Question

My wife used an independent publishing co to publish a children's book last year, We have several thousand dollars in cost- but did not start an LLC, Can we claim costs?

Forum|Forum|1 year ago
March 26, 2025
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You do not need to have an LLC in order to prepare the self-employed tax form, Schedule C. If her work as an author was a business she operated with the primary purpose of profit, and was engaged in regularly, then she has a business and should report the income and related expenses on Schedule C.

However, if you'd consider the work as an author a hobby, expenses are not allowed. Income can be reported on Schedule E for passive income (royalties) earned as an author.

Here is an article you may find helpful: Reporting Self-Employment Business Income and Deductions