Write Now, Plan Ahead: Taxes, Deductions & Your Author Future
Let’s talk about something that doesn’t involve plot twists, character arcs, or sexy banter, but is just as essential to your author career: taxes and planning for your financial future.
We pour so much of ourselves into our books—our time, our energy, our creativity—and if we’re treating our writing like a business, then we have to run it like a business. That includes understanding what we can deduct on our taxes and thinking ahead to what our lives will look like beyond the next launch or royalty statement.
Let’s Start with Deductions
As authors, we’re eligible for a surprising number of tax deductions. Can I point out that I’m not an accountant or tax attorney -and that you should check with yours before you take any action. But, also, this information is freely available on the internet. Did you pay for editing, cover design, ads, formatting, ISBNs, or website hosting? Those are business expenses. Travel to a writing conference or retreat? That might be deductible, too. Even software like Scrivener, Canva, or your Zoom subscription can often count if they’re used for your writing business.
The key is keeping good records—receipts, mileage logs, and a clean list of income and expenses. Whether you use a spreadsheet or an app like Quickbooks, your future self (and your accountant) will thank you.
But while tax time is a great moment to look back, it’s also the perfect time to look forward.
Writing is Beautiful. But One Day We Will Put the Pen Down.
There will come a time when you might not want to—or be able to—write full-time. So what’s your plan?
It’s never too early (or too late) to think about retirement planning. As a creative, our income fluctuates or feels unpredictable. Planning might seem daunting, but you can start small.
You can set up a savings account just for long-term goals.
You can look into IRAs, Solo 401(k)s, or SEP IRAs if you’re self-employed.
You can even talk to a financial advisor about how to invest your royalties or set up automatic transfers after every book launch.
Your books are intellectual property. That means they have value—and you can potentially sell or license them down the line. For film, for translation, for audio, for foreign markets. Some authors even plan to sell their backlist as an asset. Your words are your legacy, but they can also be a source of income beyond your writing years.
The Big Picture
Think about what your author life looks like not just this year, but ten, twenty, thirty years from now. Are you building something sustainable? Are you taking care of future you?
Writing is a calling, but it’s also a career. You deserve to thrive now and later.
So as you gather those receipts and file those taxes, take a moment to ask:
What am I doing to secure my future as an author?
Your creativity is priceless. Let’s make sure your future reflects that.