I am a professor and textbook author. In the past I've reported my royalties as self-employment income, and have deducted business expenses from that (home office, computer, etc.). But that means I have to pay self-employment tax. Is there an advantage of reporting my income instead as royalty income? Will I be able to avoid the self-employment tax? On the other hand, I won't be able to deduct expenses, right? Which apparently means I have to weigh the one over the other. Is that correct?
