Imagine putting on your tax return under profession: WRITER.
I submitted a story to a money-paying magazine for the first time yesterday. Two cents a word. The story is 2918 words, so if it gets published, I get a cheque for $58.36. Woo hoo.
Will I have to declare the income and pay tax? Of course, there are significant expenses to negatively gear. Late fees on library books not finished within the allotted time; cups of tea purchased on breaks at TAFE; journals purchased and never opened. Legitimate expenses incurred in the development of my writing career!
What’s that you ask? If they pay two cents a word why not write more? Good question. The limit is 5,000 words but the payment is capped at $75. A fortune was never going to be made. Better to let the story happen in the best amount of words.
No doubt the magazine receives many submissions...the odds of selection are slim. If, in a few weeks, it doesn’t get published, you’re welcome to ask for a copy. No charge, because it wasn’t even worth $58.36.
But the tax advice is still relevant, because if this one doesn't get published, another one will.