Freelance Writer Taxes in Texas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Texas?

Yes, your income as a freelance writer is taxable, but the situation in Texas is simpler than in many other states. While Texas does not have a state income tax, you are still responsible for federal income 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 from your gross income, arriving at your taxable profit. This profit is then added to your other income (if any) and subject to federal income tax rates.

Because Texas has no state income tax, you won’t file a state income tax return. However, you are still subject to federal taxes, including income tax and self-employment tax, on your earnings.

Top Tax Write-offs for Freelance Writers

• Home Office Deduction: If you use a portion of your home exclusively and regularly for your freelance 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, project management software, and relevant online subscriptions (research databases, stock photo sites) are generally 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'll typically depreciate the cost over several years. However, Section 179 deduction and bonus depreciation may allow you to deduct the full cost in the year of purchase, subject to limitations.
• 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 locations). 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 and results in a larger deduction.

The 15.3% Self-Employment Tax Surprise

As a freelancer, you're both the employee and the employer. This means you're responsible for paying both the employee and employer portions of Social Security and Medicare taxes. This combined tax is called self-employment tax and is currently 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 get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which reduces your overall income tax liability. Self-employment tax applies to net earnings over $400.

Closing Tip for Texas Residents

As a Texas resident, you benefit from the lack of state income tax. However, diligent record-keeping is crucial to maximize your deductions and minimize your federal tax burden. Consider using accounting software or working with a tax professional to ensure you're taking advantage of all available tax benefits. Don't wait until the last minute – planning throughout the year will make tax season much smoother. Remember to make estimated tax payments quarterly to avoid penalties.