Graphic Designer Taxes in Montana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Montana?

Yes, absolutely. As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at both the federal and Montana state levels. The IRS requires you to report your business income and expenses using 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 adjusted gross income (AGI).

Montana has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. For the 2024 tax year (filed in 2025), Montana’s tax brackets will determine your state income tax liability. You’ll file Form 2 (Montana Individual Income Tax Return) to calculate and pay your Montana state income tax. Your federal AGI is a starting point for calculating your Montana taxable income, but Montana has its own adjustments and deductions.

Top Tax Write-offs for Graphic Designers

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

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud, Affinity Suite, or other tools are fully deductible. This includes monthly subscriptions or one-time purchases.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, scanner, drawing tablet, and other equipment used for your business. You can either deduct the full cost in the year of purchase (using Section 179 deduction or bonus depreciation – consult with a tax professional for eligibility) or depreciate the cost over several years.
• Home Office Deduction: If you use a portion of your home exclusively and regularly for your graphic design business, you may be able to deduct expenses related to that space, such as a portion of your rent/mortgage, utilities, and home insurance. There's a simplified method based on square footage, or a regular method requiring detailed calculations.
• 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 (client meetings, supply purchases, etc.). You can also deduct parking fees and tolls. You cannot deduct commuting miles.

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 self-employed graphic designer, you're responsible for both the employer and employee portions, totaling 15.3%. This is calculated on Schedule SE (Self-Employment Tax) and filed with your Form 1040. However, you do get to deduct one-half of your self-employment tax from your gross income, which helps reduce your overall tax liability. The $400 earnings threshold applies – you only pay self-employment tax on profits over $400.

Closing Tip for Montana Residents

Navigating taxes as a self-employed individual can be complex. Montana’s tax laws, combined with federal regulations, require careful attention to detail. 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 laws. Don't hesitate to reach out if you have specific questions or need personalized guidance for your graphic design business in Montana.