Deduction for consulting services to write a book

[Zoofnoodler]

I paid money to a professional consultant for advice and guidance in writing and promoting a book which was self published and available on Amazon/Kindle. Where do I claim this expense?

[DaveF1006]

It depends. You would need to report the sale of this book as self-employed business income and expense. In addition, since this is a freelance contractor and if you paid more than $600, you must issue a 1099-NEC to that consultant. To create these, you will need to upgrade to Turbo Tax Self-Employed and then follow these instructions.

1. After signing in to TurboTax, open or continue your return.
2. Select Tax Home from the left-side menu (you might already be there)
3. Scroll down and select Your account.
4. Select Create W-2s and 1099s.
5. Follow the instructions.

To report your income and expenses in Turbo Tax.

1. Sign in to TurboTax.
2. Click on the orange Take me to my return button.
3. Go to Income and Expenses
4. Then go to self-employment income>self employment and expenses>start
5. Answer the questions on the screen regarding your business profile. In this case, you are a self-published author when it asks for the description of your business.
6. After your business profile is set.
7. At some point during the interview, it will ask you if you paid more than $600 to a contractor. Here you will say yes if this is the case.

• To enter your income, scroll down to Business Income. Click Start/Update. Click Start/Update next to General Income.
• To enter your business expenses, scroll down to  Business Expenses, Other Common Business Expenses. Click Start/Edit. 

     7. Continue with the onscreen interview.