Here is part 2 of my Taxes for Writers section, reblogged for those who may not have seen it last year.
In my last bit on taxes, I went into what I’ve learned as far as tax deductions. Now comes the less fun parts.
Writers, God(s) help us, are considered self employed. This has a number of effects upon the money we earn and the taxes we have to pay. As far as the US tax system and the IRS, being self employed puts most of the burden upon the writer.
There’s three types of tax that all US Citizens pay. There’s Social Security, Medicare, and then income tax. Normally, you only have to pay a net 7.65 percent of your income to social security and medicare. The problem is, your employer is paying the other 7.65 percent. As a writer, your employer is you (regardless of whether you publish with a big company or not, they push the onus of paying that to you), so you have to pay all…
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