Freelance Writer Taxes in Ohio - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Ohio?

Yes, absolutely. As a freelance writer in Ohio, all income you earn is subject to both federal and state income taxes. Here's a breakdown:

• Federal Taxes: The IRS considers your freelance writing income as business income. You'll report this income (and related 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.
• Ohio State Taxes: Ohio has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. You'll report your federal adjusted gross income (AGI) on Ohio Form IT 1040 and calculate your Ohio income tax liability based on the current tax brackets. These brackets change annually, so be sure to check the Ohio Department of Taxation website for the most up-to-date information when filing in 2025. Your Schedule C profit (or loss) directly impacts your Ohio taxable income.

Top Tax Write-offs for Freelance Writers

One of the benefits of being a freelancer is the ability to deduct legitimate business expenses. 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 (mortgage interest or rent, utilities, insurance, etc.). There's a simplified method based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly), editing tools, plagiarism checkers, project management software, and relevant online subscriptions are deductible.
• Equipment: Computers, printers, desks, chairs, and other equipment used for your writing business are deductible. You may be able to deduct the full cost in the year of purchase (Section 179 deduction or bonus depreciation, subject to limitations) 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 vehicle. 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 vehicle expenses (gas, oil, repairs, insurance, depreciation), but the standard mileage rate is often simpler.

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 the full 15.3%. This is broken down into 12.4% for Social Security and 2.9% for Medicare. You'll calculate this tax on Schedule SE (Self-Employment Tax), which is filed with your Form 1040. However, you do get to deduct one-half of your self-employment tax from your adjusted gross income, which can lower your overall tax liability.

Important Note: Self-employment tax applies to earnings over $400.

Closing Tip for Ohio Residents

Tax laws can be complex, and it's easy to miss deductions or make errors. Consider using tax software designed for freelancers, or better yet, consult with a qualified tax professional (like myself!) who understands the specific nuances of Ohio and federal tax law. Keeping accurate records throughout the year – income, expenses, mileage – will make tax time much smoother. Don't wait until the last minute! Good recordkeeping and proactive planning are key to minimizing your tax burden and ensuring compliance.