Freelance Writer Taxes in Hawaii - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Hawaii?

Yes, absolutely. As a freelance writer in Hawaii, 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 detail your income and expenses on Schedule C to determine your net profit or loss. This net profit is then added to your other income (if any) to calculate your Adjusted Gross Income (AGI).

Hawaii has a graduated income tax system. This means the tax rate you pay increases as your income increases. Hawaii’s tax brackets for 2024 (filing in 2025) will determine your state income tax liability. You'll use Form N-11 to file your Hawaii state income tax return. Your federal AGI is a starting point for calculating your Hawaii taxable income, but Hawaii has its own specific deductions and adjustments.

Top Tax Write-offs for Freelance Writers

As a freelance writer, you have several opportunities to reduce your taxable income 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 rent or mortgage interest, utilities, property taxes, and homeowner's insurance. There's a simplified method based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly Premium), editing tools, plagiarism checkers, project management software, and relevant online subscriptions (research databases, stock photo sites) are generally deductible.
• Computer & Equipment: You can deduct the cost of your computer, printer, and other equipment used for your writing business. For items with a useful life of more than one year, you'll typically depreciate the cost over several years, or you may be able to use Section 179 expensing or bonus depreciation to deduct the full cost in the year of purchase (subject to limitations).
• Mileage & Transportation: The 2024 federal standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed log of all business miles driven (e.g., to client meetings, research locations). You can also deduct parking fees and tolls. You cannot deduct commuting miles.

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 when calculating your AGI.

Closing Tip for Hawaii Residents

Navigating taxes as a freelancer can be complex, especially with Hawaii’s state-specific rules. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Don't hesitate to consult with a qualified tax professional (like myself!) familiar with both federal and Hawaii tax laws to ensure you're maximizing your deductions and complying with all regulations. Wishing you a productive and tax-efficient year!