Tax Breaks for Writers

Freelancers can take a loss and still get tax money back, according to an article I read on the Institute for Children's Lit website (published 2004). Some interesting points:

1. Even if you haven't made money yet, you can claim deductions if you've been working hard to make a profit by putting in time (500+ hours per year), writing & submitting, networking, etc. - and have proof to back yourself up, like rejection emails or letters (yep, gotta keep those), a business plan, and submission logs.

2. You can deduct:

• submissions expenses
• research expenses like gas and meals with interviwees
• writing contest fees (if money or prestige is the prize offered)
• reference materials
• continuing ed

3. You can get back $1000 or more. (Okay, that wasn't in the article. But it is on my 2009 tax form) :)