Freelance Writer Taxes in Delaware - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Delaware?

Yes, absolutely. As a freelance writer in Delaware, your earnings are subject to both federal and state income taxes. Here's a breakdown:

• Federal Taxes: The IRS considers freelance writing a business income. You'll report your income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct business expenses, reducing your taxable income. Keep meticulous records of all income received and expenses paid.
• Delaware State Taxes: Delaware has a graduated income tax system. This means the tax rate you pay increases as your income increases. For the 2024 tax year (filing in 2025), the rates are:
  • 0% on taxable income up to $24,500
  • 2.2% on taxable income between $24,501 and $60,000
  • 3.9% on taxable income between $60,001 and $120,000
  • 4.7% on taxable income between $120,001 and $250,000
  • 5.7% on taxable income over $250,000
  You'll use Form 1040-D to calculate your Delaware income tax liability. Your federal adjusted gross income (AGI) is a starting point for calculating your Delaware taxable income.

Top Tax Write-offs for Freelance Writers

Freelance writers have several opportunities to reduce their tax burden through legitimate business deductions. Here are a few key ones:

• 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. There's a simplified method available as well.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly), editing tools, plagiarism checkers, project management software, and relevant online subscriptions (research databases, stock photo sites) are deductible.
• Equipment: Computers, printers, desks, chairs, and other equipment used for your writing business are deductible. You can either deduct the full cost in the year of purchase (using Section 179 deduction, 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, business purpose, and miles driven for each trip. You can also deduct parking fees and tolls.

The 15.3% Self-Employment Tax Surprise

As 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% self-employment tax (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll report this on Schedule SE (Self-Employment Tax). The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall income tax liability. Remember, self-employment tax applies to earnings over $400.

Closing Tip for Delaware Residents

Don't wait until the last minute! Keeping accurate records throughout the year – income, expenses, mileage – will make tax time much smoother. Consider using accounting software designed for freelancers. Delaware's tax laws can be nuanced, so if you have a complex tax situation, consulting with a qualified tax professional (like myself!) is always a wise investment. Wishing you a productive and tax-efficient year!