Freelance Writer Taxes in New Jersey - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in New Jersey?

Yes, absolutely. As a freelance writer in New Jersey, 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: You'll report your freelance writing income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to calculate your net profit (income minus expenses). This net profit is then added to your other income (if any) to determine your adjusted gross income (AGI).

New Jersey Taxes: New Jersey 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 New Jersey taxable income, and taxed according to the current year’s brackets. For 2024 (filing in 2025), you’ll use the New Jersey Division of Taxation forms to calculate your state income tax liability. Be sure to check the NJ Division of Taxation website for the most up-to-date brackets and forms.

Top Tax Write-offs for Freelance Writers

As a freelance writer, you can significantly reduce your taxable income by claiming eligible business expenses. Here are some 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, Grammarly), editing tools, plagiarism checkers, project management software, and subscriptions to research databases are all deductible.
• Equipment: Computers, printers, desks, chairs, and other equipment used for your writing business are deductible. You can either deduct the full cost in the year of purchase (using Section 179 deduction, subject to limits) or depreciate the cost over several years.
• Mileage & Transportation: The 2024 federal standard mileage rate is 67 cents per mile for business use of your car. Keep a detailed log of all business miles driven (e.g., to client meetings, research trips). You can also deduct parking fees and tolls. Alternatively, you can deduct actual car expenses (gas, oil, repairs, insurance, depreciation), but the standard mileage rate is often more beneficial.

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 paying both portions. This combined rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C. However, you only pay self-employment tax on earnings over $400. You'll calculate this tax on Schedule SE (Self-Employment Tax), which is also filed with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income.

Closing Tip for New Jersey 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 or working with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with both federal and New Jersey tax laws. Don't hesitate to reach out if you have specific questions or need personalized guidance. Good luck with your writing and your taxes!