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Five Freelance Writing Tax Deductions

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     It’s now the month of May, which means you should push April’s tax troubles out of your mind for another 11 months, right? Not if you want to be a financially savvy freelancer. Start keeping track of your deductions now for a fiscally fruitful year. 

     Here are the top five categories of tax deductions related to freelance writing in the US. If you have insight on another country’s laws, email admin[at] popularsoda [dot]com. Check with your tax professional to make sure you’re claiming all appropriate deductions (and avoiding problematic ones).

1. Office Supplies

     What writer doesn’t keep a pen and notebook handy at all times? These expenses are generally tax-deductible. 

Collection of Notebooks

To keep everything kosher, consider buying “work” notebooks separate from “fun” notebooks, then use work notebooks only for writing directly related to work. Outlining plots, planning blog posts, and writing short stories are tasks related to the business of writing. Making grocery lists and keeping track of doctor appointments are not.


2. Tools of the Trade

     Remember when Duotrope went paid and everyone freaked out? Well, it turns out that a Duotrope subscription is actually tax-deductible. Do you use Scrivener to outline your books? That’s deductible, too. You may also be able to deduct your subscriptions to writing and publishing magazines like Writer’s Digest: magazines, journals, and newspapers used solely for business purposes are tax-deductible.

 

3. Professional Memberships

     Memberships to professionals organizations (like the Editorial Freelancers Association or American Copy Editors Society) can be expensive for independent freelancers. However, the cost of these memberships is tax-deductible.
     
     Pick one to three organizations to join. Fewer organizations means you can be more active in your chosen groups, leading to a stronger professional presence and a better return on your (tax-deductible!) investment.

 

4. Classes, Conferences, and Conventions

     These are actually two separate categories, but they often overlap. Expenses related to education that “maintains or improves skills needed in your present work” are deductible. If you’re a traditionally published author looking to take a class on digital publishing, that’s deductible. Similarly, if you’re a writer who wants to take a class on editing, that class should be tax-deductible because it improves your writing work even though editing might technically be a different field.

Conference photo

Breakout session at ACES 2013.

If you join a professional organization and want to go to a writing-related conference, you can deduct some of your expenses. Conference registration fees are almost certainly deductible. Check with your tax professional about travel expenses like hotels and plane tickets. Meal expenses are generally deductible if you are going out with a business associate; meals for yourself are usually not. One quick tip: take pictures of receipts with your phone so you don’t have to worry about holding onto those tiny bits of paper.

5. Self-Publishing Expenses

     If you’re like most self-publishing authors, you pay for your own editing and book covers. If you’re smarter than most self-pubbers, you deduct these expenses from your taxes. Fees associated with maintaining your professional website may also be tax-deductible. Tax deductions shouldn’t be used to justify expensive services out of your price range, but deductions might ease your mind about the cost of (completely necessary) editing and design fees.

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     Keep in mind that the IRS stipulates that these expenses must go toward a legitimate business venture that has a realistic chance of making money. That is, if you pay for the noteboks and conferences and covers but you never actually publish a book, you can’t deduct writing-related business expenses. Just one more reason to stop dreaming and start publishing.

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Do you have insight on another country’s freelancer tax structures? Got another question about freelancer finances? Send us a tweet @popular_soda.

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Three Important Lessons Learned from Freelance Writing

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      When I tell people that I’m a freelance writer, they immediately have a bunch of questions for me. Where do I work? What do I write? What kind of money do I make? Can I get them a job? Everyone (from cab drivers to business owners to drunk tourists) wants to know.

      I see the light in their eyes as they imagine putting words to paper, seeing their books in stores, and receiving praise while the money rolls in. Every time, that bright light turns into careful consideration when I explain the reality of a freelance writing career.

1. It’s not you, it’s them. But it’s on you.

      This is something I didn’t figure out until I began my freelance writing career: your ideas are only half of writing. Whenever you are writing with the intent to publish, you are writing for other people. These mysterious and faceless people determine the success of your work. They must be able to understand your writing.

      Reader comprehension trumps personal expression. Do I hate it when my carefully constructed sentences are deleted or shortened or ripped apart? Of course I do. But I just shrug and move onto the next assignment. It’s nothing personal. 

 

2. Being your own boss means kicking your own ass.

      My income comes entirely from freelance writing and copy editing. I literally cannot afford to take it easy. Sure, there are mornings when I want to lie in bed and watch TV, and days when I want to ditch work and go to the zoo. That’s the worker side of me. The boss side doesn’t allow it.

My boss is like a separate character in my head who tells me what to do. If there are a ton of deadlines coming up, she tells me I need to stay in and work late. An article I really don’t want to write? The Writer can whine and cry and sulk at the keyboard, but the Boss stands over her shoulder with a grim smile and says, “Write.” She’s not mean, though. I do get vacation time and days off, but I have to earn them. Just like time off from any other job.

3. Panning for gold means throwing out a lot of dirt.

      It doesn’t matter what I write: I throw out material every time I create something. If I’m lucky, I’ll just ditch an introduction and a few sentences, then write new material. If I’m having an off day, I end up throwing out more words than I use.

      Right now, I’m writing in WordPad. I put the good material at the top. If I don’t think a paragraph fits here, but it might work somewhere else, I put it at the bottom of the document in a sort of writing graveyard. This article has 378 words in the graveyard, not counting the few paragraphs I scribbled by hand and the sentences deleted forever.

      When I’m writing for myself, I don’t mind a big graveyard: I can work the material into another post. If I’m writing for someone else, it’s time-consuming and counterproductive to have a graveyard bigger than the finished document. However, I have no hesitation about killing off paragraphs. The more you write, the less attached you are to individual sentences.

Ready to be professional about your writing? Grab a free copy of The Weekend Book Marketing Makeover by our friends at Duolit by tweeting about it or signing up for email updates. Toni has graciously allowed PopularSoda to provide an exclusive preview of the book’s contents. Take a look!

Preview from The Weekend Book Marketing Makeover by Duolit

Superheroes and Landmines: How (Not) to Respond to Critiques

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     There are dozens of articles on finding a critique partner and loads of suggestions on how to critique, but there isn’t much information about responding to critiques of your writing. In this post, we’ll outline the most common bad behaviors and personality types of critique receivers and show you how to gracefully handle both compliments and criticism.

The Playground Superhero

     Did you ever pretend to be a superhero when you were little? There always seemed to be one kid who didn’t understand how to play the game. If he picked super strength and you hit him with lightning, he decided he was also invisible. If you tried to freeze him, then he could teleport even when frozen.
     The writing equivalent is an author who apparently already knows his own mistakes, but doesn’t bother to fix them. If you point out an inconsistency in character names, he says it’s just a typo. If you comment on a major plot hole, he says he was going to rewrite that part anyway. If you wonder when the main character got a talking dog, he says he already plans to put something about that in the beginning.
     The playground superhero usually ended up playing by himself. If you copy his bad behaviors with your critique partners, you might end up alone, too.

Avoid Being A Playground Superhero:

  • Fix all mistakes and problem areas before submitting your work for critiquing.
  • Let critiquers know about any major problems before they review (“I know I need to introduce the talking dog in the beginning. Right now, I’m looking for suggestions on making the dog a likable character.”).
  • Say “Thank you!” if someone points out an obvious typo.

The Invisible Author

     This writer is most commonly seen on forums, message boards, and anywhere online where posts can be deleted. The author doesn’t start as invisible. She posts a large text sample for critique and asks for helpful hints. All feedback is welcome! She is really looking forward to improving her writing.
     However, when she actually gets useful suggestions and reasoned criticism, she deletes her post and often vanishes from the forum. She might resurface later, claiming she was driven away by grammar nazis, elitist editors, or trolls. The real reason? She didn’t want concrete criticism, just soft-focus praise.
      Let’s be clear here: there is a difference between abusive messages (“Your writing makes me want to stab my eyes out”) and helpful– yet non-praising– messages (“The imagery in the first paragraph is contradictory and jarring”). Harassment should be reported, and legitimate help should be rewarded.

Avoid Being an Invisible Author:

  • Identify what you really want. It is absolutely okay to simply want praise, but critique circles are not the place for it.
  • Postpone posting your work in a public forum if you don’t feel comfortable opening yourself up to specific, potentially painful feedback.
  • Do not delete your post! Bookmark it and come back in a few months (or few years) to see if maybe those trolls were right.

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Why You Should Pay for Duotrope (and How You Can Win a Subscription!)

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      If you haven’t heard the news, Duotrope, a popular site for tracking literary submissions, is moving to a paid model in January. Under the new pay structure, you can buy a year-long membership for $50, or purchase individual months at $5 each.

      Naturally, people were not pleased with the news. Who wants to pay for something if you’ve gotten it for free for years? Unfortunately, the numbers don’t lie and Duotrope can no longer survive on donations alone. Duotrope must start charging for membership, or it will disappear entirely.

      It’s not all bad news, though. There are good reasons to pay for Duotrope, and the new model might actually benefit you.

The Price

      First, let’s take a look at the price. Once the sticker shock fades away, you’re left with the hard numbers. You can pay $5 a month, or $50 a year, which works out to $4.17 per month.

      That’s less than the price of a large frappucino, and unlike the frappucino, you can enjoy a Duotrope membership for more than fifteen minutes. Put another way: if you saved a quarter during each weekday in 2013, you would be able to pay for a year’s membership and 1/3 of next year’s membership.

      Fifty dollars a year breaks down to fourteen cents a day. Though there are people who cannot afford that, it is well within the reach of many aspiring authors. The new price model also allows for gift subscriptions, which means friends and family can help support your writing (without writing those suspicious-sounding reviews). 

The Statistics

      Some writers are concerned that Duotrope’s statistics will become less useful when the data pool shrinks. Duotrope itself addressed these concerns, and they expect their statistics to become more accurate. It turns out that the people who submit frequent, valid reports are also likely to be donators to and active users of the site.
      Though the number of total Duotrope users will drop, Duotrope will retain the most helpful contributors. This isn’t an unfounded assumption: by tracking membership pre-orders, Duotrope has already accounted for 51,000 submission reports and seen a decrease of 92% in unreliable data.

      Unlike scientific studies where a bigger sample size is almost always better, reliable data is the heart of Duotrope. To an extent, there are right and wrong answers. Claiming a one-day wait before reporting a submission as “never responded” is not helpful for anyone. The new subscription model discourages erroneous reporting from single-submission users.

Your Writing Career

      We’ve said before: if you want to make money from your writing, you have to treat it like a business. Duotrope now joins the ranks of Scrivener, writing magazine subscriptions, nice pens, and notebooks as useful writer tools. You certainly don’t need any fancy extras to be a writer, but these tools increase your productivity and open your eyes to new markets.

      The new membership structure could gel well with your personal style. Month-to-month memberships can light a fire under procrastinators. If you know you only have a week left to use the site, you might enjoy scrambling to submit before the deadline. If you’re hesitant to pay for the service, that might work in your favor, too. You might end up submitting more stories to justify the price and feel like you got your money’s worth.

      Whether submitting under deadline or submitting due to buyer’s remorse, increased queries in targeted markets can only help your writing career.

      You might examine all the angles and still decide that Duotrope isn’t right for you. That’s fine, too. We’re not demanding that every writer must get a subscription. We’re just asking you to consider things besides cost.

Do you want to win a six-month subscription to Duotrope?

Share this post, then comment below explaining how you would use your subscription, why you would like the subscription, or how Duotrope has helped you in the past. Be sure to use the same name for both the share and the comment. The contest will run until January 10th, 2013. A random winner will be selected from all valid entries and the winner will be notified by January 15th, 2013. This is a PopularSoda contest and not affiliated with Duotrope.

Ebook Basics Class Handouts

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      Last weekend, Lila went out into the “real” world to educate the public about ebooks at the OCH Art Market. If you couldn’t make it to New Orleans for the class, don’t worry! Here are the class handouts for you to download and share. 

Editors and Designers

Payment FAQ

Why Self Publishing

Got more ebook questions? Ask us on Twitter @popular_soda or email admin@popularsoda.com 

Why You Need to Trash More Writing (and How NaNoWriMo Can Help)

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This is an opinion piece by Lila Moore, founder of PopularSoda.com


      I’ve said before that if you want to make money writing, you have to treat it like a business. Let’s add something else to that:

      If you want to perfect your writing as an art form, treat it like art.

      That looks pretty, but what does it actually mean?

      It means you need to write things and then throw them out. A lot of them. And often.

      In writing communities, I often see writers post snippets and bits of stories, wondering if it’s worth finishing or if it was even a good idea in the first place. It’s always worth finishing. It’s not always worth publishing. Voluntarily and creatively writing will strengthen your ability.

      You can learn from everything you write, even if you never show it to anyone else. I wrote a novel when I was thirteen and promptly lost it in a computer crash. But I learned. I found that I had the drive to complete a full-length manuscript, and I realized that you should never keep all your writing in one place. During a train ride from Boston to NYC, I wrote a quick (and admittedly terrible) story about vampires versus aliens. The story was a joke, but I learned that I could pump out a lot of words on a deadline. I write poems to my friend in Japan that follow the rhyme scheme of a certain pop song. The limited structure forces me to be creative in a way that free verse does not.

      I have hundreds of half-songs and paragraphs and little ideas and I learn from all of them (even if I’m learning what NOT to do).

      There seems to be such a focus on making things perfect for publication. Publication may be the goal, but you aren’t going to get there without a strong skill set. You improve your writing through practice.  Not every painting is a well-publicized masterpiece, not every song makes it onto the final album, and not every scene is saved from the cutting room floor. And like ice skaters falling on their bums and skateboarders wiping out, you’re going to make mistakes, but that’s okay.

      You’re just writing. Not publishing. 

      One of my favorite musical artists, Tori Amos, calls the process “noodling around”. She’ll sit at her piano and play without actively working on a defined song. Other musicians call it jamming. Visual artists doodle in notebooks. What’s the equivalent for writers?

      Do you noodle? Do you riff? Do you word-vomit? Do you bleed? Do you spit straight truth from the top of the dome?

      I write a lot of things just to play with words. I write a lot of things already knowing I won’t develop them further than a paragraph or a half-finished poem. If I’m writing an important scene, I write it more than once. I feel most comfortable when I write it once by hand, once on the computer, and then type up my hand-written notes, self-editing as I go, melding the versions into one, and deleting everything that doesn’t fit. Time-consuming? Most definitely, but we’re talking about writing as an art.

      Artists don’t suddenly appear. They work. The aforementioned Tori Amos started “noodling around” on piano when she was two, received a scholarship to the Peabody Conservatory at five, got kicked out at 11, played bars at 13, failed with her first band at 25, and finally found commercial success at 27– 25 years after she started playing. Michaelangelo painted the Sistine Chapel when he was only 33 years old, but his artist apprenticeship started when he was 13– twenty years before. He completed the Pietà at 24 years old, only 11 short years after he started working full-time as an artist.

      Malcolm Gladwell talks about the 10,000 hour rule: you must do something for ten thousand hours before you achieve expertise in the field. From the Beatles to Bill Gates, he presents a compelling case in his book, Outliers. In writing, some swear by a million word rule: you need to write a million words before you pen your best works.

      And that brings us back to NaNoWriMo. Fifty thousand words in a month is a great start. So write those words. Write more than the amount you need. Write everything that’s in your head. Write scenes that don’t fit and exposition that’s too long and conversations that are unrealistic. Write boring characters and major plot holes and top it off with a deus ex machina. Write  three novels’ worth of material and then gleefully turn your back on most of it.

      Because you have to. This is the practice before perfection.

Money Flows Toward the Writer? Not in Ebook Territory

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     If you’ve participated in any writing communities in the past decade, you’ve probably heard this saying: Money flows toward the writer. Once upon a time, this was nearly undeniably true. But in the ebook and self-publishing landscape, writers often have to spend money to make books.

      In traditional publishing, the saying still holds some merit. No writer should pay a publishing company upfront for basic publisher duties like editing, evaluating, reviewing, or reading the manuscript. And no writer should ever pay an agent upfront. Beyond that, though, things get murky. Certain publishers will want you to pay in order to have your book printed. This is called vanity publishing, and in some cases, it’s perfectly fine. If you need souvenirs for a family reunion, frat or sorority handbooks, or a few dozen books for a family business, vanity publishing might be your best bet. However, alarm bells should go offin your head if a vanity publisher promises to get your book in major stores for a fee of a few thousand dollars. It might be technically true, but it’s not going to happen the way you envision.  In the ebook world, most writers have to spend something in order to get a quality product. Whether it’s spending time learning to use Photoshop or a few hundred dollars for a freelance editor, these independent ebook services can be totally legit– and incredibly helpful. 

   If you already have some Photoshop experience, you may be able to make your own cover. If you don’t have the experience, and you’re not able to learn, paying for a cover will be your best option. Some ebook cover artists charge hundreds of dollars for a single cover. Others will charge rock-bottom prices and hope to make a profit through volume of sales. Many artists can make great covers. The trick is finding a skilled, dependable designer who is willing to work with you to make your vision a reality.

      Editing is the necessary evil of writing. Friends and family are often too forgiving or too inexperienced to point out the mistakes of a loved one’s draft. More and more writers are turning to freelance editors, both copy and developmental.

      Freelance editing is a business. It’s a profession. It’s not personal. Your feelings will probably get hurt. But with great editing, that short-term pain will lead to long-term gain in the form of more engaging storytelling. With mediocre editing, the process will lead to a bunch of headaches when astute readers point out basic or not-so-basic flaws in your ebook. And with terrible editing, the misguided editor might introduce errors, fail to correct major errors, forget to edit the story at all, or attempt to take control as if she were now the legal guardian of the ebook and not just a babysitter.

   In any case, vetting freelance designers, editors, and marketers is absolutely crucial. All freelance professionals should be able to offer you a personal history, references, examples of previous work, current contact information, pricing information and a clear timeline of the process.

      If any freelancer refuses to give a straight answer or can’t substantiate previous work claims, move on. Though it’s typical to get an estimate for a project and not an exact dollar figure, be extremely wary of any “professionals” who cannot give an hourly rate, a per-page rate, or a per-project rate. Also, be cautious of freelancers who oversell their services. No one can guarantee sales or fans.

      There are tons of amazing and experienced freelancers ready and willing to work with you on your ebook. Using the services of an outside professional can help you get a polished product ready for selling and downloading.

      ((One caveat: if you’re soliciting the expertise of a freelance editor, designer, or marketer, don’t offer to pay with the royalties from the future ebook or the opportunity to “get your name out there”. It’s simply unprofessional. In the same way that actors, camera operators, and prop directors get paid even if a movie tanks at the box office, your support team should be paid whether or not your book is a success. You’re the publisher now. And you can’t get all the reward if you don’t take some of the risks.))

Want to recommend your editor, designer, or marketer? Leave a comment with a link!