Freelance Writer Taxes in Pennsylvania - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Pennsylvania?

Yes, absolutely. As a freelance writer in Pennsylvania, 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.
• Pennsylvania State Taxes: Pennsylvania has a flat income tax rate of 3.07% for the 2024 tax year (filing in 2025). You will report your Schedule C profit on your PA-1000 form. Unlike some states, Pennsylvania does not offer a deduction for federal income tax paid. Therefore, your federal adjusted gross income (AGI) and Schedule C profit directly impact your PA tax liability.

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed 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 (research databases, stock photo sites) 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 limits) or depreciate the cost over several years.
• Mileage & Transportation: The 2024 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 locations). 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% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare).

You'll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall tax liability. Remember, self-employment tax applies to earnings over $400.

Closing Tip for Pennsylvania Residents

As a Pennsylvania resident, meticulous record-keeping is crucial. Keep detailed records of all income and expenses, including receipts, invoices, and mileage logs. Consider using accounting software or working with a tax professional to ensure you're taking all eligible deductions and complying with both federal and Pennsylvania tax laws. Don't wait until the last minute – proactive tax planning can save you time, money, and stress.