Freelance Writer Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in North Dakota?

Yes, absolutely. As a freelance writer in North Dakota, your earnings are subject to both federal and state income taxes. The IRS considers you self-employed, meaning you're both the employee and the employer. This has implications for how you report income and pay taxes.

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 deduct business expenses, reducing your taxable income. Keep meticulous records of all income received and expenses paid. The net profit (income minus expenses) from Schedule C is then transferred to your Form 1040 and taxed at your applicable federal income tax bracket.

North Dakota Taxes: North Dakota has a graduated income tax system. This means the tax rate you pay increases as your income increases. You’ll report your federal adjusted gross income (AGI) on Form ND-1, North Dakota Income Tax Return. The net profit calculated on your federal Schedule C will be included in your AGI. North Dakota’s tax brackets change annually, so refer to the North Dakota Office of State Tax Commissioner website (www.nd.gov/tax) for the most up-to-date rates for the 2024 tax year (when filing in 2025).

Top Tax Write-offs for Freelance Writers

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

• 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 Grammarly, ProWritingAid), editing tools, plagiarism checkers, project management software, and any relevant online subscriptions are 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 limitations) or depreciate the cost over several years.
• Mileage & Vehicle Expenses: When you drive for work-related purposes (e.g., meeting with clients, researching at the library), you can deduct either the standard mileage rate (67 cents per mile for 2024 – verify the final IRS rate) or your actual vehicle expenses (gas, oil, repairs, insurance, depreciation). Keep a detailed mileage log if using the standard mileage rate.

The 15.3% Self-Employment Tax Surprise

Many freelancers are surprised to learn about self-employment tax. Because you're both the employee and employer, you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes. This combined tax is 15.3% – 12.4% for Social Security and 2.9% for Medicare – on earnings over $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax) and file it 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 helps reduce your overall tax liability.

Closing Tip for North Dakota Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping excellent records throughout the year – income, expenses, mileage, everything! Consider using accounting software designed for freelancers. Also, North Dakota offers resources for small businesses; explore the North Dakota Small Business Development Center (SBDC) for assistance. Finally, don’t hesitate to consult with a qualified tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all federal and North Dakota tax laws.