Freelance Writer Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Idaho?

Yes, absolutely. As a freelance writer in Idaho, all income you earn is subject to both federal and state income taxes. The good news is you can significantly reduce your tax liability through deductions.

Federal Taxes: You'll report your freelance writing income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to detail your income from self-employment and subtract business expenses to arrive at your net profit. This net profit is then added to your other income (if any) to determine your adjusted gross income (AGI).

Idaho State Taxes: Idaho has a flat income tax rate. For 2024, the rate is 5.8%. This means regardless of your income level, you'll pay 5.8% of your taxable income to the state. Your taxable income is your AGI minus any itemized deductions or the standard deduction (more on that later when filing in 2025). Idaho also requires you to file a state income tax return (Form 40) to report your income and calculate your state tax liability.

Top Tax Write-offs for Freelance Writers

As a freelance writer, you have several opportunities to reduce your taxable income. Here are some key deductions:

• 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, based on square footage.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly Premium), editing tools, plagiarism checkers, project management software, and subscriptions to research databases are all deductible business expenses.
• Computer & Equipment: The cost of your computer, printer, desk, chair, and other equipment used for your writing business can be deducted. You can either deduct the full cost in the year of purchase (using Section 179 deduction, subject to limits) or depreciate the cost over several years.
• Mileage & Transportation: When you drive for work-related purposes (e.g., meeting with clients, researching at the library), you can deduct mileage. For 2024, the standard mileage rate is 67 cents per mile. Keep a detailed log of your business miles! Alternatively, you can deduct actual car expenses (gas, oil, repairs, insurance, etc.) but the mileage method is often simpler.

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% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you get to deduct one-half of your self-employment tax from your gross income, which helps reduce your overall tax liability. Self-employment tax applies to net earnings over $400.

Closing Tip for Idaho Residents

Don't wait until the last minute! Keep meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Idaho's tax filing deadline generally aligns with the federal deadline (typically April 15th), but it's always best to confirm the exact date with the Idaho State Tax Commission. Consulting with a qualified tax professional (like myself!) can help you maximize your deductions and ensure you're compliant with all applicable tax laws. Good luck, and happy writing!