Believe it or not, many writers are reaching an age where they will have to make decisions about whether or not start taking Social Security.  Some have actually reached full retirement age and others are financially in need of the extra funds while still others want to get their money out of the system as soon as possible.

When and how you take Social Security is a highly personal issue, dependent on whether or not you are still employed, what investment income you may have, and other numerous criteria.  For that reason, your decision is best made with the help of your tax advisor.

I bring this issue to your attention because a writer friend of mine recently ran afoul of Social Security because she forgot to include the income from her writing when making her decisions about Social Security.  How much she made from her “hobby” was not part of her thought process and now I understand her “hobby” is enjoying a very good year.  This will complicate her tax situation.

There is a point when you can earn as much as you like and still collect Social Security benefits. Until you reach it, keep in mind Social Security earning limitations as you plan your retirement and be sure to factor in your writing income.  Yes - royalties are income.  The following is copied from the SSA Web site: Royalties earned in connection with publication of the individual's work or honoraria received for services rendered.

I do not reference specifics here because things are constantly changing - both the laws and your personal financial situation.  Be sure to discuss this with a knowledgeable tax advisor and do not try to navigate these waters without assistance.  Tax law (federal and state) and the rules governing Social Security are too complicated for us mere mortals.