Freelance Writer Taxes in Mississippi - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Mississippi?

Yes, absolutely. As a freelance writer in Mississippi, your earnings are subject to both federal and state income taxes. The good news is you can reduce your tax liability through deductions. Here's a breakdown:

• Federal Taxes: The IRS considers your freelance writing income as business income. You'll report this income and related expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct ordinary and necessary business expenses, lowering your taxable income.
• Mississippi State Taxes: Mississippi has a flat income tax rate of 5% for the 2024 tax year (filing in 2025). Your net profit (income minus expenses) from Schedule C will be included in your adjusted gross income (AGI) on your Mississippi state income tax return (Form 82-101). The 5% flat rate applies to all taxable income within that bracket.

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 based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Costs for writing software (like Grammarly, ProWritingAid), editing tools, plagiarism checkers, project management software, and subscriptions to research databases are all 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 deduction 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 trips). 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% (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 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 Mississippi Residents

Don't wait until the last minute! Keeping accurate records of your income and expenses throughout the year will make tax time much easier. Consider using accounting software or a spreadsheet to track everything. Mississippi's filing deadline generally aligns with the federal deadline (typically April 15th), but it's always best to confirm the exact date with the Mississippi Department of Revenue. If you're unsure about any aspect of your taxes, consulting with a qualified tax professional is always a wise investment.