Writer income vs. royalties:
Get organized this tax season

Whether you are a freelance writer or published author, it is your responsibility to differenciate between writer income vs. royalties. This can be an exhausting task if you receive both types of income but neglect to get organized from the get go.

It is important that you keep records of your income and expenses, this includes copies of receipts and payment stubs. You also need to either create a database that incorporates all this information in an organized fashion, or invest in specialized software.

Tax requirements are ever changing and there are many aspects that determine them for a writer; specifically the type of writing you are commissioned to perform. Tax for an author receiving royalties differs from a freelance writer performing contract work for a business. How they differ and in what capacities are both important because the answer results in the percentage of tax that you are expected to pay. The best way to ensure that you are meeting your tax requirements is to contact your local IRS office.

Mama shares more information on writer income vs. royalties

Further reading about taxes for writers

Writer's Essential Desk Reference: A Companion to Writer's Market by Writer's Digest, Glenda Tennant Neff, Roseann S. Biederman presents the writing business including tax laws, grant applications, book contracts and self-publishing.

Writer's Legal Companion: The Complete Handbook for the Working Writer, Vol. 3 by Brad Bunnin, Peter Beren, features chapters on Tax and the Freelance Writer and Legal Resources for the Writer.

Writer's Digest Weekly Planner by Writer's Digest Books is a great tool to get your organized. Not only will it hep you plan your writers life, but it include great information. Its contents include; Business Basics: Taxes, Rights & Fair Use and Expense Tracker/Earnings Tracker.

Websites with useful tools and resources on writer income vs. royalties

Please note that these Mamashares has not endorsed these sites as resources for legal advice. You should always contact your local IRS office for up to date tax requirements for your status.

CCH specializes in tax and business law information and software solutions and is currently offering its revised edition of CCH Tax Guide for Journalists. This guide is free and was specifically created for journalists, including freelance writers.

Riley & Associates, P.C. offers expense and income worksheets that can help you get organized.

Louisiana State University's E. J. Ourso College of Business features an interesting article by D. Larry Crumbley, Ph.D, CPA, Cr.FA, CFFA, FCPA, titled Tax Aspects of Authors/Writers/Screenwriters. The article is not current, so you should check with your local IRS department regarding the specifics, however, the article does give helpful information on writing income, types of expenses, and copyright fees.

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