Everything To Know About Marketing & Business Strategy
  • HOME
    • Home Furnishings "STUFF"
    • About Us
    • Commitment To Our Veterans
    • Free Marketing Analysis - No Strings-No Sales Pitch
  • Social Platforms
  • Technologies
  • Marketing Integration
    • Free Marketing Analysis - No Strings-No Sales Pitch
    • How Social Media is Changing Brand Building & Retail
    • Brick & Mortar Retail Touch Points Exposed
    • The Secret to a Good Mobile Website for Retailers
    • U.S. Newspaper Revenues Hit 50-Year Low in 2012
    • Future Retail Trends-2015
    • The Power Of Gen Y in Today’s And Tomorrow's Workplace [INFOGRAPHIC]
    • Brick And Mortar Retailers May Become Extinct If They Do Not Embrace The New Economy >
      • A Retailer's Guide to Webrooming
      • INFOGRAPHIC - Do men and women shop differently online?
    • How Big Is Amazon {INFOGRAPHIC}
    • Why retailers must excel in the 4 Cs instead of just the 4 Ps
    • E-tailers: Tips, Trends, and Reasons E-Commerce is About to Boom
    • Is Texting The New Marketing Engagement Frontier
    • Which Social Network's Users Make the Most Money? [INFOGRAPHIC]
    • 120 Awesome Marketing Charts, Graphs and Statistics
    • What It Costs A Business To Do Social Marketing
    • The NEW Retail Demographics
    • More Shoppers Reach for Mobile to Browse, Buy >
      • Online Reviews Influence Shoppers Most, but Print Catalogs Trump Social Networks
      • How Shoppers Use Smartphones to Save Money
      • Age, Gender Determine 'Go-To' Devices
  • MY RETAIL RANTS BLOG
  • CONTACT US
    • free marketing help desk

4 Tips to Documenting Your Book Advance

One of the best moments for a writer is to get a manuscript accepted. The second best moment is getting an advance.

On average, a book advance runs between $5000 - $20,000, which is broken out across several payments.

You want to make sure you keep stellar records of your advance payments for tax purposes. How should you document your book advance? Keep reading to find out.

1. Know What Publishers Will Do

Do you know how an advance works? A book advance is a way for publishers to pay you for royalties before your book is published. This is based on what the publisher thinks how many copies will be sold.

Your book may do better than previous estimates. In that case, when your book sells above your advance, you’ll receive royalty checks.  
Publishers will treat writers like an independent contractor. You’ll receive a check for the advance, which will probably be sent via check or direct deposit.
​
If it’s sent by direct deposit, you’ll have no record of this income until the end of the tax year. In January before you pay taxes, you’ll get a 1099-MISC form from the publisher. That will detail the total amount of payments made to you.

2. Understand Tax Obligations

The first thing to note is that if an employer gave you a 1099-MISC, you can bet that they reported your income to the IRS. You have to pay taxes on income above $600.

In a 9-5 job, your employer withholds money for state taxes, federal taxes, social security, and Medicare payments.
​
Your publisher is unlikely to do that because you’re technically an independent contractor. You’ll be responsible for the taxes yourself. You’re going to have to pay 15.3% for social security and Medicare, plus your state, local, and federal income taxes.

3. Prove Income Without 1099-MISc

When you are applying for a loan, credit card, or an apartment, people want to see proof of income. How can you do without a 1099-MISC?

You can create paystubs using PayStubCreator to do that. With this type of tool, you’ll also be able to estimate how much you should withhold for your taxes.

4. Set Aside Funds for Taxes

​The best way to prepare for tax season is to document your book advance and set aside funds for taxes. You don’t want to spend that money and think you can make it up later. Set up a separate savings account and put that money aside as soon as you get paid.

Documenting a Book Advance is Easy

You finally made it as an author. You got a book deal and an advance on royalties. You’re excited, but before you go on a spending spree, you need to take a couple of things into account.

You will have to pay taxes on your book advance, which makes it all the more important to document your payments. You can create paystubs for yourself until you get a 1099-MISC from your publisher. That will enable you to estimate your taxes and prove your income.
​
Do you want more lifestyle tips? Check out this site again for more helpful articles.
Picture

home

About Us

Contact us

commitment to our veterans

social marketing platforms

marketing integration


technologies for retailers

home furnishing's industry

free marketing help desk

our RETAIL rants blog


the beginners guide to marketing

Picture



​​content provided by free

​napier marketing group, inc.


CATEGORY EXPERIENCE

Home Furnishings • Consumer Durables • Retail • Trade • Consumer Products • Printing-Publication • Technology • Entertainment Partnerships • Furniture Stores  •  
​Social • Digital • Business Transformation – Corporate Turnaround • Marketing • Sales & Sales Management • Business Development • Brand Management • Home Furnishing Marketing • Furniture Retail Strategy • Marketing, Advertising & Promotion  • Staff Management • Product Positioning • Strategic Partnerships • Product Pricing • Trade Show Management & Presentations • Strategic Planning • Marketing Communications • Product Differentiation • Marketing Strategy / Execution • Online Marketing ​

​Napier Marketing Group
​is Located In Ft. Myers, Florida
billnapier@napiermkt.com
​612.217.1297


Picture

© 2007 – 2022 Copyright Napier Marketing Group Inc. All Rights Reserved. No use, publication or reuse is permitted without express written authorization.
Website design and maintenance provided by 
Napier Marketing Group Inc.
Ft. Myers, Florida
- www.napiermkt.com - 
- billnapier@napiermkt.com -
- (612-217-1297) -

Picture
Contact Us
  • HOME
    • Home Furnishings "STUFF"
    • About Us
    • Commitment To Our Veterans
    • Free Marketing Analysis - No Strings-No Sales Pitch
  • Social Platforms
  • Technologies
  • Marketing Integration
    • Free Marketing Analysis - No Strings-No Sales Pitch
    • How Social Media is Changing Brand Building & Retail
    • Brick & Mortar Retail Touch Points Exposed
    • The Secret to a Good Mobile Website for Retailers
    • U.S. Newspaper Revenues Hit 50-Year Low in 2012
    • Future Retail Trends-2015
    • The Power Of Gen Y in Today’s And Tomorrow's Workplace [INFOGRAPHIC]
    • Brick And Mortar Retailers May Become Extinct If They Do Not Embrace The New Economy >
      • A Retailer's Guide to Webrooming
      • INFOGRAPHIC - Do men and women shop differently online?
    • How Big Is Amazon {INFOGRAPHIC}
    • Why retailers must excel in the 4 Cs instead of just the 4 Ps
    • E-tailers: Tips, Trends, and Reasons E-Commerce is About to Boom
    • Is Texting The New Marketing Engagement Frontier
    • Which Social Network's Users Make the Most Money? [INFOGRAPHIC]
    • 120 Awesome Marketing Charts, Graphs and Statistics
    • What It Costs A Business To Do Social Marketing
    • The NEW Retail Demographics
    • More Shoppers Reach for Mobile to Browse, Buy >
      • Online Reviews Influence Shoppers Most, but Print Catalogs Trump Social Networks
      • How Shoppers Use Smartphones to Save Money
      • Age, Gender Determine 'Go-To' Devices
  • MY RETAIL RANTS BLOG
  • CONTACT US
    • free marketing help desk