Graphic Designer Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Nebraska?

Yes, absolutely. As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at both the federal and Nebraska state levels. The IRS considers graphic design income earned as business income, and you'll report this on Schedule C (Profit or Loss from Business) as part of your Form 1040 federal income tax return. This schedule details your income and expenses, ultimately determining your net profit or loss.

Nebraska has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from Schedule C will be added to your other income (if any) to determine your total taxable income for Nebraska. Nebraska then applies its graduated tax brackets to calculate your state income tax liability. You'll use Nebraska Form 1040N to file your state return. The specific brackets change annually, so be sure to consult the Nebraska Department of Revenue website for the 2024 rates when filing in 2025.

Top Tax Write-offs for Graphic Designers

As a graphic designer, you have several opportunities to reduce your taxable income through legitimate business deductions. Here are a few key ones:

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud, Affinity Suite, or other tools essential to your work are fully deductible. This includes monthly subscriptions or one-time purchases.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, drawing tablet, and other equipment used for your graphic design business. For items with a useful life of more than one year, you'll likely need to depreciate the cost over several years, or you may be able to utilize Section 179 deduction or bonus depreciation (consult a tax professional for eligibility).
• 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 available as well.
• Mileage & Transportation: When you drive for business purposes (e.g., client meetings, purchasing supplies), you can deduct 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, etc.). Keep a detailed mileage log!

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). However, you only pay this tax on your net earnings exceeding $400. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Nebraska Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking advantage of all eligible deductions and complying with both federal and Nebraska tax laws. Don't hesitate to consult the Nebraska Department of Revenue website (https://revenue.nebraska.gov/) for the most up-to-date information and forms. Wishing you a profitable and tax-efficient year!