Freelance Writer Taxes in Tennessee - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Tennessee?

Yes, your income as a freelance writer is taxable, but Tennessee’s tax situation is simpler than most states. While Tennessee doesn’t have a state income tax on wages or salaries, federal income tax still applies to your earnings. As a freelancer, the IRS considers you self-employed, meaning you’re responsible for both income tax and self-employment 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 deduct business expenses, reducing your taxable income. Accurate record-keeping of income and expenses is crucial.

Tennessee Specifics: Because Tennessee has no state income tax, you won’t file a state income tax return. Your tax obligations are solely to the federal government.

Top Tax Write-offs for Freelance Writers

As a freelance writer, you can significantly reduce your tax liability by taking advantage of eligible deductions. Here are some key write-offs:

• 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, and subscriptions to research databases are deductible.
• Computer & Equipment: You can deduct the cost of your computer, printer, and other equipment used for your writing business. For items with a useful life of more than one year, you may need to depreciate the cost over several years, or potentially use Section 179 expensing (consult a tax professional for details).
• Mileage & Transportation: The 2024 federal standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log documenting dates, destinations, and business purpose. You can also deduct parking fees and tolls. You can choose to deduct actual vehicle expenses (gas, oil, repairs, etc.) instead of mileage, but mileage 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 that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall income tax liability. Remember, self-employment tax applies to net earnings over $400.

Closing Tip for Tennessee Residents

As a Tennessee resident, you benefit from the lack of state income tax. However, diligent record-keeping and understanding your federal obligations are paramount. Consider using accounting software or working with a qualified tax professional to ensure you’re maximizing your deductions and complying with all IRS regulations. Proactive tax planning can save you significant money and stress come tax season.