[Learnmegood]

I've been using a pretty good guy for the past couple of years, but he really has no knowledge of how book royalties fit into the tax scheme.  I'd feel more secure with someone who has done work for authors before.

Any help is appreciated in advance!

 

[AndreSanThomas]

Well, if it helps any, if you're self-publishing, they aren't actually "royalties".  That's the word Amazon uses, but real royalties are a passive income sort of thing.  What you're doing is running a small business, selling a product.  It happens to be books.  Your delivery mechanism (Amazon) takes a cut for their distribution and you receive the rest, just like if you were selling light up Halloween socks or something.

So, what I'd suggest you really need is someone who understands a self-employed small business.

 

[Learnmegood]

You're right, and that's what I mean.  My guy didn't know what to tell me about making sure I covered myself for the "royalties" I was making early last year.  I need someone who understands that sort of thing.

 

[Gertie Kindle]

I go to H&R Block and they have no problem understanding what needs to be done.

 

[48209]

Hmmm... the person I talked to told me to just do a Schedule C-EZ.

Anyone know of a good site/blog/book/online class for taxes? Trustworthy and easy to understand is good.

 

[Al Dente]

Thankfully, my wife has been able to take care of our taxes since we started freelancing a few years ago. I'm pretty sure Amazon sends out the same form that we get from the brokers who give us most of our freelance work. She's also able to figure in our few private clients. I'm glad I married someone smarter than me.  

I guess the only advice I have is to have a wife who's good with numbers.

 

[Guest]

Looking in Dallas?

Be sure that who you get understands the difference between oil royalties and book royalties.

 

[Ann in Arlington]

Suggest you check out a professional organization like National Association of Enrolled Agents (www.naea.org) or the National Association of Tax Professionals (www.natptax.com).  Either organization will have members in your area -- listed on the web site should have information about members' specialties.

H&R Block folks can do a good job -- be sure to let them know up front that you will probably need a Schedule C, that you have expenses that may include travel or transportation, and you need someone who can handle that level of complexity. 

If you make a significant amount, you might want to look for someone who can advise you, as well, as to whether the Sole Proprietorship is the best way to run your business. 

Disclaimer: I am an Enrolled Agent and a Master Tax Advisor with H&R Block.

 

[LilianaHart]

I have a CFA and a CPA in the area. Both are fantastic and know how to deal with writers.

Try Charles Sizemore at Sizemore Capital. http://charlessizemore.com/about/ His office is just off Walnut Hill in Dallas, and he knows what he's doing. He's a CFA and he's also an author. Also, my accountant is different than my CFA, though they do conference call when it's tax time to get everything in order. My accountant has set up my business and takes care of my quarterly payments and making sure my assistant gets paid and all the complicated things that having an employee entails. Chris Green is her name and she's out of Fort Worth. She's also familiar with how royalties work and the writing business. chrisgreencpa.com