An author attempted to argue that income from her publisher should be divided between income from writing, which would be subject to self-employment tax, and income related to other items covered by her contract are not subject to self-employment. However, in the case of Slaugther v. Commissioner, TC Memo 2019-65 the Tax Court did not agree with her view.
The taxpayer in question is a well-known and successful author. During the years involved in this case, the taxpayer spent from 12 to 15 weeks engaged in writing. In addition, during those years she spent additional time building as a brand author. The opinion describes a brand author as “one who provides prestige or reliable profits to a publishing house.” She spent significant additional time meeting with publishers, agents, media contacts and others to “protect and further her status as a brand author.”Read More