The Finance Department: Federal Income Taxes (Part 4)

Federal Income Taxes: Standard Deductions vs. Itemized Deductions (AKA How Not to Commit Fraud) The Finance Department (Part 4) As you can see from the chart above, your book business falls under your personal income tax umbrella, but let’s break it down even further. Itemized vs. Standard Deductions When you file your personal income taxes, […]

The Finance Department: Federal Income Taxes (Part 3)

Federal Income Taxes: Profit, Loss, and Write-offs The Finance Department (Part 3) If your book business earned $1,000 this year (aka profit or income) and you spent $1,000 on your business’s expenses (book creation, marketing, office supplies, etc.) (aka loss or expenses), how much do you owe in federal income taxes? $0. Why? Because your business […]

The Finance Department: Federal Income Taxes (Part 2)

Federal Income Taxes: Schedule C and Quarterly Payments The Finance Department (Part 2) In the US Federal Income Tax system, there are two paths of taxation: personal and business. Most indie publishers operate as sole proprietorships, which fall under personal income taxes (not business or corporate as one might think). Essentially, indie publishers are self employed, […]

The Finance Department: Federal Income Taxes

Federal Income Taxes The Finance Department Taxes are a fact of life. As an indie author, you need to take them seriously, but there’s no need to panic when tax time arrives. If even Einstein thought the income tax was difficult to understand, then obviously the US federal tax code—and the accompanying load of regulations—is […]

The Taxman Interrupteth

We interrupt this mini-series of posts from The Editorial Department to discuss a time sensitive matter: taxes. I can hear your whoops of joy and elation. Everyone loves to talk about federal taxes, right? Sure you do. January 31 is the deadline to send 1099s to contractors. We’ll discuss 1099s now, and the remainder of […]