Freelance Writer Taxes in Alaska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Alaska?

Yes, your income as a freelance writer is taxable, but the situation in Alaska is simpler than in most states. While Alaska has no state income tax, you are still responsible for federal income tax on your earnings. This means you'll need to report your income and expenses to the IRS.

The primary form you’ll use to report your freelance writing income and expenses is Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct your business expenses, reducing your taxable income. Keep meticulous records of all income received and expenses paid throughout the year. This is crucial for accurate tax filing and in case of an audit.

Because Alaska doesn’t have a state income tax, you won’t file a state income tax return. However, you are still subject to federal taxes, including income tax and self-employment tax (discussed below).

Top Tax Write-offs for Freelance Writers

As a freelance writer, you have several opportunities to reduce your tax liability through legitimate business deductions. Here are a few key write-offs:

• Home Office Deduction: If you use a portion of your home exclusively and regularly for your writing business, you can deduct expenses related to that space. This includes a percentage of your mortgage interest or rent, utilities, property taxes, and homeowner's insurance. The IRS offers a simplified method based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly), editing tools, plagiarism checkers, and subscriptions to research databases are deductible.
• Equipment: Computers, printers, cameras (if used for content creation), and other equipment used for your writing business are deductible. You can often deduct the full cost in the year of purchase (using Section 179 deduction or bonus depreciation, subject to limitations) or depreciate the cost over several years.
• Mileage & Transportation: The 2024 federal standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log documenting the date, destination, and business purpose of each trip. Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, etc.), but the standard mileage rate is often more beneficial.

The 15.3% Self-Employment Tax Surprise

Many freelancers are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes, and you pay the other half. As a freelancer, you are both the employer and the employee, so you're responsible for the full 15.3% (12.4% for Social Security and 2.9% for Medicare).

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings (your profit after deducting business expenses from your income on Schedule C). There's also an income limit for the Social Security portion of the tax; for 2024, it's $168,600. Earnings above this amount are not subject to the 12.4% Social Security tax. You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Alaska Residents

As an Alaska resident, you benefit from the lack of state income tax, but diligent record-keeping is still essential for maximizing your federal tax savings. Consider using accounting software or working with a tax professional to ensure you're taking advantage of all eligible deductions. Don't wait until the last minute – start organizing your income and expenses now to make tax season less stressful. Remember, the IRS provides numerous resources on their website (irs.gov) to help self-employed individuals.