2012 Year-End Tax Reductions: Business Meal Allowance

December 24th, 2012

One of the most valuable tax-busting deductions seems to be hiding under the mushroom of business inexperience.  When I review this deduction at a writers’ workshop, ranging from novice to established writers, authors and illustrators, I find that only 2 or 3 have some awareness of this tax break.

Read more at:  www.taxsolutionsforwriters.com

State Income Tax Refunds…Taxable? Yes, No, and Partially So!

December 11th, 2012

Your state income tax refund could be fully taxable, partially taxable or not taxable at all.   Read more to determine your situation at http://wp.me/p2KKzz-7B.

Taxation and those Out-of-State Speaking Fees

November 19th, 2012

States Hungry for More Revenue

If part of your income derives from speaking engagements around the country, listen up!   Those states in which you physically appear and which have a state income tax want to hear from you.  Yes, they really do!  And, if they don’t, they are more likely than ever to contact you.   Most states’ revenue statutes require anyone who earns income in their state to file a state income tax return with them.  This includes residents, part-year residents and nonresidents.

Read more at:  www.taxsolutionsforwriters.com

Free Webinar – Tax Solutions for Writers and Illustrators

November 8th, 2012

Join tax expert Gary A. Hensley as he introduces published and non-published writers and illustrators to the basics on how to manage their taxes. Gary A. Hensley, BBA, MBA is a 35-year veteran in the fields of accounting, auditing, and federal taxation.

For information on the webinar, go to:  www.taxsolutionsforwriters.com

Schedule C-EZ: Do You Qualify?

October 30th, 2012

You may use Schedule C-EZ instead of Schedule C if you:

  • Had business expenses of $5,000 or less.
  • Use the cash method of accounting. (See “Cash Basis” post).
  • Did not have an inventory at any time during the year.
  • Did not have a net loss from your business.
  • Had only one business as either a sole proprietor, qualified joint venture, or statutory employee.
  • Had no employees during the year.
  • Are not required to file Form 4562, Depreciation and Amortization, for this business.  (See the instructions for Schedule C, line 13, to see if you meet this test).
  • Did not deduct expenses for business use of your home (home office deduction).

Continue reading at:  www.taxsolutionsforwriters.com

Follow me on Twitter @GaryAHensley.

Retirement Savings Equals Tax Savings

October 28th, 2012

A Plan for Sole Proprietors to Reduce Income Tax

So, you have had a great year in the publishing world and even after maxing out your operating expenses, you are still showing a tidy profit.  What to do?  Consider reducing that profit further by funding your personal retirement account and taking a tax deduction for it.

Read more @ www.taxsolutionsforwriters.com

Comments or Questions?  Contact Gary on Twitter @GaryAHensley

Self-Employed Professionals and Foreign Income

October 27th, 2012

If you are a United States citizen with income from sources outside the United States (foreign income), you must report all such income on your tax return unless it is exempt by United States law.  This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 (if an employee) or Form 1099 (self-employed) from the foreign payer.  This applies to earned income (such as wages, commissions, professional fees and author royalties) and unearned income (such as interest, dividends, capital gains, pensions and rents).

Read more @ www.taxsolutionsforwriters.com

Writers and Foreign Travel Expenses – Part 1

October 15th, 2012

Entirely on Business

If you travel abroad entirely on business as a writer, author, illustrator or literary agent, all of your travel costs are deductible; however, meal and entertainment costs are still subject to the 50-percent limit. If your trip is considered to be entirely business, then even if some time is spent sightseeing or on other personal activities, all of your transportation expenses are still deductible.

Read more at:  www.taxsolutionsforwriters.com

Writers and “Deductible” Health Insurance

October 11th, 2012

Another Confusing Issue

This post is directed to self-employed writers, editors, illustrators, researchers and others in the publishing industry that file a Schedule C as part of their annual tax return (Form 1040). Self-employed persons may deduct the cost of health insurance (including long-term care coverage) they receive through their business but not as a business expense on Schedule C.

Continue reading at:  www.taxsolutionsforwriters.com

Writers: Stop Losing Money – Use This Fee Formula

October 6th, 2012

By Gary A. Hensley

This post is directed to those writers, editors, illustrators, and others who are asked to submit a quotation for an assignment after the requirements and due date have been outlined (or, just as likely, the client will propose a fee amount they want to pay and ask you if that’s acceptable). First, take a deep breath and probe for assignment details

Read more @ www.taxsolutionsforwriters.com