Freelance Writer Taxes in Missouri - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Missouri?

Yes, absolutely. As a freelance writer in Missouri, all income you earn is subject to both federal and state income taxes. The good news is, as a business owner, you also have opportunities to reduce your tax liability through deductions.

Federal Taxes: The IRS requires you to report your freelance writing income on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit (or loss). This net profit is then added to your other income (if any) to calculate your adjusted gross income (AGI).

Missouri State Taxes: Missouri has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C will be included in your Missouri adjusted gross income (MAGI), and taxed according to the current Missouri tax brackets. You'll file Form MO-1040 to calculate your Missouri income tax liability. Missouri also allows for itemized deductions, which may further reduce your state tax bill. Be sure to check the Missouri Department of Revenue website for the most up-to-date tax brackets and forms.

Top Tax Write-offs for Freelance Writers

Freelance writers have several unique opportunities to lower their taxable income. Here are a few 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.
• Software & Subscriptions: Costs for writing software (like Scrivener or Grammarly), editing tools, plagiarism checkers, project management software, and any 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 larger purchases, you may need to depreciate the cost over several years, or utilize Section 179 expensing (consult with a tax professional for details).
• 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-related mileage (travel to client meetings, research trips, etc.). You can also deduct parking fees and tolls. You cannot deduct commuting mileage.

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 is filed along with your Form 1040. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income, which helps to reduce your overall tax liability. Self-employment tax applies to earnings over $400.

Closing Tip for Missouri Residents

Tax laws can be complex, and it's easy to miss deductions you're entitled to. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Finally, don't hesitate to consult with a qualified tax professional – like myself – to ensure you're maximizing your deductions and complying with all federal and Missouri tax regulations. A little planning can save you significant money and stress come tax season!