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Ahhhh! Tax day is coming! Yes, once again April 15 is almost upon us. Hopefully you’ve already filed your taxes for 2015 by now, or you’re about to. And if you’re a writer (or are otherwise self-employed), hopefully you’re also deducting your writing expenses.

OK, so I’m no tax expert, but I have been filing my own taxes for my entire working life. And I only started using TurboTax when things got a little more complicated — namely, when I started treating writing like a business.

What does that mean? How do you distinguish writing as a hobby from writing as a business? Look deep within yourself for the answer: Are you trying to make a go of a full-time professional writing career? Or are you writing for fun and an occasional story sale?

If you want to write for a living, writing is your business, even if you have a day job that helps pay the bills. If you are starting to sell stories or novels and getting paid for your work, it is definitely a business. In either of these situations, you should consider keeping track of all your writing-related expenses and claiming them as deductions on your tax form, typically using Schedule C (Form 1040) Profit or Loss from Business. In the early years, possibly longer, this is probably going to be more losses than profits, but that’s okay, as long as its not from lack of trying to earn money and you can demonstrate your intentions.

What writing-related expenses can you deduct? You’d be surprised. If you’re attending workshops, conferences, or conventions, you can deduct some or all of your travel and meal expenses. If you’re a writer, you’d better be a reader, so deduct those books, especially the ones you buy for research. (Warning: This may lead to an increase in the number of books you own, because once you know you can claim that purchase as a deduction…) Meals and drinks with other writers can also be deducted, as well as entertainment expenses! Did you buy a new laptop that is exclusively (or mainly) used for writing? Go ahead and deduct all or part of that purchase.

Look, don’t be shady about it. Only you know if these are legitimate writing-related purchases, and you should hold onto receipts and documentation to justify it, should you ever be unfortunate enough to face an audit. But don’t be nervous about it either; you’re entitled to these credits for the considerable time, work, and money you’re investing in your career. Because once you start selling stories and books, the IRS will most certainly be happy to shave off a significant portion of your earnings in income tax. Filing your self-employment taxes can seem intimidating, but Writer’s Digest has a good overview, and you can find lots of information online or consult with a tax professional.

But here’s my one big tip if you’re deducting your writing expenses regularly, which I wish I had thought of years ago: If you can, dedicate one of your credit cards to only writing-related purchases and activities. My wife suggested it to me last year, and this is the first full year in which I’ve implemented it, and wow, it made tracking my expenses so much easier! Everything is in one place and nearly itemized and organized by categories, such as travel, meals, purchases, etc. in the yearly report.

Having this system cut my tax preparation time by more than half, because I wasn’t digging around multiple credit card statements, receipts, and e-mails to account for everything. I typically also maintain an Excel spreadsheet throughout the year, which I forget to update until tax time, and the credit card statement more or less replaced that because I made a habit of charging everything. No fuss, no muss.

Do you have any tax “hacks” like this that work for you? Other tips or suggestions? Drop them in the comments below. And I wish you many happy returns!

As the year comes to a close agents and publishers are preparing to send out 1099 forms. As per IRS guidelines those need to be mailed by January 30. If you've moved or changed your name anytime in the past year I would strongly recommend you get that information to your agent now so come February 1 you aren't freaking out that your 1099 is missing.

--jhf

I think April 15th would be the worst birthday to have. There are two kinds of people as it relates to taxes – those who get a check and those who have to send a check. If you have to send a check (like me), you grudgingly hold onto it until the last minute and mail it on April 14th, leaving you broke and unable to buy a present for your friend with a birthday the following day. If you get a check, you filed in early February. Since you considered the return a sudden windfall, you blew it on something frivolous like a snowcone maker, leaving you no residual to buy a present for your friend with the worst birthday of the year.

Conversely, there would be something extremely cool about being a leap baby and having February 29th as your birthday.

That tidbit is irrelevant today since I just had to write a check to the United States Treasury! Oh, I understand that it costs to provide government services. I know it has to come from the citizens. I just hate filling that out on the check – and then they want me to Fed X it or pay extra for a return confirmation. I’m sorry, but aren’t I paying for the postal service to be sufficient to deliver your money to you? If you have any doubts whether the man in blue who just took my envelop can discharge his duty properly, shouldn’t you institute a better employee screening process instead of charging me another $4.50?

I’m not bitter, though. Not at all.

But while I’m on the subject, I remember when I took my first baby home from the hospital in mid-December. When I did my taxes, I felt like I had cheated the world since I got a deduction for the entire year and she only cost me for two weeks. That was eighteen years ago. So this year I lost the tax credit for her because she turned eighteen. I love her dearly, but like most children, she is complete financial dead weight – all cost, little contribution. And let me tell you Mr. United States Treasury, she costs considerably more now at eighteen than she did at one. I’d trade diapers and formula for cell phones, clothes, gas and car insurance any day.

I’m not bitter, though. Not at all.

I could go on, about paying into a social security system that I am assured will not exist when I am of age to need it. That’s why I had four kids, they are a kind of a retirement plan for me. I figure I can rotate a week a month at each of their houses and mooch off them just to pay them back. I’ll refuse to wear pants, make odd noises and smells, and sit on the front porch complaining about the government all day.

I’m not bitter, though. Not at all…

♦

Photo credit: Robert N. Dennis Collection of Stereoscopic Views

Artwork: The Taxes by Orlov

I am normally an organized person, right on top of things. I outline my plays, have to-do lists, keep a list of movies I plan to see, make my bed as soon as I get out of it in the morning. If you've checked your calendar, you'll note that National Procrastination Week doesn't begin until the second week in March. I don't have time for an entire week of procrastination every year. And I really can't wait until March to procrastinate, so I'm doing it today. I have a mystery novel that I've revised that needs those revisions uploaded on the computer, and formatted for amazon.com so I can sell more books. I have revisions to make to "Asylum No More" now that the show is over. I have a new play to finish the first draft on -- it is outlined, and the first 5 pages are written. I've had two days off to rest up, and I could be working today. However, I saw on my calendar that Procrastination Week was coming up and I'd need to find time for it somewhere, so I thought I might as well get it out of the way, particularly as it is already 4 in the afternoon. So, there ya go. All done with that. I'm not one to tell you what to do, but you might want to look at your own March calendar. Isn't that around the time you're usually getting your tax information together and taking it to your tax person? Or better yet, doing your own taxes and getting them out of the way? You're welcome.

By Edward Zelinsky

Although he had said it before, Warren Buffett struck a nerve with his most recent observation that his effective federal tax rate is lower than or equal to the effective federal tax rates of the other employees who work at Berkshire Hathaway’s Omaha office. Mr. Buffett’s observations have provoked extensive comments both from those supporting his position (e.g., President Obama) and those critical (e.g., the editorial writers of the Wall Street Journal).

In response to Mr. Buffett’s remarks, President Obama has promulgated what he calls “the Buffett Rule,” namely, that those making $1,000,000 or more per year should pay an effective federal tax rate higher than the effective rate paid by moderate income taxpayers. To implement this rule, Senate Majority Leader Harry Reid has proposed a 5.6% federal surtax on annual incomes over $1,000,000. The Congressional Research Service (CRS) has issued a report on the Buffett Rule. Deviating from Mr. Obama’s formulation of the Buffett rule, Mr. Buffett himself has indicated that he only favors higher income taxation for “the ultra rich,” a group which apparently consists of individuals earning substantially more than $1,000,000 annually.

The debate following Mr. Buffett’s comments has been spirited, but, for many, confusing. Here is my effort to clarify the facts and arguments.

1) FICA taxes are the predominant tax burden on most working Americans. As I discussed in last month’s blog, many working Americans pay little or no federal income taxes, but do pay significant FICA taxes to finance Social Security and Medicare. Democrats and Republicans alike have ignored this reality. Democrats prefer to ignore the heavy FICA tax burden on lower income Americans to preclude an honest discussion about the fairness of those taxes to younger Americans, even after considering the Social Security and Medicare benefits younger Americans may receive in the future. Republicans avoid the reality of FICA taxation because it undermines the mantra that half of all Americans pay no federal income tax. That statement is true but incomplete. Working Americans who don’t pay income taxes do pay significant FICA taxes. When Mr. Buffett compares his federal taxes to those paid by his secretary, it is the secretary’s FICA taxation which constitute much of the secretary’s obligation to the federal Treasury.

2) As to the taxation of the affluent, the real issue is the lower rates applicable to capital gains. The CRS estimates that approximately 1/4 of those with annual incomes over $1,000,000 violate the Buffett rule by paying federal taxes at effective rates equal to or lower than the effective tax rates of Americans of modest incomes. Besides the FICA taxes borne by working Americans, this phenomenon is caused by lower federal taxes on capital gains. Today, capital gains (including dividends) are generally taxed at a maximum federal tax rate of 15%. This is essentially the same as the combined employer-employee tax rate which applies under FICA to the first dollar of a working American’s wage income.

3) Millionaires pay higher taxes on their ordinary incomes. Mr. Buffett is evidently one of the millionaires whose income largely consists of lightly-taxed capital gains (including dividends). However, the bulk of those making more than $1,000,000 pay taxes at much higher rates than does Mr. Buffett because they earn ordinary incomes such as salaries and other business profits. These millionaires generally do not violate the Buffett rule since the federal inco

Can you please tell me if a publisher takes care of income tax in royalty payments? Or is paying tax the job of the author or agent?

As an author you are not an employee of the publisher, you are an independent contractor. Therefore you are responsible for filing your own taxes and paying them (quarterly). Typically, all payments are sent through your agent and issued from your agent, less her commission. Therefore, at tax time you should receive a 1099 from your agent that shows your actual earnings. And don't forget to save those receipts for things like your computer, Internet access, printer ink, or the ereader you use. All of those would be considered business expenses.


Jessica

**Quick disclaimer. I'm not even close to a tax attorney so before filing make sure you check with your accountant on what you really can write-off and what you can't.

By Bill Wiist In 2009, there were 2,733 corporate foundations with assets of more than $10 billion and an annual donation of $2.5 billion. In that year foundations made grants of more than $38 billion of which $15.41 billion was from family foundations. In 2009, the 50 largest contributors to health donated more than $3 billion through almost 5,000 grants. The extent of corporate-based foundation funding in public health raises two critical questions for public health policy, research, and programming. First, should corporate-based foundations be setting the public health research and program agenda?

This is getting serious. John Boehner storms out AGAIN. President Obama has offered serious cuts to Medicare, Medicaid and Social Security, and asked for taxes from the rich and corporations. I don't know why the corporations complain, they don't pay them anyway. Seriously, GM takes in how many billions and pays ZERO taxes? Do you read these news articles about what the corporations don't pay? They have a 35% tax rate, but so many loopholes that they never pay anything at all. Apparently Republicans think no services should be given to the poor, only to the rich, and only the middle class should pay taxes. Poor have no money, rich want to hold onto their money, and corporations are too slick to ever give out any money. So, if you're middle class you are totally screwed.
For starters, Social Security should be taken out of everyone's paycheck, regardless of how much one earns. Right now that is capped at 100,000. Why? They still give you a benefit check if you earn over 100,000. Pay up. Also, close down those corporate loopholes. Give them credit for doing good works, but tax them fairly.
And until Congress can reach a compromise how about we shut off their pay? That's right, all payment to Congress is suspended until agreement is reached. What do you want to bet agreement is reached before August 2nd?

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By Edward Zelinsky

As they scramble for tax revenue in a challenging environment, the states increasingly turn to so-called “Amazon” laws to force out-of-state internet and mail order retailers to collect tax on their sales. The Illinois General Assembly is the most recent state legislature to pass an Amazon statute. New York, Colorado, Rhode Island, North Carolina and Oklahoma have already enacted such laws while Amazon acts are pending in other state legislatures.

While they differ in important respects, all of these proposed and enacted laws share the premise that goods which are taxed when purchased in a conventional, bricks-and-mortar store should also be taxed when bought from an online or mail order retailer. This premise is compelling.

It is neither fair nor efficient for a sales tax to discriminate between close economic substitutes, taxing one but not the other. A sales tax should not tax green apples while exempting red apples. Such discrimination is inequitable to growers of green apples and distorts consumer choice by artificially increasing the after-tax price of green apples relative to the competing (and tax-free) product, i.e., red apples.

This is in essence the sales tax status quo under the U.S. Supreme Court’s decision in Quill Corp. v. North Dakota. Quill held that, under the U.S. Constitution’s dormant Commerce Clause, a state can require a retailer to collect and remit tax on its sales only if the retailer is physically present in the taxing state. Under this rule, firms like Amazon, Overstock.com and similar mail order firms need not collect tax on their sales since they lack physical presence in most states.

As a matter of law, when an electronic or mail order retailer does not withhold tax, the buyer of online or mail order merchandise is required to self-assess and pay the tax to his home state. In practice, it is virtually impossible for the states to enforce this obligation. Goods ordered over the internet or by mail order are thus effectively tax-free while the same goods are subject to sales tax when purchased in a conventional store physically present in the taxing state.

This de facto tax discrimination between conventional and electronic sales is no more fair or efficient than a sales tax which taxes green apples but not red apples.

The states (supported by bricks-and-mortar retailers) have asked Congress for federal legislation permitting the states to require out-of-state retailers to collect taxes on their electronic and mail order sales, even if such retailers lack in-state physical presence. So far, Amazon and its allies have successfully lobbied Congress to resist the states’ pleas.

Frustrated by Congress’ inaction, state Amazon laws are a form of self-help, designed to require out-of-state retailers to collect state taxes on their sales despite Quill. The Amazon laws of New York, North Carolina and Rhode Island create statutory presumptions that in-state affiliates create sales tax jurisdiction over the out-of-state internet firms with which such affiliates are associated. Taking a different approach, Colorado’s Amazon law requires internet retailers to report their Colorado sales both to the Colorado purchasers and to the Colorado Department of Revenue.

For two reasons, these state Amazon laws are neither a practical nor a legal solution to the problem of untaxed internet and mail order sales. Laws like Colorado’s, which require reporting by out-of-state firms, are unconstitutional under Quill, as the U.S. District Court for the District of Colorado recently held. Laws like those of New York, Rhode Island and North Caroli

And here is some advice I’ve pulled off of the VTLIBRARIES mailing list about tax assistance for people with disabilities. Here is an obligatory link to an article outlining the effect on some public libraries (in Maine in this case) who are dealing with the fact that people are not getting mailed paper tax forms unless they request them. Currently about 70% of Americans file their taxes electronically.

“Hundreds of the most popular federal tax forms and publications are available for download from IRS.gov for sight impaired individuals. These products range from talking tax forms to Braille formats, and are accessible using screen reading software, refreshable Braille displays and voice recognition software. Click on the links below to download these forms and publications:

Download Accessible Tax Forms (Braille and Text Formats)
Download Accessible Tax Publications (Braille and Text Formats)
Download Accessible Talking Tax Forms

Download Tax Instructions (Large Print Format)
Download Tax Publications (Large Print Format)

The IRS also offers customer service assistance for persons who are deaf or who have hearing disabilities. People with TTY equipment may call 800-829-4059, which is a toll-free number, for assistance.

People who are unable to complete their tax return because of a physical disability may get assistance from an IRS office, or through the Volunteer Income Tax Assistance Program (VITA) sponsored by the IRS. Taxpayers can find a nearby location by calling 1-800-906-9887 or checking the partial list on the IRS’s website.

Publication 907, Tax Highlights for Persons with Disabilities, explains the tax implications of certain disability benefits and other issues, and is available at IRS.gov.

Visit www.IRS.gov

Tax documents are beginning to roll in from my day job, my bank... and any day I'm expecting 1099s from my agent. Less than three months until April 15, OMG!

I've been a fan of TurboTax for years, but this is the first time I'll be itemizing deductions. At least, I think I will be. I guess it depends on how they compare to the standard deduction.

I confess that I haven't been terribly organized about this tax stuff. (Big surprise, right? A writer not being organized about their tax stuff?) When I started submitting novels, I tried not to get my hopes up too much. That meant trying not to expect that I'd ever actually get paid to write. That meant not paying attention to the stuff I could deduct come tax time.

Then I got the check for the first half of my advance, and I realized, "Huh. I'd better start scavenging for receipts." This was a big year for computer stuff: a new laptop, software, domain name. A conference here, a workshop there.

But I know there are things I missed. Books and pens I didn't save the receipts for. Gas. Train tickets. Workshops that didn't give me receipts. (I'm still not sure what to do about that.) I'll have to start keeping better track.

Since I'm apparently determined to continue using TurboTax this year, I've been poking around online, looking for advice on what deductions writers can take. These are two that have proved informative as well as non-scary:

• Tax Deductions for Writers: Get Your Money's Worth, by Phebe A. Durand
• Taxes and the Writer, by Daniel Steven

Non-scary except that now I'm trying to figure out whether I need to depreciate my laptop.

Got any tax tips for a new author?

Not, lol. 8+ hours later over 2 days, I'm getting close to finishing taxes. Yay!

That's the biz side of writing--the numbers and figures. I can't do math to save my life. I failed math in 6th and 7th grade. Not even a tutor or my friends could save me. :)

But I'm almost done and then . . . I'm outlining INITIATION and working on DOMINATE with Kate. Soooo exciting to have a new series to work on. Violet & Ruby Productions is going to be putting out the hottest, most fun e-book novellas for tweens and teens.Be sure to follow us on Twitter: @Violet_and_Ruby

I can't wait for you guys to read our first project! Be sure to scroll below and leave a comment (it can be anonymous if you like) or email me with a question for our PINKY SWEAR novella. How cool would it be to see your question in print? We're already getting a lot of great questions about friendships, so keep them coming.

xoxo

So the Republican blockade of bills that might actually help the middle class and the poor continues—all held hostage to the party’s demand that tax cuts for millionaires and billionaires be extended. You have to hand it to Republicans, they know how to practice togetherness. Not one independent voice among them. Tweedle-Dee, Tweedle-Dum, and Tweedle-Dee-Dum—the Boehner, McConnell-Cantor corporate rap trio – lead their faithful lackeys in their continuing assault on government for the American people. It’s nothing new. Ever since President Obama took office, Republicans have turned their backs on the people whom they were elected to represent and have instead refused to participate in governing. President Carter called their behavior “irresponsible” in an interview with NPR’s Diane Rehm on Tuesday, November 30th. Along with raw sewage and flesh-eating microbes, Republicans are right up there with the most toxic elements in public life. Never before in my lifetime – and I’m a senior citizen – have I seen an entire political party work single-mindedly to bring down the country in order to bring down the President.

Congressional Republicans have become the most destructive force in American life. Their efforts to create more economic disaster to gain political advantage in the 2012 election displays disrespect for the Presidency and contempt for the American people, for democracy and for our Constitution. As if their actions hadn’t revealed their seditious strategy right out front, corporate rapper McConnell proclaimed the Republicans’ agenda baldly: “The single more important thing we want to achieve is for President Obama to be a one-term president,” he said in an interview with the National Journal’s Major Garrett on October 29, 2010. Note: not a single word about the good of the country or the American people. Now McConnell has sent his ultimatum letter to Senator Harry Reid basically saying, “It’s our way or the highway.” In the ultimate display of arrogance and hypocrisy, the Boehner/McConnell/Cantor trio refused to extend unemployment benefits for the 2 million Americans whose benefits expired midnight December 1st. For the past two years, this gang of naysayers has voiced support for only one thing – tax cuts for the super rich. In case you don’t remember, these are the Bush tax cuts that raided the U.S. Treasury, squandering the budget surplus left by President Clinton and creating the largest redistribution of wealth from the middle class to millionaires in the nation’s history. No matter that extending these tax cuts will add $700 billion to the deficit over the next 10 years. Well, you know, the country can afford a deficit that goes to “feeding” millionaires but not an $18 billion (the cost of extending unemployment benefits to the long-term unemployed) deficit that goes to put food on the tables of people who’ve lost their jobs. Recall Rhett Butler’s line to Scarlet O’Hara in GONE WITH THE WIND: “Frankly, my dear, I don’t give a damn.”

It’s all so simple really – not all deficits are equal. Although the “party of No” proclaims cutting the deficit is the single most important thing that Congress must do, this deficit addition that will be created if Congress allows itself to be bullied into extending the millionaire tax cuts doesn’t count. Under a Democratic President, Republicans are for reducing the deficit; under a Republican President, they’re for racking it up. And rack it up, they did, creating the largest deficit in the history of all previous administrations put together. But that was THEN, you know, under the Bush/Cheney team of good ol’ corporate boys.

If the Tea Partiers, or anybody else who voted the new crop of Republicans in office, believes Republican propaganda about working for the American people, they should pay close attention to what Republicans have voted against during these past two years. Then decide what people Republicans are working to

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Dear Mr. Gates:

You have, by dint of your intelligence and sincerity, become a major spokesman for wealthy Americans calling for higher taxes. Since the nation’s budgetary problems will only be solved by combining spending reductions with tax increases, this is a compelling claim.

However, the devil, as they say, is in the details. Allow me to call three details to your attention:

1) Microsoft’s tax avoidance. Microsoft has become increasingly adept at parking its profits in low tax foreign jurisdictions, rather than paying U.S. taxes. After analyzing Microsoft’s financial statements, Tax Analysts’ Martin A. Sullivan recently concluded that Microsoft “has dramatically stepped up its efforts to take advantage of lax U.S. transfer pricing rules.” In lay terms, Microsoft is avoiding U.S. taxes by accounting maneuvers which shift its profits to low tax havens.

Of course, Microsoft is not alone in this behavior. However, Microsoft is the source of your family’s wealth and influence. I suggest that you start a campaign to press U.S. corporations to pay U.S. taxes and that you lead with Microsoft as the campaign’s first target.

2) Millionaires and billionaires are different. You are the leading proponent of the plan to establish an income tax in Washington State. The tax will be levied at a rate of 5% on annual incomes over $200,000 ($400,000 for couples). The rate will increase to 9% on annual incomes over $500,000 ($1,000,000 for couples).

Individuals earning these kinds of incomes are undoubtedly affluent. But few of them are software billionaires. Unfortunately, the Washington State levy will tax millionaires and billionaires at the same rates.

Many individuals triggering the first tier of the Washington income tax will be professionals like me. Many of the individuals triggering the higher tax level will be small businessmen and businesswomen. As to this latter group, the Washington tax will be among the nation’s highest. For these people, the tax will impose a noticeable burden and could lead to economic distortions such as a decision to leave Washington for a state with a low or no income tax.

It is neither fair nor efficient for the billionaires of Microsoft to pay the same marginal tax rates as these other taxpayers.

I suggest that you call for a third, substantially higher rate for the Washington State tax to apply to individuals such as you. The resulting revenues would permit a reduction of the rates applying to other, less affluent Washington State taxpayers.

3) The Gates Foundation is a tax shelter. The Gates Foundation does great work of which you and your family can be justifiably proud. But there is one thing the Gates Foundation doesn’t do: pay taxes.

You and your son have both been outspoken proponents of federal estate taxation. However, the resources you and he contribute to the Gates Foundation avoid such taxation. Moreover, the foundation, as a tax-exempt entity, pays no federal income tax.

I understand and applaud the charitable impulse which animates the Gates Foundation. My wife and I have established a private foundation in memory of our son though this fund is, needless to say, much smaller than the Gates Foundation.

It is, nevertheless, problematic to call for others to pay higher estate and income taxes while the Gates Foundation, one of the country’s largest, effectively shelters your and your son’s incomes and estates from the federal fisc.

I urge that the Gates Foundation annually and voluntarily

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By Edward Zelinsky

The United States is in the midst of a “free lunch” campaign in which Republicans and Democrats alike promise painless resolution of our budgetary problems. As a result, neither party will have an electoral mandate for the hard choices necessary to tackle our fiscal quandaries. Both parties are squandering an important opportunity to mold public opinion and set the stage for meaningful budgetary discipline.

In a recent survey of the U.S. economy, the Organization for Economic Co-operation and Development (OECD) concluded, with considerable understatement, that “the United States faces challenging budgetary prospects.”

This conclusion should surprise no one. The history and current reality are there for all to see: In 2001 and 2003, the Bush Administration and Congress reduced federal income taxes significantly. Instead of decreasing federal spending to pay for these tax reductions, the Bush Administration presided over significant increases of military and domestic outlays as well as unrestrained growth of so-called “entitlement” spending – Social Security, Medicare, Medicaid. The Obama Administration has continued and exacerbated this trend. At the state and local levels of government, budgetary prospects often even worse as unfunded pension obligations and unfinanced retiree health benefits balloon.

To be sure, there is much contemporary political rhetoric about the need for fiscal discipline. President Obama has appointed a National Commission on Fiscal Responsibility and Reform. Tea Party candidates successfully exploit growing public anxiety about budgetary deficits.

However, none of this should be taken too seriously. President Obama’s deficit commission is scheduled to report only after this November’s elections. We have become inured to public images of Tea Party activists denouncing federal spending – except for their own Social Security and Medicare payments. The House Republicans’ “Pledge to America” promises fiscal responsibility while also refusing to reduce defense spending or spending which affects seniors.

The net result has been a free lunch campaign in which Democrats and Republicans alike promise budgetary discipline but refuse to specify how they will achieve it. The bi-partisan message to the electorate is that public deficits can be controlled without pain.

This, of course, is untrue.

Undoubtedly, it is considered wise politics to promise tax reductions and vague spending restraints while ignoring the tough choices necessary to put our budgetary house in order. However, in the long run, the promise of a free lunch will prove to be poor politics.

Empty, anodyne campaigns result in elections without mandates. Postponing the real discussion until after the election forfeits the opportunity to establish an electoral basis for the painful actions necessary to eliminate federal and state budget deficits.

In ordinary times, off-year elections are low key affairs in which the President’s party typically loses some or all of the congressional seats it gained in the prior presidential election. Conventionally, such off-year elections are preceded by locally-oriented campaigns.

However, these are not ordinary times. We are barely recovering from the worst economic contraction since the Great Depression of the 1930s and confront current and projected budgetary deficits of unprecedented magnitude. In this historically unique setting, the 2010 campaign is an opportunity for the two parties to form electoral mandates by specifying how they wil

What could be more fun than meeting up with a writing friend to spend a few days researching the setting of your new manuscript? Nothing I can think of!

That’s what I did last week, and no other experience has left me so “pumped” to write in years. We started in Charleston, South Carolina, then drove up the coast to North Carolina, logging over 1,200 miles. The azaleas were in bloom everywhere we drove (see above). Talk about beautiful!  I’ll share a few photos below, and then get back to the usual “Writer’s First Aid” column on Wednesday.

Breathtaking!

I needed to visit a plantation for research, but first we explored downtown Charleston. We started in the Historic City Market, and you can see a mini-slide show here. There I found a hand-painted card that is now framed on my desk. It says: “Today I will translate the reality of my dreams into my ordinary day…in order to achieve extraordinary results!” Doesn’t that sound inspiring? A great quote to read each morning before I start work.

We walked to the wharf next, past some very colorful houses!

The next day we visited the Boone Hall Plantation, which is still a working farm. This link has an entire video and photo gallery, if you’re interested.

As we walked down the long avenue of giant oaks dripping with Spanish moss (behind me above), I could easily imagine myself as Scarlett O’Hara arriving at the infamous  Twelve Oaks picnic. Turning 180 degrees (below) gives you a glimpse of my dear Australian friend Sherryl and the plantation house.

I took hundreds of photos last week–one of the benefits of digital cameras–and I’ll post more of them on Facebook this week. Most of the time, this Writer’s First Aid blog deals with the tougher side of the writing life and how to persevere despite everything. So today I wanted to show you the “fun” side of writing that can be yours. Sherryl and I both have novels set on the coast there, s

Only sort of related to libraries, but since it’s National Library Week and coincidentally tax week in the US, I thought you might be interested in reading this article about how and why the IRS is moving to e-filing. To me this touches on some digital divide issues. It’s significantly cheaper for the IRS to process a return submitted online.

It costs nearly $3 to process a paper return, but processing an electronic return costs only about 35 cents. The error rate on paper returns is 20 percent, which consumers must compute and workers must enter into IRS computers, compared with 1 percent for e-filed returns.

People also get their refunds more quickly. There are fewer errors with online returns.

Yet after 20 years of e-file availability, we’re still only seeing 66% of returns filed online. And this is happening even as printed state (NJ, KY) and federal tax forms are becoming less and less available in libraries. Some states aren’t even printing the big tax form notebook anymore. And some states aren’t mailing print forms. Some county library systems haven’t been doing the tax form thing for nearly 20 years. The article examines why. If you are helping your patrons file online, be aware that there are free options available for low-income filers and even discounts for non-low income people if they know where to look. My bank, for example, had a discount on TurboTax’s usual rates available just by me clicking a link on their website.

And I’m trying to track down the copy I had of the letter we got at one of the small rural libraries from the IRS that basically said they wouldn’t be sending us printed tax forms anymore. This was back when we still had a dialup connection and it was mighty inconvenient. Having a hard time remembering when this was. Anyone know?

Ah, spring. The time when flowers bloom and allergies flare and all working people's thoughts turn to....

Taxes.

This isn't a subject I enjoy, and as I prepared to write this post, I realized I wasn't going to be able to thoroughly cover the topic of taxes for writers. I'm not a CPA and I've never worked for the IRS so I'm not even going to try to tell you "all about taxes." I am, however, going to give you a few tips regarding MONEY in general as it relates to your career as a writer.

My thoughts here are based on my own experience. Of the last 16 years my husband and I have been together, one or both of us has been self-employed during 14 of those years. We're pretty well aware of the advantages and the pitfalls of self-employment, and the serious need to stay well in control of your money and especially, avoid tangling with the IRS. Being hit with a huge tax bill on April 15th is a nightmare I don't care to relive.

Now, this financial discussion has to be placed in context of your existing way of handling your finances. Do you and your spouse have a budget that you abide by? Are you already saving for retirement and your kids' college? Are you free of credit card debt? Do you spend at least a couple of hours each month reviewing your finances? If you can answer "yes" to each of these questions, great. If you can't, and/or if you feel your finances are in the least bit out of your control or messy, then I recommend you immediately tackle this problem.

One of the best things Brian and I have done, both for our marriage and our finances, is go through Dave Ramsey's Financial Peace University. We started by reading the book The Total Money Makeover, and several others including The Millionaire Next Door and Start Late, Finish Rich as well as Suze Orman's books. Then we engaged the services of a financial coach and we went through the Ramsey class. It has revolutionized our lives, and never again will we feel insecure about our money. So I highly recommend it.

The first thing I want to impress upon you about handling the financial aspect of your writing career is: Treat it like a business. This means budgeting for your writing expenses before they happen, and tracking them throughout the year. Even if you're not making money yet, you need to do this, to establish in your mind that this is a business, and to prepare you for the day you are making money. How much will you spend on writing conferences, books, memberships, and office supplies? Even if you're not yet to the point where you can write off these expenses, keep track of them.

When you finally begin making income as a writer, the #1 most important thing to remember is that the taxes will NOT be taken from those checks before you get them. It's up to YOU to pay the tax. And I guarantee that you will NOT have the money when April 15th rolls around, plus the IRS will assess penalties if you wait that long. You are responsible for filing estimated ta