Freelance Writer Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Nebraska?

Yes, absolutely. As a freelance writer in Nebraska, your earnings are subject to both federal and state income taxes. The IRS treats freelance income as business income, meaning you'll report it on a Schedule C (Profit or Loss From Business) attached to your Form 1040. This schedule is where you detail your income and your business expenses. The difference between your income and expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).

Nebraska has a graduated income tax system. This means the tax rate you pay increases as your income increases. For the 2024 tax year (filing in 2025), Nebraska’s tax brackets will determine your state income tax liability. You’ll use Form NE 1040 to calculate your Nebraska income tax. Your federal AGI is a starting point for calculating your Nebraska taxable income, but Nebraska has its own adjustments and deductions. It's important to note that Nebraska generally follows federal tax law, but there can be differences, so relying solely on federal guidance isn't sufficient.

Top Tax Write-offs 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 based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Writing often requires specialized software (e.g., grammar checkers, plagiarism detectors, editing tools) and subscriptions (e.g., research databases, stock photo sites). These are generally fully deductible as business expenses.
• Equipment: Computers, printers, desks, chairs, and other equipment used for your writing business are deductible. 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 expensing or bonus depreciation to deduct the full cost in the year of purchase (subject to limitations).
• Mileage & Vehicle Expenses: When you drive for work – to meet clients, conduct research, or go to the library – you can deduct your mileage. The 2024 standard mileage rate is 67 cents per mile (verify the final official rate from the IRS). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.

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 up to the annual wage base, and 2.9% for Medicare). You report this 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, which reduces your overall income tax liability.

Remember, self-employment tax applies to net earnings over $400.

Closing Tip for Nebraska Residents

Navigating freelance taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Also, Nebraska offers resources on its Department of Revenue website (revenue.nebraska.gov) – familiarize yourself with their specific forms and guidelines. Finally, don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and complying with all applicable laws. A little planning now can save you significant headaches – and money – later!