Freelance Writer Taxes in Arkansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Arkansas?

Yes, absolutely. As a freelance writer in Arkansas, your earnings are subject to both federal and state income taxes. The IRS treats freelance income as business income, meaning you'll report it on Schedule C (Profit or Loss From Business) as part of your Form 1040. You’ll calculate your profit (income minus expenses) on Schedule C, and that profit is then transferred to your 1040 to determine your adjusted gross income (AGI) and ultimately, your tax liability.

Arkansas has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. For the 2024 tax year (filing in 2025), Arkansas tax brackets will determine your state income tax obligation. You'll use Form AR1000 to calculate your Arkansas income tax. Your federal AGI is a starting point for calculating your Arkansas taxable income, but there may be Arkansas-specific adjustments.

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed is the ability to deduct business expenses, which can significantly reduce your taxable income. Here are some key deductions for freelance writers:

• 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 (mortgage interest or rent, utilities, insurance, etc.). There's 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, project management software, and subscriptions to research databases are all deductible.
• Equipment: Computers, printers, cameras (if used for content creation), and other equipment used for your writing business are deductible. You can often use Section 179 depreciation to deduct the full cost in the year of purchase (subject to limitations) or depreciate the asset over several years.
• Mileage & Vehicle Expenses: When you drive for work (e.g., to meet clients, conduct research), you can deduct either the standard mileage rate (67 cents per mile for 2024 – confirm the final IRS rate at IRS.gov) or your actual vehicle expenses (gas, oil, repairs, insurance, depreciation). Keep a detailed mileage log!

The 15.3% Self-Employment Tax Surprise

Many freelancers are surprised to learn about self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a freelancer, you're both the employer and the employee, so you're responsible for the full 15.3%. This is broken down into 12.4% for Social Security and 2.9% for Medicare. You only pay self-employment tax on earnings over $400.

You'll calculate this on Schedule SE (Self-Employment Tax), which you submit with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Arkansas Residents

Don't wait until the last minute! Keeping accurate records of your income and expenses throughout the year will make tax time much easier. Consider using accounting software or a spreadsheet to track everything. Also, be sure to check the Arkansas Department of Finance and Administration website (https://www.arkansas.gov/departments/finance-and-administration/) for any updates to state tax laws or forms. If you're unsure about any aspect of your taxes, consulting with a qualified tax professional is always a wise investment.