Freelance Writer Taxes in New Hampshire - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in New Hampshire?

As a freelance writer, your income is taxable at the federal level, but generally not at the state level in New Hampshire. Here's a breakdown:

• Federal Taxes: The IRS requires you to report your freelance writing income on Schedule C (Profit or Loss From Business) as part of your Form 1040. You'll calculate your profit (income minus expenses) on Schedule C, and that profit is added to your other income when calculating your adjusted gross income (AGI).
• New Hampshire Taxes: New Hampshire has a unique tax system. It does not tax earned income, such as wages or freelance income. New Hampshire taxes only interest and dividends. Therefore, your profit from freelance writing, as reported on Schedule C, will generally not be subject to New Hampshire state income tax. However, it's crucial to stay updated on any potential changes to New Hampshire tax law.

Top Tax Write-offs for Freelance Writers

Maximizing your deductions is key to minimizing your tax liability. Here are some common 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 available as well.
• Software & Subscriptions: Costs for writing software (like Scrivener or Grammarly), editing tools, plagiarism checkers, and subscriptions to research databases are deductible business expenses.
• 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 deduction (consult 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.

The 15.3% Self-Employment Tax Surprise

Even though New Hampshire doesn't tax your freelance income, the federal government does through Self-Employment Tax. This is essentially Social Security and Medicare taxes for the self-employed. You'll report this on Schedule SE (Self-Employment Tax).

The combined rate is 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You only pay self-employment tax on profits over $400. Importantly, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).

Closing Tip for New Hampshire Residents

New Hampshire's favorable tax environment is a great benefit for freelancers! However, don't let the lack of state income tax lull you into neglecting your federal tax obligations. Keep meticulous records of your income and expenses throughout the year. Consider using accounting software or working with a tax professional to ensure you're taking all eligible deductions and complying with all IRS regulations. Accurate record-keeping will save you time and potential headaches during tax season.