Tax tips for Substack writers and creators

As a Substack writer or creator, your passion for sharing ideas can turn into a profitable venture. But with income comes tax responsibilities, and navigating them can feel overwhelming. Here’s a quick guide to help you handle taxes as a writer or creator effectively.

1. Understand Your Tax Status

If you're earning from Substack, you're considered self-employed. This means you’ll need to report your earnings on a Schedule C (Profit or Loss from Business) and pay self-employment taxes, which cover Social Security and Medicare.

2. Track Your Income

Keep a detailed record of all payments from Substack and any other income sources like affiliate links, consulting, or speaking gigs. Use tools like spreadsheets or accounting software to stay organized.

3. Deduct Eligible Expenses

As a creator, you can reduce your taxable income by deducting business expenses. Common deductions include:

• Writing Tools: Subscriptions to tools like Grammarly or Canva.

• Equipment: Computers, microphones, or other devices used for your work.

• Home Office: A portion of rent or utilities if you work from home.

• Marketing: Ads or promotions to grow your audience.

• Education: Courses, books, or webinars related to your writing.

  
  

4. Save for Taxes

As a freelancer, taxes aren’t automatically withheld. Set aside around 25-30% of your income for federal and state taxes to avoid surprises. Consider making quarterly estimated tax payments to the IRS

5. 1099-NEC Forms

If Substack paid you over $600 in a calendar year, you should receive a 1099-NEC form. If not, you’re still responsible for reporting your earnings. Check your account for payment records.

6. Separate Personal and Business Finances

Open a dedicated bank account for your writing income and expenses. This makes tracking easier and provides clear records if the IRS ever audits you.

7. Seek Professional Help

Tax rules can be tricky, especially for creatives. A tax professional can ensure you maximize deductions and stay compliant with IRS regulations.

Final Thoughts

Managing taxes as a Substack writer doesn’t have to be daunting. With proper planning, organization, and knowledge of deductions, you can reduce stress and keep more of your hard-earned income. Start early, stay organized, and don’t hesitate to get expert advice when needed.