Freelance Writer Taxes in Maryland - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Maryland?

Yes, absolutely. As a freelance writer in Maryland, your earnings are subject to both federal and state taxes. At the federal level, the IRS considers you self-employed, meaning you're running a business – even if it's just you! You'll report your income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule determines your net profit (income minus expenses), which is then used to calculate your income tax liability.

Maryland adds another layer. Maryland has a graduated income tax system, meaning the tax rate increases as your income increases. You'll use Maryland Form 502 to calculate your state income tax. Crucially, Maryland also has county (local) income tax. The rate varies depending on which county you reside in. So, your total Maryland income tax will be the sum of your state tax (based on Form 502) plus your county tax. You'll need to determine your county's tax rate to accurately calculate this portion of your tax liability.

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed is the ability to deduct business expenses, reducing 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 & 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. Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but the standard mileage rate is often simpler and results in a larger deduction.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised by 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'll calculate this tax 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. Self-employment tax applies to net earnings over $400.

Closing Tip for Maryland Residents

Navigating self-employment taxes can be complex, especially with Maryland's state and local income tax structure. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with all applicable tax laws. Don't hesitate to seek professional guidance – it can save you money and headaches in the long run. Good luck with your writing career and happy tax filing!