Tax Write-Offs For Food Writers and Recipe Developers
Some unofficial advice
There’s an episode in Schitt’s Creek where David Rose buys himself luxurious sheets and skincare because, “It’s a write-off.”
”Who pays for it?” his dad asks.
“Nobody. You write it off,” David says.
Hmmmmm….not exactly. I mean, that’s not right at all.
I wasn't always the most organized person when it came to taxes. It took me a few years to think about my freelance work as a "business" and nine years to finally set up a business account. (You're supposed to have a separate business account right away.)
In my early days as a freelancer, I hired an accountant (a tax write-off!) to help me at tax time, and over the years, I've learned a lot about what I can deduct. (Outfits for book photoshoots? No. But ingredients and dishes to use as props? Yes.)
I've talked to a lot of freelancers who either don't know or forget that they can deduct certain expenses from their income. And then they end up paying more than their fair share at tax time.
Or they go in the other direction and write off every restaurant meal from the past year. Then, when they get audited by the IRS, they owe thousands in back taxes. Yikes!
I can’t give you official tax advice. You’ll need a tax pro for that, especially because tax laws are always changing, and every person's situation is different.
But I can give you a guide along the lines of "what Kristin does" and "what Kristin understands to be true."
First, what is a tax write-off?
A tax write-off isn't a reimbursement from the government, as David seems to think in Schitt's Creek when he opens his boutique. You still pay for the items. But when you write them off, you reduce your taxable income.
So let's say you earned $50,000 as a freelancer and have $15,000 in legitimate expenses. You'll be taxed on the remaining $35,000 at a rate based on your household income. (So, if you have a partner who earns a lot more money, your income will be taxed at a higher rate than if it were just you.)
What are some of the things you might write off as a food writer or recipe developer?
They tend to fall in a few different categories, including expenses that are necessary for my job, expenses that help me do my job better, expenses that help me market my business, and expenses where I'm extra careful.
Necessary expenses
Ingredients for recipe testing. You can write off all ingredient costs that aren't reimbursed by clients, including for your blog if you earn money from it or plan to, soon. Or if you use your blog for marketing your other services.
Kitchen equipment for recipe development and testing: If a recipe testing job requires me to purchase a certain type of pan, I write that off. (Kitchen tools just for personal use are probably not tax deductible.)
Transaction fees. When someone purchases a course from me, I pay fees Stripe, the payment provider, so I write those off.
Office supplies. Paper, printer toner, pens, etc. All write-offs. Your computer likely is, too.
Health insurance premiums. If you aren’t insured through a job or a partner, you can write off your health insurance premiums as business expenses.
Software. Publishers often require that you use Microsoft Word, which now has a subscription fee. I definitely write that off.
Mileage: If you drive to meet a client, pick up ingredients, or mail a business-related package, you can probably deduct the car mileage based on the standard mileage rate set by the IRS.
Expenses to help me do my job better
Books for research. When I write books with people, I read a lot of books to help me go deeper in understanding their world. Sometimes, I get them from the library, but I often buy them to have them throughout the process. And I deduct these.
Subscriptions. I subscribe to certain magazines, Substacks, and memberships that keep me up-to-date on my industry and help with networking.
Conferences. If I go to a conference like IACP (International Association of Culinary Professionals), and I write off the conference fee.
More software. I pay for the upgraded version of Canva to help me with graphics for my website and Instagram. There are apps I use to help with photos and video, too. All write-offs.
Contractors. For Everything Cookbooks, we have an excellent editor, Abby Cerquitella, who we pay. We've paid for a graphic designer to help us as well. I pay someone to help me load up emails. If you pay recipe testers, their fees are deductible. (To deduct the amounts you pay people, they must fill out a W-9 and you must issue them a 1099 if you paid them more than $600 in a tax year.)
Photography equipment. While I'm not a photographer, I do take photos for my paid newsletter and have in the past for clients. So I generally expense equipment like tripods, lighting, and photography backgrounds.
Professional services. Did you hire an accountant or lawyer or business coach? Their fees are tax deductible.
Classes, workshops, and courses. This is one of my favorite write-offs. I'm a lifelong learning enthusiast and often buy courses to help me level my game. I write off all of these unless they're unrelated to my work.
Marketing and promotional expenses
Website fees. Your website helps you market yourself. Any fees related to your website, whether the design or hosting, is deductible.
Ads. If you run any kind of advertising for your services, you can deduct these expenses.
Book promotion expenses. If you host book-signing events and incur costs, you can generally deduct these.
Where I'm very careful
Restaurants. To write off restaurant meals, you need to be eating out for business reasons — perhaps on a business trip or entertaining a client. In the past, you were supposed to only write off 50% of these meals. In 2022, I believe there are times when you can expense 100%. (It's an incentive to support the restaurant industry.) Still, I've heard of some food writers getting into trouble because they write off 100% of every meal as research, and the IRS doesn't see restaurant meals as research as legit. Yikes! I tread carefully here.
Travel. I'd love to think that every trip I take is "research" for my work because it exposes me to new flavors that might end up in a recipe. But from a tax deduction standpoint, I doubt the IRS would see it that way. I tend to be pretty conservative with how I write off travel and only deduct expenses that are directly related to income or have an express business purpose.
Travel to conferences: Yes, I deduct my plane ticket or mileage if I drive. I also deduct the hotel room. If my partner joins, I don't deduct his plane ticket.
Travel to meet a client: If, for some reason, the client I'm working with is not paying for the travel, yes, I will deduct this.
Travel in general: Even though I might Instagram my travel, and you might argue Instagram is a marketing tool for my business, I don't deduct these travel expenses. If I were to write a story afterward, I'd only deduct the parts necessary to complete the story. If I were a travel influencer, I'd consult an accountant with this expertise.
Business use of home. This is where having an accountant can be so helpful because they can help you calculate how to do this.
Home goods. If I buy something explicitly for a photo shoot and then give it away, I might write it off. If I buy it for a shoot and keep it for personal use, I probably wouldn't. But ask a tax professional about this one.
Can I write off these expenses if I have a regular job (and get a W-2)?
In general, not really. You can ask a tax pro about it, but I'm focusing on freelance/business income expenses.
Should I rush to spend more money before the end of the year for more tax write-offs?
If you need all or most of the money from your freelance work or business to pay for your living expenses, then no, you shouldn't rush to spend it. But, if you feel like you have extra cash and there are things you want or need for your business or if you suspect your earnings might push you into a higher tax bracket, it could be wise to spend a little money to bring your taxable income down.
How should you spend your money at the last minute?
Is there a certain kind of equipment that would make your job easier? Are there professional groups you've always wanted to join? Are there courses you've been thinking about taking?
These are all good ways to invest.
these might help, too!
Cookbooks and Money on Everything Cookbooks