m not deemed ’self employed’ — I am my own S-Corp.)

By: joe

joe — Thu, 28 Jun 2007 08:48:45 +0000

Caution is certainly in order, and you shouldn’t try to claim deductions about which you are not certain. But there is no reason to not claim legitimate deductions. Deductions on a schedule C are only audit magnets if they are excessively large in relation to income.

A page at the IRS lists these qualifiers for the home office deduction:
“Exclusively and regularly as their principal place of business, as a place to meet or deal with patients, clients or customers in the normal course of their business, or in connection with their trade or business where there is a separate structure not attached to the home; or
On a regular basis for certain storage use such as inventory or product samples, as rental property, or as a home daycare facility.”

I don’t read that as a requirement that you meet with clients in your home office. What do you think?

By: anonymous

anonymous — Thu, 28 Jun 2007 08:48:25 +0000

Per my accountant, she has me pay a full 30% to the federal gov’t and then 5% to my state just to make sure I’ve overpaid rather than underpaid. If you underpay by even a little, penalties will be involved.

Home office deductions are tricky, so I don’t use them. I was told that only if the computer is strictly used for work and nothing else – no chatting with friends/family, no personal emails, no kids slipping on for a few minutes, no shopping, no reading news, etc. And the room you set aside cannot be used for anything else. In my case, I have a laptop that I use in my dining room, so I don’t qualify anyway.

By: deb

deb — Thu, 28 Jun 2007 08:47:57 +0000

Be careful with the deductions, they’re audit magnets. There’s no better way to grab the IRS’ attention than to all of a sudden start deducting everything from magazine subscriptions to scotch tape.

I do deduct certain things, my Internet connection, for instance. I don’t go crazy with the itemizing though.

Here are a few tips for avoiding or surviving an audit, if anyone is interested.

By: tina marie frawley

tina marie frawley — Thu, 28 Jun 2007 08:47:36 +0000

Great article. I tend to do things (like make purchases) and think “write-off” (which is also how I justify cool writer’s toys to my husband) making the purchase easier. Then I don’t write it down or save the receipt! A notebook with a pocket is probably best.