Updated for 2025 (Filing 2024 Taxes)
Yes, absolutely. As a graphic designer operating as an independent contractor (likely), your income is taxable at both the federal and Georgia state levels. The IRS considers income from graphic design work performed independently as business income. You'll report this income 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.
Georgia has a flat income tax rate of 5.49% for the 2024 tax year (filing in 2025). This means regardless of your income level, you'll pay 5.49% of your taxable income to the state. Your federal income tax rate will depend on your total income and filing status, calculated using the federal tax brackets. Georgia also requires you to file a state income tax return (Form 500) to report your income and calculate your state tax liability.
As a graphic designer, you have several opportunities to reduce your tax burden through legitimate business deductions. Here are a few key ones:
When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed graphic designer, you're responsible for both the employer and employee portions – a combined 15.3% self-employment tax. This is calculated on Schedule SE (Self-Employment Tax) and filed with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income, which helps reduce your overall tax liability. This tax applies to net earnings (income after business expenses) over $400.
Tax laws can be complex, and this is a general guide. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking advantage of all eligible deductions and complying with both federal and Georgia state tax regulations. Proper planning can save you significant money and stress during tax season. Good luck, and happy designing!
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