If you are a beginner writer you may not think about taxes yet.
Don’t forget to keep track of all your expenses as well as your income.
At first you’ll most likely spend more than you make, at least I did. Even trying to not spend any money on writing, I still did. I entered contests, I bought my book proofs and I downloaded a few helper programs.
It all counts in your favor. Office supplies, office space, internet or paying an editor. Whatever it is that you have spent on your craft, keep a record. And it’s much easier to have a handy notebook, or computer file, and track it as you go. The last thing you want is a years worth of money spent and the only way to find it is by shifting through credit card receipts.
Of course track what you make too, even if your not yet rolling in the dough. Be up front, be prepared. You never know you just may not have to pay out as much at the end of the year … or better still …get money back.