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Inklings Issue 4.16
i n k l i n g s
Inkspot's newsletter for Writers on the Net
Issue 4.16 Aug.7, 1998
================================================================
<http://www.inkspot.com/inklings/issues/ink0416.html>
* Over 38,000 subscribers! *
This issue features two articles with tax tips for writers by
Michael A. Jones and Alice Williams.
This issue sponsored in part by:
================================================================
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THE WRITER'S SOFTWARE COMPANION: multimedia software by Writer's
Digest's Nancy Kress. Uses advanced learning tech. and total
immersion to bypass years of trial-and-error, dramatically
accelerating a writer's progress. http://www.novalearn.com
================================================================
ISSN 1205-6413. Copyright 1995-1998 Debbie Ridpath Ohi. See end
of issue for copyright/contact info. http://www.inkspot.com
================================================================
CONTENTS THIS ISSUE:
From The Editor's Desk
Fresh Ink and Market Information
Writers, Golfers, and Taxes
Tax Tips For Canadians
Writers' Classifieds
================================================================
FROM THE EDITOR'S DESK:
=======================
This issue was delayed two days because of my trip to Los Angeles
to attend the annual SCBWI conference. Lee Wardlaw (ASK THE
CHILDREN'S BOOK AUTHOR, column appears next issue) and her
husband Craig Jaffurs (owns Jaffurs Wine Cellars) were kind
enough to let me stay with them for a night. Lee and I drove to
the SCBWI conference together the next day.
I thoroughly enjoyed the conference, and highly recommend it to
anyone interested in children's writing or illustration. It was
wonderful to be able to meet some of you in person. One of my
favorite comments from the convention: "Wow, so you -are- a real
person!" :-) Thanks also to the SCBWI Regional Advisors, who
invited me to give a talk at one of their meetings. If you're
interested in finding out more about the SCBWI, see
http://www.scbwi.org.
Congratulations to Bill Whitney, whose name was randomly selected
to win a copy of TAX TIPS FOR WRITERS by Elizabeth Klungness.
FRESH INK
=========
BOOK PRIZE GIVEAWAY: STEIN ON WRITING
-----------------------------------------
STEIN ON WRITING is by Sol Stein (1995, St. Martin's Press). This
is one of the best books I've ever read on writing, packed with
useful information for both newcomers and experienced writers,
well-written and fun to read. *Highly recommmended*.
One name will be randomly drawn to win this book. To enter, send
email giveaway@inkspot.com with your name and email address with
"stein" in the subject header. By entering, you agree to let
Inkspot and Inklings publish your name and email address if you
win. Deadline: August 16th. More info about the contest and book
(including ordering info) at:
http://www.inkspot.com/admin/giveaway.html
If you wish to contact Inkspot to volunteer a writing-related
giveaway book or product, please send email to editor@inkspot.com
with "book for giveaway" in the subject header.
Acses
-----
Compare price, availability, shipping times and shipping costs
of any book in over 25 online bookstores.
http://www.acses.com/
SCRNWRIT mailing list and website
---------------------------------
Useful resource for screenwriters.
http://www.panam.edu/scrnwrit/
For Nature Writers
------------------
Nature writers can get newsletter and ezine, join a free
workshop, take special classes.
http://ebbs.english.vt.edu/nww/nww.html
Word On Fiction
---------------
Zine for writers. Next issue due out mid-August.
http://www.geocities.com/Athens/Aegean/5739
Verla Kay's website
-------------------
Children's author website, nicely put together. Chat room
workshop on Aug. 11th with literary agent Steven Malk.
http://www.mlode.com/~verlakay/
Pitsco's Ask An Expert
----------------------
Free research advice from volunteers.
http://www.askanexpert.com/askanexpert/index.shtml
Grammar Hotline Directory
-------------------------
Includes directory to many grammar hotlines.
http://www.tc.cc.va.us/writcent/gh/index.htm
Freelance Success
-----------------
Detailed market info for non-fiction writers. For subscription
info, send SASE to 801 NE 70th St., Box IK, Miami, FL 33138
or email freelance-success@usa.net.
Writers In The Kitchen
----------------------
I picked up an advance copy at the SCBWI conference, and it looks
wonderful. Favorite recipes from a number of children's book
authors, collected by Tricia Gardella. Available from Boyds Mill
Press in the fall.
Alsop Review Contest
--------------------
$100.00 Cash Prize for Best Short Story and Best Poem submitted by
September 30th. No entry fee. Details and writers' guidelines at
http://www.alsopreview.com/
** Please send suggestions for Fresh Ink to freshink@inkspot.com
================================================================
MARKET INFORMATION
==================
Please get current, detailed guidelines before submitting to
publications if possible. Don't submit to email addresses unless
specifically stated. Include a SASE for surface mail replies.
More market info at: http://www.inkspot.com/market/.
==-----------------------------------------------------==
"FNASR" = First North American Serial Rights, "SASE" =
self-addressed, stamped envelope, "simsubs" = simultaneous
submissions, "mss" = manuscript, "RT" = response time, "GL" =
guidelines, "wds" = words, "cc" = contributor's copy,
"IWGL" = Inkspot Writer's Guideline Library.
Markets Editor: Sal Towse (ST).
If you are a paying market and wish to add your listing to
Inkspot/Inklings, request a form from mktform@inkspot.com.
Check out the *INKSPOT WRITERS' GUIDELINES LIBRARY* at:
http://www.inkspot.com/cgi-bin/guidelines/guide.cgi
MASSAGE MAGAZINE
----------------
Massage Magazine, Keeping Those Who Touch-In Touch, 200 Seventh
Ave. #240, Santa Cruz, CA 95062 USA. Editor: Karen Menehan.
Bimonthly print magazine. "Massage Magazine is an
internationally circulated trade publication for massage
therapists and allied health professionals that provides a forum
for the presentation of the issues facing massage therapists and
bodyworkers worldwide. MM presents interviews with the
profession's leaders, technique articles, feature stories on
massage and bodywork, profiles of innovative therapists, business
articles, and the latest news on trends and developments in the
field." Seeks poetry, fillers, non-fiction. Pays 30 days after
publication. PAYMENT: "Depending on length and quality (anything
from filler to full-length feature articles), payment can range
from $30 to $350." Buys first rights. Also: "We ask permission,
without additional payment, to put the article in CD-ROM format
for circulation to U.S. libraries." No simsubs, reprints ok.
Encourages new/unpublished writers. Editorial lead time: 4
months, seasonal: 10 months. Get sample copy by writing
office@massagemag.com and telling them you are a freelance
writer. Guidelines with SASE. Subscribe by emailing
cstsrv@massagemag.com. Email submission ok, no queries necessary,
send complete mss. Include photos if applicable. NON-FICTION:
450-3,500 wds. POETRY: 50-200 wds. Contributors receive two
complimentary copies of the issue their work appears in. LOOKING
FOR: "Profiles of massage therapists/bodyworkers, newsbriefs on
industry happenings, feature articles on massage businesses or
schools." NOT LOOKING FOR: "Anything that mentions sex will not
be considered for publication. Articles about peripheral subjects
- spa facials, herbal concoctions - will not be considered.
Material that places massage therapy or bodywork in a negative
light will not be considered." OTHER REMARKS: "We're willing to
work on article development with free-lancers." (Confirmed
Jul.23/98)
URL: http://www.massagemag.com
Email: edit@massagemag.com
SMITHSONIAN MAGAZINE
--------------------
SMITHSONIAN Magazine. 900 Jefferson Drive, Washington, DC 20560.
(202) 786-2900. Articles Editor: Ms Marlane Liddell. SMITHSONIAN
is the membership magazine for the SMITHSONIAN Institution.
Monthly. Circ: 7.9mil. 8.5x11" ~150pp. Audience: 47% are between
35-54 yrs old. 77% attended college. Evenly male/female. NEEDS:
Lengths range from a 650 wd humor column to a 4,000 wd
full-length feature. "We consider focused subjects that fall
within the general range of SMITHSONIAN Institution interests,
such as: cultural history, physical science, art and natural
history. We are always looking for offbeat subjects and profiles.
We do not consider fiction, poetry, travel features, political
and news events, or previously published articles. We have a
two-month lead time." PAYS: On acceptance. 1/3 kill fee. Payment
is negotiated. FNASR. RT: 2 mos. E-mail queries accepted. Queries
should be 250-300 wds. SAMPLE: $4 for current issue. $5 for back
issues. Send request to Judy Smith at above address. TIPS: Read
at least six months worth of SMITHSONIAN and become familiar with
our style and content before making a submission. (ST)
URL: http://www.smithsonianmag.si.edu/smithsonian/
GL: http://smithsonianmag.si.edu/smithsonian/writers.html
E-mail: siarticles@aol.com
NEW MOON
--------
New Moon: The Magazine for Girls and Their Dreams. P.O. Box 3620,
Duluth, MN 55803-3620. 218-728-5507 FAX:218-728-0314 Contact: Deb
Mylin, Bridget Grosser. "An international, multicultural magazine
portraying girls and women as powerful, active and in charge of
their own lives - not as passive beings who are acted upon by
others. New Moon celebrates girls and their accomplishments. New
Moon supports girls' efforts to hold onto their voices, strengths
and dreams as they move from being girls to becoming women."
Bimonthly. 48pp. Audience: Girls, ages 8-14 yrs. Circ: 30K. NEEDS:
"All material should be pro-girl and focus on girls, women, or
female issues. List of themes included in guidelines, available
by e-mail. Editorial lead time: 6 mos. Considers reprints. (Let
us know.) Prefers e-mail submissions. No phone queries.
Non-fiction betw 300-600 wds. Non-fiction profiles of women and
girls are preferred. Non-fiction has better chance for
publication when accompanied by several good photographs (B/W
preferred), focuses on one of our editorial themes, and uses
several quotes. Three-six short fiction pieces (1200 wds) are
published annually." RIGHTS: FSR pays on publication. 4-8¢/wd RT:
3 mos. Sample: "Call us to order one for $6.50 with a
Visa/MasterCard." (ST)
URL: http://newmoon.org/
GL: available through e-mail and at website
E-mail: newmoon@computerpro.com
READER'S DIGEST
---------------
Reader's Digest, Box 100, Pleasantville, NY 10570-0100 FAX:
914-238-6390.
NEEDS: True, unpublished stories used in Life in These United States,
Humor in Uniform (experiences in the armed services), Campus Comedy
(life at college), Tales Out of School (high school anecdotes), All in a
Day's Work (humor on the job) and Virtual Hilarity (computer-related
stories). Max: 300 wds. Samples on line. PAY: On publication. $400.
Submission by U.S. mail, e-mail or through form-mail at site. ALSO
NEEDS: Original or previously published material for Laughter, the Best
Medicine, Notes From All Over, Personal Glimpses, Points to Ponder,
Quotable Quotes and elsewhere: $35 to the first contributor of an item
from print or electronic media; $30 per Reader's Digest two-column line
for original material. $50 for an original item for Toward More
Picturesque Speech. $35 to the first contributor of a published item.
Original contributions become our property upon acceptance and payment.
Previously published material must have the source's name, date and page
number. NOTE: For e-mail, put feature name under Subject. Include your
name, address, phone number as part of your Message. CONTRIBUTIONS
CANNOT BE ACKNOWLEDGED OR RETURNED. Note: Last year, editors
selected only a few hundred stories from over a quarter million
submissions. (ST)
URL: http://www.rdinteractive.com/
GL: frame-driven. Click on "Laugh Lines"
E-mail: readersdigest@notes.compuserve.com
SHORT MARKET TIP:
Reader's Digest is looking for lawyer jokes. Send jokes to
conilee@wtco.net (see website first). "If we pick it to run in
our October issue, you'll earn $400."
http://www.readersdigest1.com/features/rdmag/lawyer.html
=================================================================
Ask The Experts
---------------
*** Please put "inklings question" in the subject header. ***
Judith Bowen (ROMANCE WRITER) jbowen@max-net.com
David Breeden (POET) drpoetry@ktc.com
Charles Deemer (SCREENWRITER) cdeemer@teleport.com
Mark Fowler (LAWYER) askthelawyer@inkspot.com
Susan Graham (AGENT) slgraham@mindspring.com
Carol Henson (BOOK DOCTOR) bookdoc@Prodigy.net
Ken Jenks (ELECTRONIC PUBLISHER) MindsEye@tale.com
Bob Sablatura (JOURNALIST) bob.sablatura@reporters.net
Michelle Sagara (SF/FANTASY WRITER) Michelle.Sagara@sff.net
Lee Wardlaw (CHILDREN'S BOOK WRITER) lwardlaw@gte.net
Marcia Yudkin (FREELANCE WRITER) send to yudkin@inkspot.com
Columnists may be unable to reply privately to every message,
but will answer selected questions in future issues of Inklings.
Please keep your question BRIEF and send it to *one* columnist.
=================================================================
ASK THE EXPERTS will appear next issue.
================================================================
PLEASE NOTE: The following two tax articles are intended to
provide general information for writers. For legal/accounting
services or advice specific to your situation, you are advised to
consult a professional tax accountant.
================================================================
WRITERS, GOLFERS, AND TAXES
----------------------------------------------------------------
by Michael A. Jones <mjones@linfield.edu>
As someone who provides tax advice to a large number of writers,
I am frequently asked two questions. The first is easy to
respond to, the second is not so easy.
Question #1 Are the earnings of a part-time writer taxable?
------------------------------------------------------------
US tax law has never made a distinction between part-time and
full-time earnings, whether from writing or any other activity.
Simply put, if you earn it you pay taxes on it. The only
exception occurs if total earnings for a year (from all sources)
are so low that filing a tax return is not required.
Question #2 - As a part-time writer, what expenses can I deduct
on my tax return?
---------------------------------------------------------------
To answer this question I find it best to respond with some vague
phrase, such as "it depends." A better answer is not possible
without knowing a few additional facts.
Like the answer to the first question, deductibility has nothing
to do with full-time or part-time status. However, an important
distinction is made between two types of writers: those who are
self-employed in the "business" of writing (i.e., professional
writers) and those who write as a hobby only. In this sense,
writers are like golfers; some are self-employed in the
"business" of playing golf (professionals) while others play golf
as hobbyists (amateurs) only. And like pro golfers, some pro
writers may work at their business on a full-time basis while
others are part-time professionals. Similarly, hobbyists
(whether writers or golfers) may be involved on a full or
part-time basis.
Those in the business of writing are generally allowed to deduct
(write-off) all bona fide business expenses, with few
limitations. Examples of business deductions can include all
business travel costs, home office expenses and a significant
portion of health insurance premiums. Business deductions belong
to a superior class of deductions (called above-the-line
deductions) that not only reduce taxable income, but may even
convert writing income into a writing loss. Business losses from
writing can be used to offset other, taxable income.
Those who write as a hobby are subject to strict limits on
deductions. In addition to categorical limits (no home office
expenses and no deductions for health insurance premiums), there
is an overall limit on the amount of hobby deductions: the amount
of hobby income. Because hobby deductions are never allowed to
exceed hobby income, it is not possible to incur a loss from
writing activities. A hobbyist either shows a profit or breaks
even. Further, all hobby expenses are classified as
below-the-line deductions, a generally inferior class of
deductions that may result in no tax benefit at all.
It appears that self-employed writers have all the advantages:
very few limits on deductions and the ability to write off
expenses in periods of little or no income.
However, any taxpayer engaged in a business is subject to an
additional tax from which hobbyists are entirely immune: the
self-employment tax. Just as an employee makes contributions to
Social Security (FICA) and Medicare based on earnings, a business
owner must make similar contributions based on business profits.
Together, FICA and Medicare contributions paid by a business
owners are called self-employment tax.
Many have concluded that it makes economic sense to be classified
as a hobbyist when earnings are robust and be classified as a
professional when earnings are not so good (or nonexistent.) It
should be emphasized, however, that you are not free to make an
annual choice between business or hobby status. Under tax law, a
choice is not even available. The "facts and circumstances" of
each taxpayer's situation will determine the appropriate
classification.
Initially, business or hobby classification is determined by the
taxpayer and indicated on his or her tax return. If the IRS does
not object, the matter is settled. However, disagreements between
a taxpayer and the IRS do occur, and what appears obvious to a
taxpayer is not always as obvious to even the most understanding
revenue agent. If you conclude that a particular classification
is preferred, the best you can do is to structure the facts and
circumstances in such a manner as to make your desired status an
obvious and logical conclusion for tax authorities as well. This
process is the essence of wise tax planning.
Tests to determine whether a writer is engaged in a business
have evolved through time. The IRS once held the view that you
could not be considered in the business of being an author unless
you had produced at least one book. An appeals court has ruled
that test as inappropriate.
Now, revenue agents and tax courts look for evidence of a profit
motive to determine whether a writing business exists. Profit
motive, being a state of mind, is difficult for a writer (and the
IRS) to prove or disprove. Thus, revenue agents must look for
clues that point to the existence of a profit motive. One
significant clue is whether the writer operates in a
business-like manner, with careful accounting records that are
separate from personal financial records.
Another clue is the amount of time and effort the writer spends
engaged in the writing activity. The more time devoted to
writing, the stronger the case for a profit-seeking business.
Many writers have other occupations and can only pursue their
writing activities on a part-time basis. Part-time writers are
not necessarily excluded from being considered as engaged in
business. The degree to which an otherwise employed individual
regularly devotes spare time to writing will aid in establishing
whether profit is a motivating force, and therefore whether the
writer can take advantage of all business deductions.
Many believe tax laws to be unfair, as all income is taxed but
only selected deductions for selected taxpayers can be used to
reduce the income. But tax laws are designed to raise revenues
for governments. Fairness, at best, is a secondary consideration
for law makers. It is often possible to achieve "fairer" tax
treatment (i.e., lower the taxes you pay) through simple
planning. The first step, whether you are a writer or golfer, is
to be clear on your professional or amateur status.
==-------------------------------------------==
Michael Arthur Jones is a CPA and a Professor of Accounting and
Taxation at Linfield College. In addition to numerous articles
and books on financial planning, Jones is the author of THE
WRITER'S TAX GUIDE - Writing and Writing It Off (Veritas
Publishing Co.). The Writer's Tax Guide ($19.95 + s/h) is
available from Bookmasters at 1-800-247-6553.
Copyright (c) 1998 Michael Arthur Jones.
================================================================
TAX TIPS FOR CANADIAN WRITERS
----------------------------------------------------------------
by Alice Williams <ali@istar.ca>
When in doubt, deduct! Just don't doubt your deductions!
The Canadian tax experience for writers is very similar to the
American situation with minor exceptions. The biggest exception
is that the Canadian tax department (Revenue Canada) does not
distinguish between full-time, part-time or hobby status.
Basically, all they're interested in is your total earnings
(income) and whether the deductions you're claiming to offset
your earnings are legitimate.
How can I prove that my writing business is legitimate?
-------------------------------------------------------
When reviewing an income tax return from a self-employed writer,
the first question that Revenue Canada will ask is whether you
pursued your writing as a business. That is, did you intend to
make a profit as a writer? Whether you actually made a profit or
not is another matter - and, like the American situation - more
difficult to prove and disprove.
To justify that you're pursuing your writing career as a
potentially profit-making business, keep accurate and
comprehensive records including query letters, proposals, quotes,
rejection slips, invoices, meeting notes, etc. In short, keep
anything that can prove that you've been busy drumming up
business for yourself.
The more time you spend as a professional writer then the more
expenses you can comfortably claim without raising Revenue
Canada's eyebrows. Similarly, if you only work a few hours a week
as a professional writer, the less expenses you can claim. There
are no hard and fast rules about the profit/expense ratio. The
more profit you make, probably the more expenses you incur. Of
course, you can show a loss (with expenses surpassing your
profit) as long as you're confident that you can prove the
expenses are legitimate in case Revenue Canada comes calling.
If you pursue your writing as a hobby purely for the enjoyment of
the craft and don't expect to make any income from it, then
obviously, you can't deduct any expenses. However, it's very easy
to wander from a hobby to a commercial (and potentially
profit-making) enterprise. Much depends on your state of mind
when you're writing.
For example, if you write something (whether it's an article,
short story or novel) with the expectation that you will make
money at it, then you can legitimately claim any expenses
incurred. Again, keep comprehensive records in case Revenue
Canada ever audits you.
What kind of expenses can I deduct?
-----------------------------------
Basically, you can deduct any expense that you incur while
running or developing your writing business. Long-distance phone
calls, cab fares, printing costs for business cards and
letterhead, stamps, newspapers and magazines, etc. - all of these
are common business expenses and ones that Revenue Canada is used
to seeing.
If you're working from home, you can deduct a percentage of your
household expenses such as electricity, hydro, heat as well as a
percentage of the interest on your mortgage.
There are many other expenses you can deduct, including home
office furniture, computer, etc. As my friends in accounting
circles tell me, when in doubt - deduct. Canadians are taxed at a
substantially higher rate than our friends to the south, so the
more legitimate deductions you can find, the better.
==-------------------------------------------==
Alice Williams is a Toronto-based freelance writer who has
written extensively on financial topics. You can e-mail her at
ali@istar.ca or find her on the web at http://home.istar.ca/~ali.
Copyright (c) 1998 Alice Williams.
================================================================
W R I T E R S ' C L A S S I F I E D S
================================================================
Book Promotion empowers authors to self market their books Online
Charles Kessler 888-680-3223 http://www.bookpromotion.com
=================================================================
MasterFreelancers Web Store: http://www.masterfreelancer.com
Secure, hassle-free shopping for writers & creative pros."
=================================================================
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where a line = 65 characters including spaces and punctuation.
Pay for a 5-issue run and get an extra issue free. All contracts
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=================================================================
EDITOR: Debbie Ridpath Ohi <editor@inkspot.com>
ASSISTANT EDITORS EDITORIAL/ADMIN/WEBSTUFF ASSISTANTS
Rand Bellavia, Fox Tina Kennedy, Scott Snyder, Chris Donner
SYSTEM ADMINISTRATOR BUSINESS MANAGER LIBRARIAN
Bryan Fullerton Jeff Ridpath Noah Chinn
COPY EDITORS/ Gail Heinsohn <intrepidrider@taconic.net>
PROOFREADERS: Cathy Rutland <copyeditor@inkspot.com>
SALES & ADVERTISING: MediaGlue <sales@inkspot.com>
(CLASSIFIEDS: classifieds@inkspot.com)
CONTRIBUTING EDITORS:
Moira Allen, Judith Bowen, David Breeden, Charles Deemer, Mark
Fowler, Susan Graham, Paula Guran, Carol Henson, Ken Jenks, Tina
Kennedy, Bob Sablatura, Michelle Sagara, Sal Towse, Lee Wardlaw,
Marcia Yudkin
Thanks to Samurai Consulting for hosting the Inklings mailing
list. More info: http://www.samurai.com or bryanf@samurai.com
=================================================================
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