Freelance Writer Taxes in New York - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in New York?

Yes, absolutely. As a freelance writer in New York, all income you earn is subject to both federal and New York State taxes. The IRS treats freelance income as business income, meaning you'll report your earnings and expenses using Schedule C (Profit or Loss From Business) when you file your federal tax return (Form 1040). You'll calculate your net profit (income minus expenses) on Schedule C, and that net profit is then added to your other income on Form 1040.

New York State also taxes your net profit. New York utilizes 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), New York has several tax brackets. Your net profit from your freelance writing, combined with any other income you have, will determine which tax bracket(s) you fall into and the corresponding tax rate(s) applied. You'll report your freelance income on Form IT-1040, New York State Income Tax Return. You'll also likely need to file Form IT-SE (Self-Employment Earnings) to calculate your New York State self-employment tax (more on that later).

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed is the ability to deduct business expenses, which lowers your taxable income. Here are some key deductions 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 rent or mortgage interest, utilities, and home insurance. There's a simplified method available, or you can calculate the actual expenses.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly), editing tools, plagiarism checkers, project management software, and subscriptions to research databases are all deductible.
• Computer & Equipment: You can deduct the cost of your computer, printer, and other equipment used for your writing business. 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 deduction or bonus depreciation to deduct the full cost in the year of purchase (subject to limitations).
• Mileage & Transportation: When you travel for work (e.g., to meet with clients, conduct research), you can deduct your business mileage. For 2024, the standard mileage rate is 67 cents per mile. Keep a detailed mileage log! You can also deduct expenses for public transportation.

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 tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from self-employment. However, you only pay self-employment tax on earnings over $400.

You'll calculate this tax on Schedule SE (Self-Employment Tax), which you submit with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

Closing Tip for New York Residents

Navigating taxes as a freelancer can be complex, especially in a state like New York with its graduated income tax system. 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 to ensure you're taking all eligible deductions and complying with all federal and New York State tax laws. Proactive tax planning can save you significant time and money in the long run. Good luck with your writing and your taxes!