I wrote a book. I looked for an agent. I self-published. My husband wrote a book. I wrote another book. We self-published 2 novels, a collection of short stories, 4 short novels, and a total of 38 ebooks in 2012. Now it’s time to think about Tax Season!
The good news is, we owe more taxes because we sold books! The bad news is…we have little idea how to handle reported sales, paid royalties, author expenses, etc.
We have three months to figure out a vastly changed 1040 situation. It’s the first week of January, and already I’ve seen these questions popping up in indie author groups:
Does Create Space give tax forms for the season?
What do you do with the statements? It is a W-2/ 1099 form?
Do you just take the amount of earnings and lump it on top of your income?
Do you need to pay self-employment tax on your book earnings? SS? Medicare?
I have to apologize if you came here looking for answers. What I have is a situation and in a couple months I’ll be visiting a CPA. Why not? It is a business expense. Meanwhile though, I’m hoping to make a resource pool for others like us who began this indie journey in 2012. So comment below with the best websites, blogs, and info you garner. I’ll do likewise, and we’ll all learn together. I love collaborative learning.
So far the best site I’ve found is this post by Alison Pensy who does numbers by day and writes by night. Again, there’s good and bad news since you won’t get to count all those miles you didn’t keep track of in 2012. But you’ll be so much better prepared in 2013.
Check out her information & send more links.