Ah, tax season. That magical time of year when writers across the land frantically dig through drawers, hunting for receipts, and asking themselves, “Can I deduct this glittery notebook?” (Spoiler: probably not. But your editor, cover designer, and even that Canva Pro subscription? Yep.)
Whether you’re an indie author, a traditionally published writer, or living that hybrid life, if you’re making money from your words, congrats: you’re running a business. Welcome to the club, Authorpreneur!
We recently covered this topic in our latest episode of the Pros Talking Prose podcast. You should check it out for the full lowdown.
Here’s the thing: you don’t have to be a numbers person to get your tax life together. You also don’t have to let debilitating anxiety around money control your life, like me. You just need a system. And possibly coffee. Lots of coffee.
Disclaimer: I’m not a tax professional. The information in this post is for educational and informational purposes only. For personalized tax advice, please consult a qualified tax professional who understands small businesses and creative entrepreneurs.
Here’s What You Should Be Doing (Ideally Before April 14th at Midnight)
1. Track All Your Income
Yes, even the $37 you made from that poetry chapbook you sold on Etsy. Keep track of all royalties, book sales, speaking gigs, consulting, freelance gigs, affiliate links—you name it. If the money came in because you’re an author, the IRS wants to know about it.
2. Deduct All Legit Business Expenses
If it supports your author career, it’s probably deductible. Think: editing, cover design, software (like Vellum or Scrivener), author website hosting, ads, office supplies, and yes, even conference travel. Just make sure you’ve got the receipts and a paper trail. (Hint: I have a freebie called Paper Trail to help with exactly this. Keep reading!)
3. Save All Your Statements
Amazon KDP. IngramSpark. Draft2Digital. PayPal. Venmo. Stripe. If it pays you, it probably spits out a statement or a 1099. Save them in a labeled folder so you’re not crying into your tea at tax time.
4. Consider Paying Quarterly Taxes
If you’re earning regularly, the IRS expects you to pay quarterly. Because nothing says “romance” like spending Valentine’s Day calculating estimated taxes.
5. Hire a Pro Who Gets Creative Businesses
Not all accountants understand what we do. (“No, Dave, I’m not a hobbyist. I just happen to write space cowboy romances on Tuesdays and make money doing it.”) Find someone who gets indie authors and can help you keep more of what you earn.
Bonus Tip: Claim Your Space
If you use a specific space in your home solely for writing and business, you might qualify for the home office deduction. Just don’t try to claim your entire house as a “writing retreat.” The IRS has read The Shining, too.
To make this easy, I created a free downloadable Author Tax Prep Checklist. Grab it, print it, and check things off while you sip something strong and stare dramatically out a window.
🧾 [Download the Checklist Here]
But if taxes feel like just one more plot hole in your author journey, let me invite you to go deeper:
Author to Authorpreneur: Master the Business of Writing
FREE, LIVE Webclass
This upcoming webinar is the pep talk and roadmap you need to treat your writing like the business it is. We’ll talk taxes (briefly—we promise), business structure, branding, and more. Because building an author career shouldn’t feel like guesswork.
Our full flagship course is open for enrollment and ready to guide you step-by-step through the publishing process—from manuscript to marketable, professional book. It’s built for serious authors who want to publish with clarity, confidence, and full creative control as well as understand how to run a successful author business. There isn’t another product on the market as comprehensive and fully inclusive as this publishing program. Don’t believe me, just check it out. There is nothing wrong with doing your due diligence. In fact, I fully encourage it.
If you’re wondering whether you should go traditional, self, or indie, grab our free map to publishing paths and start your journey the smart way.
Remember: the IRS doesn’t care if your main character lives in a fantasy world—your money lives here. Stay on top of your finances, treat your author biz seriously, and keep writing the stories only you can tell.
(And maybe skip buying another glittery notebook. Just this once.)
