If you’re self-publishing, taxes can seem like a tricky maze. It’s common to feel unsure about how to handle income reporting or which forms to fill out. Don’t worry — by understanding a few key points, you can make tax season a lot less stressful.
Keep reading, and you’ll discover simple steps to report your earnings, deduct expenses, and stay on top of your tax obligations. I’ll walk you through the essentials so you can focus more on your writing and less on the paperwork.
In this guide, you’ll find straightforward advice on tax forms, record keeping, and what to do if you sell ebooks or skip getting a Tax ID. Let’s get started on making your self-publishing journey both creative and tax-smart.
Key Takeaways
- Report all your self-publishing income on Schedule C, including earnings from platforms and sales. Keep detailed records of sales reports, receipts, and bank deposits to avoid penalties or audits.
- Use IRS forms like Schedule C and Schedule SE to declare income and calculate self-employment taxes. Platforms may issue 1099 forms if earnings exceed $600, but you must report all income regardless.
- Claim expenses such as editing, cover design, marketing, website costs, and a portion of your home bills to lower your taxable income. Keep receipts and separate business expenses from personal ones for easy tracking.
- Maintain organized records of expenses, using apps or spreadsheets to document purchases, mileage, and payments. Regular updates prevent stress during tax season and support deduction claims.
- Self-employment taxes are roughly 15.3% and apply when earnings surpass $600. Set aside part of your income or make quarterly estimated payments to stay ahead of taxes owed.
- Pay estimated self-employment taxes quarterly via IRS Form 1040-ES, typically in April, June, September, and January. Monitor your income to avoid penalties or large bills at tax time.
- Report ebook income and royalties on your tax return, using Schedule E if needed. Keep sales statements organized and remember that royalties are subject to self-employment taxes.
- Apply for a Tax ID (EIN) early to appear professional, simplify tax filing, and protect your personal info. Many platforms require it if your earnings are high or you hire freelancers.
- If you don’t have a Tax ID when selling on platforms, you risk withholding or account issues. Getting an EIN upfront helps ensure smooth reporting and keeps your business compliant.
1. How to Report Income as a Self-Publishing Author
Reporting your income correctly as a self-published author is crucial to stay on the right side of the IRS and avoid penalties. Generally, you’ll file as a sole proprietor, which means reporting your earnings on Schedule C (Form 1040). This form helps you detail your income from book sales, royalties, and other related revenue.
Keep in mind that all income received from platforms like Amazon Kindle Direct Publishing, Smashwords, or sales on your website counts. Even if the total is small, you still need to report it. For example, if you earned $3,000 from ebook sales in a year, that amount must be included in your tax return.
To make sure everything adds up, maintain a record of every commercial transaction, including screenshots of sales reports, payment receipts, and bank deposits. Not only does this help when filing taxes, but it also prepares you for audit time. Remember, hiding income can cause serious trouble, so honesty is the best policy.
You should also be aware that your self-publishing income is considered self-employment income, which means you’ll need to pay self-employment taxes in addition to income tax. This is roughly 15.3%, covering Social Security and Medicare, and applies if your earnings go above the IRS threshold—currently set at $600 for 2025 (source).
2. Which Tax Forms You Need for Self-Publishing Income
Self-published authors need to file specific tax forms depending on their income level and business structure. The main form is IRS Schedule C (Profit or Loss from Business), attached to Form 1040, which reports your income and deducts expenses. This form is essential for showing your net profit or loss from writing and publishing activities.
If your earnings from self-publishing exceed $600 in a year, the platforms you’re using will typically issue a 1099-NEC or 1099-MISC, which reports the income they’ve paid you. Make sure to keep this document safe as you’ll need it during tax time.
For those who make significant royalties, you might also need to file Schedule SE (Self-Employment Tax) to calculate your Social Security and Medicare contributions. Remember, even if you don’t receive a 1099 form, you’re legally required to report the income.
Getting familiar with forms like Schedule C and Schedule SE is important, but don’t stress. You can use tax software or hire a tax pro to help you navigate the paperwork. Just ensure all your income and expenses are clearly listed, and you’re good to go.
3. How to Deduct Expenses to Lower Your Tax Bill
If you’re serious about keeping more of your hard-earned royalties, knowing what expenses you can claim as deductions is key. Common tax-deductible expenses for self-publishing authors include editing, cover design, marketing, website costs, and even home office space.
For example, if you hire a professional editor or buy software like Scrivener, those costs are deductible. Keep receipts, invoices, and records of any purchase or service related to your writing business. This documentation makes it easy to justify your deductions if ever audited.
Also consider expenses like internet bills, electricity, and even a portion of your phone bill if you use it for your author business. To maximize deductions, separate your business expenses from personal ones: open a dedicated bank account or credit card. That way, your records stay organized and straightforward.
Remember to estimate the percentage of your home used exclusively for work—say, a 10×10 room—so you can deduct a proportionate share of your rent or mortgage. This can significantly lower your taxable income. Consulting with a tax pro or using tax tools can help you identify and claim all eligible deductions, ultimately reducing your tax bill.
4. How to Keep Accurate Records of Your Expenses
Getting into the habit of recording all your business expenses right from the start can save you a lot of stress come tax season.
Use dedicated apps or spreadsheets to track your receipts, invoices, and payments—don’t rely on just your memory.
Scan or photograph receipts and store them digitally; cloud storage options like Google Drive or Dropbox work well for easy access.
Set aside a specific folder or account just for your business expenses to keep things organized.
As you make purchases related to your writing—be it software, cover design, or marketing—immediately log them with date, amount, and purpose.
Regularly reconcile your records with your bank or credit card statements to ensure everything lines up.
Don’t forget to note any mileage if you travel for webinars, book tours, or research, as this can also be deductible.
Doing this weekly prevents a mountain of receipts to sort through at the end of the year.
If you’re unsure about what counts as a deductible expense, consult IRS guidelines or ask a tax professional for clarity.
5. Understanding Self-Employment Taxes for Authors
If you’re earning money from your self-publishing efforts, chances are you’ll be on the hook for self-employment taxes.
Right now, the self-employment tax rate sits at about 15.3%—that covers Social Security and Medicare contributions.
This is separate from your income tax and applies once your earnings surpass the IRS threshold, which for 2025 is just $600 from a single platform.
It might sound like a lot, but remember, you can deduct a portion of your expenses before calculating how much you owe.
The good news? You can set aside a percentage of your income every month to cover these taxes, avoiding a big bill down the line.
Filing quarterly estimated taxes is a way to stay ahead, especially if your self-publishing income is steadily growing.
If this feels overwhelming, hiring an accountant or using tax software tailored for self-employed people can make things easier.
6. When and How to Pay Self-Employment Taxes
Self-employment taxes aren’t due all at once—they’re paid quarterly through estimated tax payments.
The IRS typically expects these payments in April, June, September, and January of the following year.
Use IRS Form 1040-ES to calculate your estimated taxes based on your income and expenses.
If your income fluctuates, adjust your payments accordingly to avoid overpaying or underpaying and facing penalties.
Make sure to keep a close eye on your income so you can pay the right amount and avoid any surprises when taxes are due.
Electronic payments are easiest—set up direct pay through the IRS website or your bank account.
Failing to pay quarterly can result in penalties or a hefty bill during tax time, so stay proactive about your payments.
7. How to Report Income from Ebooks and Royalties
Income from ebooks and royalties needs to be reported on your tax return, no matter how small.
While platforms like Amazon often send out Form 1099-MISC or 1099-NEC if you earn over a certain amount, you’re responsible for reporting all income regardless.
If your royalties are substantial, you might need to fill out Schedule E to report passive income or royalties.
Keep detailed records of all royalty statements and sales reports to ensure your numbers are accurate.
For example, if you earned $2,500 from Kindle royalties in a year, that amount should be included in your total income.
Remember, the IRS considers royalties as self-employment income, so they’re subject to self-employment taxes as well.
Use tax software or consult a tax pro to make sure you’re reporting everything correctly and claiming all applicable deductions.
8. Why Creating a Tax ID Number Before Publishing Is a Must
Having a Tax Identification Number (TIN), such as an EIN, makes your self-publishing business look more professional and helps streamline your tax process.
Getting an EIN from the IRS takes just a few minutes online and is free—don’t wait until after your first sale to apply.
It’s especially useful if you plan to hire freelancers, open a business bank account, or sell on multiple platforms.
Platforms like Amazon often request your EIN if you’re earning above certain thresholds, so having it ready prevents delays.
Not having an EIN can sometimes complicate your tax filings and increase the risk of mix-ups with income reporting.
Applying for a free EIN through the [IRS](https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online) is straightforward and takes minutes.
It also provides an extra layer of privacy—your Social Security number stays protected, which is a bonus.
9. What Happens if You Sell Without a Tax ID on Platforms
If you skip obtaining a Tax ID and you sell on platforms like Amazon or Apple Books, you might run into trouble at tax time.
Many platforms are now mandating that you provide your EIN or SSN for tax reporting purposes once your earnings cross a certain threshold.
Without that ID, they may withhold a portion of your earnings for taxes or even suspend your account until you submit the required info.
Failing to report your income accurately can lead to audits, penalties, or interest on unpaid taxes.
It’s better to get your EIN early—this way, you can supply the necessary tax details upfront and avoid potential headaches later.
Plus, having a Tax ID helps keep your personal details private, which can be a relief for many writers.
If you’ve started without one, consider applying for an EIN as soon as possible to stay compliant and keep your publishing business running smoothly.
FAQs
Include all income from book sales, royalties, and other related earnings on your tax return using Schedule C or Schedule F, depending on your business structure. Accurate records help ensure proper reporting and compliance with tax laws.
Typically, self-publishing authors use Schedule C to report profit or loss from their business. If you earned over a certain amount, you may also need Schedule SE for self-employment taxes and Form 1099-K or 1099-MISC from sales platforms.
Deduct expenses such as editing, cover design, marketing, software, and printing costs. Keep detailed records and receipts to validate these deductions when filing your taxes, reducing your overall tax bill.
A TIN is required for tax reporting purposes, especially if you sell on platforms or receive royalties. It helps ensure your earnings are properly documented and reported to the IRS.
