Can You Write Off Editor Expenses On Your Taxes?

For many authors, especially those who are still getting established or who have decided to self-publish, there are a lot of up-front expenses. While the dream of holding your very first book copy in your hands and attending your first book signings is well worth the time, money, and energy spent, some authors simply don’t have the money to invest in a quality editor.

Unfortunately, many more aren’t aware that the full cost of hiring an editor is likely a tax write-off, in addition to many other types of publishing expenses. Below is some information that is likely to help new authors save money on their next book. If you’d like some extra guidance, see our contact information below, and we’ll try and steer you in the right direction.

Do You Need to Hire an Editor?

In most cases, yes. Even the most well-known authors throughout history have hired an editor or have had one hired on their behalf. While you may feel confident in your story and your ability to catch plot holes, lacking character development or spelling and grammar errors, hiring a professional editor is the most effective measure you can take to make sure you keep your readers’ attention and generate positive reviews.

This is especially true if you’re self-publishing or working with an independent publisher because, in most cases, the self-publishing service or indie publisher is not going to provide you with any editorial help, apart from (maybe) formatting. Even if you are going with a traditional publisher, you’ll want to make sure your manuscript is as clean as possible before submitting it because the publisher (and literary agent, if you’ve hired one) are investing A LOT of money into your book, and if they see too many errors in the manuscript, they’re going to look at it as a bad investment.

How Much Does an Editor Cost?

It depends—mostly on word count and your ability as a writer. For example, our editors at UnTapped recently provided a full-service edit to a children's book for $40. While there was about an average number of errors to address, the word count was less than 1,000, so the edit was fairly quick.

However, in cases where the word count is substantial and there are a lot of errors, we may quote the author between $1,000 and $12,000 (the most we’ve ever charged), depending on the type of editorial services needed (developmental, copyediting, line editing, proofreading, or all of the above), and the required deadline. While that may seem like a lot, the book writing business is just like any other business—the more you invest in your product, the more money you’re likely to make off of it. And while your quote may seem like a lot of money to put forward, our editors understand the precarious financial situation that many authors find themselves in. How? Because many of us have worked as writers or authors ourselves! This is why we always offer the option to pay in installments—possibly as little as $20 a month.

What Expenses Can You Write Off as an Author?

In addition to the manageable rates and payment plans that our editors offer, authors are also eligible to write off the total cost of their editing expenses (and many other types of publishing expenses) if they pay for them themselves, and they intend to make a profit. Here are just a few of the many expenses you may be able to write off as an author:

• Editing Expenses: Anything you pay to your editor can be written off, including rates and consulting fees.

• Marketing Expenses: One of the most important steps in ensuring your book lands in the hands of as many readers as possible is hiring a marketing firm. The cost involved is usually considered a write-off if it’s not covered by your publisher.

• Cover Design: They say that you should never judge a book by its cover, but unfortunately, many readers do. Should you decide to invest heavily in a graphic designer for your cover, this is typically covered by a tax write-off.

• Literary Agents: Most literary agents only charge a percentage of the total sales. However, the percentage that you do pay is usually tax-deductible.

• Legal and Accounting Services: Not only are you usually allowed to deduct the expenses involved with publishing your book, but the cost of hiring a professional to help you determine which expenses are deductible is itself deductible if you meet the eligibility requirements.

• Research: For many authors (especially non-fiction authors), the cost of research is the most expensive aspect of writing a book. The good news is that certain research costs are tax-deductible, including buying books, paying for access to research papers, hiring a consultant or expert in your field, and a portion of your transportation, lodging, and food expenses if travel is required during the research for your book.

• Home Office Expenses: If a home office is essential to your process (and for many writers, it absolutely is), you can write off a portion or all of these expenses in your taxes. This may include a portion of your rent, cell phone bill, internet, and utilities, as well as your laptop, office supplies, and even your desk, office chair, or bookshelves.

What Expenses Can You Not Write Off?

Not all authors are eligible to write off publishing expenses, and some expenses are simply not legal to deduct. For example, traditional publishers typically provide in-house editors, marketers, and cover design artists. If you didn’t pay for these services yourself, you can’t write them off on your taxes. The same goes for authors who are only writing for fun and only plan to give away their book for free. Here are some typical author expenses that are not usually tax-deductible:

• Hobby Clubs: If you pay a fee to a writer’s club that is strictly for fun and there are no opportunities to self-promote, market, network, or seek editing help, you can’t deduct the cost of any membership fees associated with the club. However, you can deduct membership fees if it’s a professional club, such as a writer’s guild, or if it’s a club or workshop designed to better your skills as a writer.

• Fines or Penalties: If you receive a fine or penalty, such as a penalty from the IRS for not filing, you are not allowed to deduct the cost from your taxes. If you’re unsure how to properly file your taxes as a writer, hire an accountant! You can deduct the cost!

• Entertainment: There can be a fine line between a business lunch with your literary agent and a non-essential lunch between you and your friends. While some things like travel expenses, food, movies, or books can be deducted under the right circumstances, they need to be strictly business-related and essential to the development or promotion of your book.

How To Write Publishing Expenses Off

While we aren’t tax professionals and we can’t provide you with tax advice, there are general guidelines most authors will need to follow if you want to write off your taxes as an author. Here are the typical steps you’ll need to follow, but keep in mind, these may or may not pertain to you. If in doubt, hire an accountant:

1. Think of your book as a business. Yes, you’re a human author, but for tax purposes, you’ll need to file as a business. Of course, you may not be allowed to do so depending on certain factors, but if you make an income off of your book (even a small one) you’ll likely need to file a 1040 or similar form.

2. Save evidence of all expenses. If it was essential to producing your book and you paid for it, save the receipt.

3. Fill out the form and check it several times. Make sure you the figures are accurate and honestly represented.

4. When in doubt, hire a professional. You can usually deduct the cost of doing so.

Looking for a Budget-Friendly Editor?

While deducting your expenses from your taxes can reduce the financial stress of writing, promoting, and publishing a book, you’ll still have to wait until tax season before you’ll be able to benefit from doing so. Unfortunately, for many authors, they simply don’t have the money to pay these expenses upfront, and it’s not unreasonable for them to look for cost-efficient editors to help maintain their budget.

But it’s important to also remember that hiring a budget-friendly editor is not the same as hiring a cheap editor. The difference? One will offer quality service and the opportunity to pay as you go or finance the costs over a longer period of time. The other will deliver sloppy, time-consuming, unprofessional work and end up costing you even more money in the long run when readers or publishers are deterred from picking up your error-infested manuscript.

We understand that the cost of an editor is likely the largest expense you’ll face as an author. But we also believe that you shouldn't be limited to paying for subpar editing just because your budget is a little tight. We offer payment plans to all authors, no questions asked. Tell us how much you can pay per month and we’ll work something out. We will also never ask you to pay for an initial consultation or assessment, or anything else, unless you explicitly agree to do so beforehand. Lastly, we offer free proofreading to all of our clients as well as opportunities to promote your book free of charge. Ready to get started? See the contact information below and give us a call today!