Maximize your Money: 19 Little-known Tax Deductions for Wordsmiths
You know all that money you invested in your writing last year? Now's the time to claim those expenses!
When I was younger, I lacked self-awareness. I didn’t even know I had an ADHD brain. One consequence was that I was pretty flaky about filing taxes. Some years I did. Some I didn’t. I figured I’d get around to it someday, maybe, when I had the money.
In 2010, I realized it was time to clean up my mess. I had less than $200 to my name and no idea how I’d ever pay off…however much I owed. For years, I’d been too scared and ashamed to even think about it.
I spent months digging and searching for every receipt I could find, and it became a game for me: “Spot the Deduction.” I felt like a detective, and it began to feel like a game. (Yes, a game where I owed a lot of money at the end… but a game, nonetheless.)
Over the years, I’ve actually come to enjoy gathering my receipts and preparing my spreadsheet. Because I’m a dual Canadian-American citizen, I have to file in both countries. I’m incapable of filling out the 90+ pages of forms for each country, so I hand that off to a professional.
I’ve learned a few things along the way, so I thought I’d share these tips.
Before we begin…
I am not a tax professional. Always consult with a Chartered/Certified Professional Accountant before claiming deductions. Tax laws are nuanced and can change frequently; even more confusing is that each state and province or territory has their own tax laws. Wherever I write “you can deduct,” please know there’s a “probably” implied there.
My apologies to anyone outside the United States and Canada; I don’t know anything about other countries’ tax laws or processes.
If you are a full-time employee, these deductions may not apply to you. Ask a tax professional to make sure.
I file as a self-employed individual, because if I incorporated, the IRS would tax me as an off-shore corporation. I’m not kidding. That means my advice is best suited to people who file as individuals or sole proprietors. If you are incorporated, make sure you consult a CPA.
Becoming a detective
I recommend checking the following to hunt down deductions:
Printed receipts
Digital receipts (email)
Credit card statements
PayPal
Bank statements
ApplePay, GooglePay, or any tech “pay” service statements
Amazon orders
Here are some of the deductions that writers and editors of all stripes can claim:
1. Business use of home
In both Canada and the US, in order to claim this deduction, you must have an office in a room with a door. It can be a closet, as long as it’s a separate room and only used for your business. The deduction a percentage of the whole, based on the floor plan. For example, my office is a bedroom that takes up 20% of my full apartment space, so I can deduct 20% of my rent and utilities.
2. Office furniture
Again, this applies only if you have a dedicated office. If you need a new desk or chair, a standing lamp, a bookshelf or any other office- or work-necessary furniture, you can claim it as a capital expense. You likely won't be able to deduct the full amount in the same year you buy the furniture, but you will be able to deduct decreasing amounts from the purchase over a span of years.
Cat trees do not count as office furniture, even if you have one in your office. Nor, alas, can you deduct cat food as “business meals.”
3. Technology hardware
This includes computers, tablets, film or video equipment, smartphones, printer, scanner, podcast equipment etc. Any technology that is necessary for you to function in your business as a writer. If you create videos, you can deduct the cost of a video camera (specifically for your work); if you’re a podcaster or are planning to be interviewed, deduct your mic and pre-amp.
As with business use of home, you may not be able to deduct 100% of the cost in the year you made the purchase, but you will be able to deduct a percentage of the cost for several years.
4. Website hosting, design and maintenance
Most writers have at least one website, and many of us have multiple sites. You can deduct the costs of domain registration/renewal, hosting, website design, plugins and support, like a VA who updates your plugins and checks your links.
5. Software (one-time license or subscription-based)
Do you use MailChimp to reach your readers? If you have more than 2,000 subscribers (or want premium features), it’ll cost you—but you can deduct it come April. The same is true for Microsoft Office, Canva Pro, Adobe products, plugins for your website, password managers, scheduling software (if you’re also a podcaster or editor), Zoom, etc. If you use an app on your phone to write notes on the go, that’s deductible, too. Thesaurus apps? Yup, those, too (I have several).
6. Office supplies
This one probably isn’t a big surprise. Do you use a dry-erase calendar to help keep track of deadlines? Deductible. Pens and notebooks? Deductible. Post-its to help you figure out your structure? Mouse pad? Corkboard? All deductible.
7. Research
Nearly any book (or magazine) you purchase may be deductible, because as a writer, part of your job is reading and analyzing other people’s books (and being a good literary citizen by telling them how much you loved their book). If you write nonfiction, as I do, you may buy (and deduct) books in your subject area. Those who write genre fiction may also need certain books for world-building or accuracy, e.g., a book on medieval drinks
Hard-copy magazines related to your writing are also deductible, as are book-related items you buy during the research phase. That sounds super-vague because it is; this category differs among writers, depending on our streams or beats.
8. Contest entry fees
This one is self-explanatory. Go enter contests! It’s a great way to hone your writing skills.
9. Editing, cover design and other book-related services
Are you working on a book? Both CRA and the IRS consider books to be revenue streams; therefore, as an investment in your future revenue stream, you can deduct professional expenses related to the creation, production and marketing of them.
Editing (including manuscript evaluations and professional betas), writer coaching and publicists should be tax deductions for almost everyone (but check with a tax preparer in your location). If you work with me, you can likely deduct what you pay me. Now those fees are looking like tax-savers, aren’t they?
Self-published authors can save a lot with this deduction. Book cover design. Interior layout. Copywriting. Stock photos or illustrations. ISBN number. Amazon A1 descriptions. All of it is deductible.
10. Media subscriptions
What newsletters do you pay to subscribe to? What about hard-copy or digital magazine or newspaper subscriptions? From Writers Digest to the New York Times, if it relates to your writing work, it’s deductible. If you’re a freelance writer and you belong to Mediabistro, those fees are deductible, too.
This includes paid subscriptions to writing-related Substacks! I don’t plan to put content behind a paywall (ever), but I welcome pledges/paid subscriptions that allow me to spend more time writing
11. Tax preparation, legal and bookkeeping fees
If professional services are essential to your business, you can deduct them. This includes (but isn’t limited to) professional tax preparation, legal and accounting fees, among others.
12. Professional development
Any writing- or publishing-related class or course you take is a deduction. There are so many great classes and courses out there! Take advantage of whatever free webinars you can, but—if you have the cash on hand—don’t be afraid to spend on a really good course.
13. Conference costs
Writing conferences can be pricey, yet they can also save you a lot on taxes, because you can deduct not only the cost of the writing conference, but also your travel, accommodations and some percentage of food, especially if you treat others to meals.
Other people’s book merch is not deductible. Sorry.
14, 15 and 16. Business travel and meals
Just as travel to conferences is deductible, so is travel for speaking gigs (if that’s not included in your fee) and necessary on-the-ground research. The key word here is “necessary,” and that’s a bugaboo. If you can find the information on the internet, travel is not considered necessary. If you can Zoom or have a phone call with someone for research, that’s not considered necessary. Today, less and less research travel is considered necessary.
If you’re meeting mentors, editors, agents, etc. in person and footing the bill, you can deduct some of that. You can’t deduct your own meals, unfortunately. And if you want to give your book team a thank-you gift, you can deduct that cost. too.
17. Book merch
Indie authors are amazing at coming up with book merch. Whether you put your book brand on conventional items (t-shirts, tote bags, custom pens) or unusual ones (dog toys, anyone?), whatever you have custom printed, you can deduct those costs.
18. Memberships in professional organizations
Are you a member of The Authors Guild or The Writers Union of Canada? As long as the group is related to your writing, the dues are deductible.
19. Advertising/Marketing/Publicity
Did you run ads on Facebook, Google or any other digital, audio or print media? Deduct those costs. If you hired a publicist, you’re probably far enough along that you know you can deduct that expense, too.
And one added expense
Americans have a self-employment tax, which is basically the money an employer would usually deduct from your pay to cover Social Security and Medicare.
In Canada, self-employed people have to pay both the employer and employee sides of their Canada Pension Plan contribution. That can add up to $6,999 on your tax bill (2024). The good news is that 50% of that is also deductible. (I know, it’s weird, and I don’t get it either.)
The bottom line
Learning what deductions I can take helped me to save about $7,000 CAD on this year’s income tax.
If I’ve missed any deductions, please share in the comments.
Best of luck!
Thanks for the tips! There are several here that I've missed completely.