@PotomacBob
When describing characters, how do you handle race?
When I saw the topic on the forum, I thought it was about Alien Races that often occur in science fiction, and/or fantasy stories. There, I tend to use those particular peoples' term for Human Being. As in Deutsch (German), but also Souix, Greek, and Chinese, to mention a few who refer to themselves as Humans, and all else as animals or at least "non-humans"...
Denoting skin color, I use a modified form of the Chicago Style Guide: Black, Asian, Latino, White, Egyptian, Persian, and a few others that don't fit "neatly" into a skin color definition.
Since most of my stories are in a military setting, in modern times there are Official Standards, and often consequences for failing to adhere to those standards. Rarely, if it is a plot point, some characters may use racial slang; sometimes that is derogatory. Negro is still the official US government definition of many people with Black or brown skin tones; I sometimes use that, if a character is being described and that makes sense in context. In some of my stories the skin color of individuals matters when they are deployed to foreign lands, and if they "blend in" or don't.
I have a story set before and during the Second World War, and I occasionally use Colored that was used then. As in the NAACP (National Association of Colored People). It was both a government term, and self-identification. So, I use that in context of the times. Some units of the US Army were so Identified: 555th Parachute Infantry Battalion (Colored) or the 41st Regiment of Infantry (Philippine Scouts).
In the WWII story the racial slurs used are "Square Head" (Germans and Scandinavians), Krauts (Germans), Wop (Italian), Mick (Irish, and sometimes Scottish), among others, and after 7 December 1941 Japs.