Hi all you Independent Writers out there! It’s that nasty time of the year when you need to get all your 1099-MISC and W-2 forms together. As an Independent Writer on the internet, you most likely made more than $400 in 2008 and now must pay the piper. What a shock it was to me to learn that I would have to pay almost half of what I earned through Google Adsense. Maybe this is because I also have a full time job and did not plan correctly for this. Whatever, it’s a shame that a wonderful hobby like writing has also set me back in early 2009. Let’s hope we can all continue to make money this year to prepare for the 2009 taxes next year.

I was not really sure what forms I would need to prepare with this added income. All my life I only had to claim my usual full time income. So after much searching, I have found the proper channels to prepare my 2008 taxes and I’d like to share this with all of you who were also a bit lost.

First, you will need to fill out Form C-EZ. You can get this form here:

http://www.irs.gov/pub/irs-pdf/f1040sce.pdf

In this form, you will need to provide a 6 digit code in Section B. I used 711510, which is the code for Independent Writers. If you are not sure of this code, or want to check for yourself, go to Pages 116-118 of this:

http://www.irs.gov/pub/irs-pdf/i1040.pdf

Form C-EZ is also where you can deduct any expenses used in your business, up to $5000. I deducted my monthly Roadrunner fees. After filling out this rather simple form, you will need to complete Form SE, and you can find this form here:

http://www.irs.gov/pub/irs-pdf/f1040sse.pdf

Finally, you are ready to fill out your 1040 Form. This is found here:

http://www.irs.gov/pub/irs-pdf/f1040.pdf

On this form, you will need to put Line 3 from Form C-EZ into Line 12 of Form 1040, and Line 5 from Form SE into Line 57 of Form 1040. You will also have to check the tax tables on Pages 68-79 here:

http://www.irs.gov/pub/irs-pdf/i1040.pdf

Once you find the correct tax bracket that you fit, you must put this amount on Line 44 of Form 1040. Everything else should be self-explanatory (yeah right!). If you need to pay the IRS, it is highly recommended that you use Form 1040-V to send your payment. This form is found here:

http://www.irs.gov/pub/irs-pdf/f1040v.pdf

At this point, you should be all set…..with your Federal Taxes that is. As for the State Taxes, each State is different and I could only help you with New York and that is only after I find all that information. I realize this will not fit everyone’s needs, but I’m guessing it will help the majority. Good luck and Happy April 15th!

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