Graphic Designer Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in South Carolina?

Yes, absolutely. As a graphic designer operating as an independent contractor (or sole proprietor), your income is taxable at both the federal and South Carolina state levels. The IRS considers your graphic design work as self-employment income, meaning you're both the employee and the employer.

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

South Carolina Specific Rules: South Carolina has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. For the 2024 tax year (filing in 2025), the rates are tiered. You'll use Form SC1040 to calculate your South Carolina income tax liability. Your federal AGI is the starting point for calculating your South Carolina taxable income, but there may be adjustments. South Carolina also offers standard deductions and personal exemptions, which can reduce your taxable income. Refer to the South Carolina Department of Revenue website (dor.sc.gov) for the most up-to-date tax brackets and forms.

Top Tax Write-offs for Graphic Designers

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud, Affinity Suite, or other tools essential to your work are fully deductible. This includes monthly or annual subscription fees.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, drawing tablet, and other equipment used for your graphic design business. For items with a useful life of more than one year, you'll likely need to depreciate the cost over several years, or you may be able to use Section 179 deduction or bonus depreciation to deduct the full cost in the year of purchase (subject to limitations – consult a tax professional).
• Mileage & Vehicle Expenses: If you drive for client meetings, to purchase supplies, or for other business-related purposes, you can deduct your mileage. The 2024 standard mileage rate is 67 cents per mile (verify this on the IRS website: irs.gov). Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, depreciation), but mileage is often simpler.
• 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). There's a simplified method based on square footage, or you can calculate the actual expenses.

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, totaling 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). The tax applies to your net earnings from self-employment (your profit from Schedule C) above $400. The good news is that you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI) on Form 1040.

Closing Tip for South Carolina Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping detailed records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional, especially as your business grows. The South Carolina Department of Revenue (dor.sc.gov) is an excellent resource for state-specific tax information. Proactive tax planning can save you money and reduce stress during tax season!