Freelance Writer Taxes in Oregon - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Oregon?

Yes, absolutely. As a freelance writer in Oregon, all income you earn is subject to both federal and Oregon 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).

Oregon State Taxes: Oregon has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C flows to your Oregon state tax return (Form OR-40) and is taxed according to the current Oregon tax brackets. For the 2024 tax year (filing in 2025), be sure to consult the Oregon Department of Revenue website (https://www.oregon.gov/dor) for the most up-to-date tax brackets and rates. Oregon also allows for itemized deductions, which can further reduce your taxable income.

Top Tax Write-offs for Freelance Writers

As a freelance writer, you have several opportunities to lower your tax bill. 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 any relevant online subscriptions are deductible.
• Equipment: Computers, printers, desks, chairs, and other equipment used for your 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 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, etc.) 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 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). However, you only pay self-employment tax on 92.35% of your net earnings. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your AGI.

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

Closing Tip for Oregon Residents

Oregon’s tax laws can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with both federal and Oregon state tax regulations. Proactive tax planning can save you significant money and stress come tax season.