Freelance Writer Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in South Carolina?

Yes, absolutely. As a freelance writer in South Carolina, your earnings are subject to both federal and state income taxes. The IRS treats freelance income as business income, meaning you'll report it on a Schedule C (Profit or Loss From Business) attached to your Form 1040. This schedule allows you to deduct business expenses, reducing your taxable income. You'll calculate your net profit (income minus expenses) on Schedule C, and that amount flows to your 1040.

South Carolina also has a graduated income tax system. This means the tax rate you pay increases as your income increases. For the 2024 tax year (filed in 2025), South Carolina’s tax brackets will determine your state income tax liability. You’ll report your federal adjusted gross income (AGI) on your South Carolina state income tax return (Form SC1040) and calculate your state tax based on the applicable brackets. It's important to note that South Carolina generally follows federal rules regarding deductions, but there can be differences, so staying informed is key.

Top Tax Write-offs 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. This includes a percentage of your mortgage interest or rent, utilities, property taxes, and homeowner's insurance. The IRS offers a simplified method based on square footage, or you can calculate actual expenses.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly Premium), editing tools, plagiarism checkers, and subscriptions to research databases are all deductible business expenses.
• Computer & Equipment: The cost of your computer, printer, desk, chair, and other equipment used for your writing business can be deducted. 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 IRS standard mileage rate for 2024 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. You cannot deduct commuting miles.

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 and 2.9% for Medicare). This is calculated on Schedule SE (Self-Employment Tax) and filed with your Form 1040. However, you do get to deduct one-half of your self-employment tax from your adjusted gross income, which helps reduce your overall tax liability. This tax applies to net earnings over $400.

Closing Tip for South Carolina Residents

Tax laws can be complex, and it’s easy to miss deductions or make errors. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers. Finally, while this guide provides general information, it's not a substitute for personalized tax advice. Consulting with a qualified tax professional in South Carolina can ensure you're maximizing your deductions and complying with all applicable laws. Good luck with your writing and your taxes!