Freelance Writer Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Utah?

Yes, absolutely. As a freelance writer in Utah, all income you earn is subject to both federal and state income taxes. The good news is you can significantly reduce your tax liability through deductions. Here's a breakdown:

• Federal Taxes: The IRS requires you to report your freelance writing income on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form details your income and expenses. You'll calculate your net profit (income minus expenses), and that profit is then added to your other income when calculating your adjusted gross income (AGI).
• Utah State Taxes: Utah has a flat income tax rate of 4.85% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be included in your Utah taxable income, and taxed at this flat rate. Utah also requires you to file a state income tax return (Form TC-1040).

Top Tax Write-offs for Freelance Writers

One of the biggest benefits of being a freelancer is the ability to deduct 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. This includes a percentage of your mortgage interest or rent, utilities, property taxes, and homeowner's insurance. There's a simplified method available as well.
• Software & Subscriptions: Costs for writing software (like Scrivener, Grammarly), editing tools, plagiarism checkers, project management software, and any relevant online subscriptions 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'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).
• Mileage & Transportation: The 2024 standard mileage rate is 67 cents per mile for business use of your vehicle (verify the final official rate from the IRS). 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%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on 92.35% of your net earnings. You do get to deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Utah Residents

Don't wait until the last minute! Keeping accurate records of your income and expenses throughout the year will make tax time much easier. Consider using accounting software or a spreadsheet to track everything. Also, Utah offers resources for small businesses – check the Utah State Tax Commission website (tax.utah.gov) for helpful information and forms. If you're unsure about any aspect of your taxes, consulting with a qualified tax professional is always a wise investment.