Graphic Designer Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in North Dakota?

Yes, income earned as a graphic designer is absolutely taxable, both at the federal and North Dakota state levels. As a self-employed individual, you're considered a business owner by the IRS and the North Dakota Office of State Tax Commissioner. This means you'll need to report your income and expenses differently than a traditional employee.

Federal Requirements (Schedule C): You'll report your graphic design income and expenses on Schedule C (Profit or Loss From Business) of Form 1040. This form calculates your net profit (income minus expenses), which is then transferred to your Form 1040 to determine your adjusted gross income (AGI). Keep meticulous records of all income received and expenses paid related to your graphic design work.

North Dakota Specific Rules: North Dakota has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. You'll use Form ND-1 to calculate your North Dakota income tax liability. Your federal AGI is the starting point for calculating your North Dakota taxable income, but there may be adjustments. North Dakota also offers various credits and deductions, so be sure to explore those possibilities. The ND tax brackets for 2024 (filing in 2025) will be available on the North Dakota Office of State Tax Commissioner website: https://www.nd.gov/tax/. It's crucial to understand these brackets to estimate your state tax liability accurately.

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 (Adobe Creative Cloud, Affinity Suite, etc.), stock photo subscriptions, font licenses, and any other software essential to your work are deductible.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, scanner, drawing tablet, and other equipment used for your graphic design business. For larger purchases, you may need to depreciate the cost over several years, or potentially utilize Section 179 deduction (consult with a tax professional for this).
• 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 (rent/mortgage interest, utilities, insurance, etc.). There's a simplified method available as well.
• Mileage & Transportation: The 2024 federal standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log documenting the date, destination, and business purpose of each trip. You can also deduct parking fees and tolls.

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 – a total of 15.3% (12.4% for Social Security and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax) of Form 1040. The good news is you only pay self-employment tax on 92.35% of your net profit. Also, 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. Finally, don't hesitate to consult with a qualified tax professional (like myself!) familiar with North Dakota tax laws to ensure you're taking all the deductions you're entitled to and filing accurately. Proper planning can save you significant time and money.