Agent Kristin has a very detailed, fact-filled post about how to handle your writing income. As she explains, she’s not a financial advisor, so everyone needs to take these tidbits into consideration with their own expert counsel. But still, this is a great post with important details for us all to think about.
Oh, and by the way, you’ll see Kristin has some advice for knowing when to quit your day job. Just as another perspective, one writer I know gave me some advice that I seemed very sound. He said that unless you have a big hit, then for most mid-list authors, 5 books in print seemed to be the magic number where you could reasonably assume a certain standard income. Now, he was working in genre writing at the time, so that guideline might be different for other categories.[via Nathan Bransford.]