Tax Planning Now: What Authors & Small Business Owners Must Do Before Year-End

“Welcome back, everybody. You’re tuned in to The Hollis Chapman Show, the show where authors and small business owners get the real-world strategies to grow, protect, and monetize their ideas.

Today’s show is right on time, because we’re talking about a topic that can either save you thousands… or cost you thousands if you ignore it. And that is year-end tax planning.

Listen, if you’re an author, a creator, an entrepreneur, a coach, a consultant — whatever your lane is — the last two months of the year are not just about holidays. They are prime time for making money-saving moves.

So today, we’re diving into the strategies, deductions, and smart decisions you can still make before December 31st to lower your tax bill and keep more of the money you’ve earned. You ready? Let’s get into it.”

“If you’re an author or business owner, you don’t get a paycheck with taxes taken out. The IRS expects you to manage that yourself. And if you don’t plan ahead, you’re leaving money on the table.”

Why Authors & Small Businesses Get Taxed Harder

• 1099 income = no taxes withheld
• High audit risk in creative professions
• Poor record-keeping = money lost
• Most wait until tax season instead of planning in Q4

“If you’re an author or business owner, you don’t get a paycheck with taxes taken out. The IRS expects you to manage that yourself. And if you don’t plan ahead, you’re leaving money on the table.”

The Big 6 Year-End Moves

1. Take Last-Minute Deductions

• Home office
• Computer & tech upgrades
• Marketing, editors, designers
• Travel for book events or client meetings
• Subscriptions (software, hosting, AI tools, etc.)
• Take Last-Minute Deductions
• Hollis:
• “This is the moment to make those business purchases and lock in deductions for this year. Now is the time.
• If you’re an author, this includes:
• Laptops, microphones, cameras
• Software like Scrivener, Canva, editing tools
• Cover designers, editors, illustrators
• Audiobook production
• Website hosting, domain names
• Ads and marketing expenses

• For business owners:
• Computers
• Mileage
• Subscriptions
• Marketing campaigns
• Training courses
• Equipment upgrades
• If it helps you create income — it’s usually deductible.
• And if you know you’re going to buy it in January, consider buying it now while it still counts for this tax year.”

Pre-Pay Expenses

Pay January bills in December to lower this year’s income.

Set Up a Retirement Plan

• SEP IRA
• Solo 401(k)
  A huge tax shelter for authors with royalty or consulting income.

4. Track Every Mile & Every Receipt

Mileage deduction is one of the most missed ones.

5. Consider Hiring Family Members

A legitimate way to shift income into lower brackets.

6. Review Quarterly Estimates

Avoid penalties by making a final Q4 payment.

Special Section for Authors

• Deducting research expenses
• Audiobook production costs
• Cover design + editing = tax deductible
• Book purchases for research
• Writing conferences, book expos, online writing courses
• Everything you invest into producing a book is part of your cost of doing busine. Authors forget this — and it costs them.

“If you’re an author or small business owner, tax planning doesn’t have to be scary. It just has to be timely. And right now is the moment to act. The tax code rewards people who prepare, not people who wait.”

Set Up a Retirement Plan

“Authors and entrepreneurs get access to one of the best tax shelters in the tax code:
The Solo 401(k) or the SEP IRA.

If you had a strong year financially, this is one of the biggest money savers you can use.
With a Solo 401(k), you can often tuck away tens of thousands tax-free depending on your income.

Even if money’s a little tight, starting the account this year gives you options.
Bottom line: This is not just retirement planning — it’s tax planning.”

Track Every Mile & Every Receipt

Hollis:
“This one’s not flashy, but it’s powerful.
Mileage, travel, meals, supplies — they all add up.

If you drove to:

• A book event
• A writing group
• A client meeting
• A vendor
• A conference
  That mileage is money.

If you haven’t tracked it, start now.
Even recreating mileage for the last few months can save you more than you think.”

Consider Hiring Family

Hollis:
“Now let me be very clear:
Hiring a family member must be real work for real pay. But if your child helps with:

• Filing
• Social media
• Packing orders
• Camera work
• Editing
  That is legitimate work.

Paying a family member can move income from your higher tax bracket into their lower one.
Again — this is legal, this is common, and this is powerful when done correctly with documentation.”

Special Tips Just for Authors

Hollis:
“Now let’s talk directly to my authors out there.
Some of the best deductions are writing-related, but most authors don’t even know they can take them.”

• Research Expenses

“Any books, courses, movies, or materials you bought for research?
If it supports the writing — it’s deductible.”

• Editing, Proofreading, and Cover Design

“These are production costs.
If you spent money to make the book — you can deduct it.”

• Audiobooks

“Paying narrators, producers, or engineers?
That counts too.”

• Author Travel

“Book expos, signings, conferences, writing retreats, and even travel for research — all potential deductions.”

• Marketing Costs

“Ads, email tools, courses, software — these are often the largest deductions authors skip.”

Review Quarterly Estimates

“And finally, take a look at your quarterly estimated taxes.
Most creators don’t pay enough throughout the year and end up with penalties.
A final Q4 payment can clean that up and save you from extra IRS charges.

If you don’t know whether you’re on track — ask your accountant or use your bookkeeping app to check your numbers. It’s worth it.”

Final Thoughts

“You don’t have to be perfect.
You just need to be intentional.

The tax code rewards people who plan early.
And we are still in the perfect window to make smart moves.

So don’t wait until April when everything is locked in.
Take action now so you can enter the new year with peace of mind, clean books, and a lower tax bill.”

Call-to-Action

“If you want help organizing your receipts, planning deductions, or building a tax-smart business strategy, reach out to me at mail@eastvalleymarketing.com. And don’t forget to subscribe on Roku to catch all of our new episodes and video content.”