Freelance Writer Taxes in Minnesota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Minnesota?

Yes, absolutely. As a freelance writer in Minnesota, all income you earn is 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 federal income tax return. You’ll calculate your profit (income minus expenses) on Schedule C, and that profit is then added to your other income to determine your adjusted gross income (AGI).

Minnesota has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your federal AGI is the starting point for calculating your Minnesota taxable income. Minnesota also has its own forms (like Form M1) to calculate your state tax liability. You'll need to determine your tax bracket based on your filing status (single, married filing jointly, etc.) and income level to accurately calculate your Minnesota income tax.

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed is the ability to deduct business expenses, which can significantly reduce 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. 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 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 either deduct the full cost in the year of purchase (using Section 179 deduction or bonus depreciation, if eligible) 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 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'll calculate this tax on Schedule SE (Self-Employment Tax), which you file along with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income.

This tax applies to net earnings from self-employment over $400.

Closing Tip for Minnesota Residents

Don't wait until the last minute to prepare your taxes! Keep meticulous records of all your income and expenses throughout the year. Consider making estimated tax payments quarterly to the IRS and the Minnesota Department of Revenue to avoid penalties. Minnesota offers several resources for taxpayers, including the Department of Revenue website (https://www.revenue.state.mn.us/). If your tax situation is complex, consulting with a qualified tax professional (like myself!) can save you time, money, and potential headaches.