SCREENWRITER TAXES - 2010 DEDUCTION PLAN

I hope you got a tax refund! Now is the time to look into the future and protect your hard-earned cash during 2010.

*Business - if you're not writing off expenses as an official business, then you should be. Go online and google "ficticious business name statement" and your state, think of a unique name, fill out the form and bam -- it's on paper. Then keep all of your receipts and follow my recent post on filing taxes, that easy. Especially if you have a day job, because owning a business will lower your taxable income (as well as that of your spouse).

*Home - buy one if you can! It's a buyer's market, in some areas you can get a deal, plus write off the mortgage interest on your taxes. If you have a day job and good credit, buy before quitting that job for a full-time screenwriting career -- it's hell getting a loan when you're self employed.

There is a $6500 credit for anyone who contracts for a home by April 30 and closes before June 30. Since we are moving to Houston we might try to make that window, why pass on the cash?

*Renting? - if there's no other choice, then be sure to set up your dedicated space for the home office writeoff!

*Deductions - again, buy what you need, and of quality, but don't overdo it, deductions lower your taxable income but they don't put dollars in your pocket. It's not how much you make, it's how much you spend. In these times it pays to be frugal, and chances are you may not have a choice.

*Move - if you're moving to L.A., or anywhere else, conform to the IRS guidelines so you can deduct at least part of your move. In short, if you "have" to move because of a job, much of it is deductible. What's that mean? Get a job out there, then move, not vice-versa!

*Get Married - don't lose composure, lol. I'm not blogging relationship advice here, but the fact is that married couples enjoy many benefits in the taxation aspect. If you are planning on it anyway, you will be happy to know that you can lower your spouse's taxable income, get on their work healthcare program, and qualify for a higher standard deduction if you're married.

Wishing you profits in 2010!

FADE OUT!