Graphic Designer Taxes in Utah - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Graphic Designer income taxable in Utah?

Yes, absolutely. As a graphic designer earning income as an independent contractor (or sole proprietor), your earnings are subject to both federal and Utah state income taxes. The IRS requires you to report this income on Schedule C (Profit or Loss from Business) as part of your Form 1040. Schedule C is where you detail your income and expenses related to your graphic design business. It's crucial to keep accurate records of all income received and expenses paid.

Utah has a flat income tax rate of 4.85% for 2024. This means regardless of your income level, you'll pay 4.85% of your taxable income to the state. You'll report your federal adjusted gross income (AGI) on your Utah state income tax return (Form TC-1040) and then calculate your Utah taxable income and tax liability.

Top Tax Write-offs for Graphic Designers

As a graphic designer, you have several opportunities to reduce your taxable income through legitimate business deductions. Here are a few key ones:

• Software & Subscriptions: Costs for design software like Adobe Creative Cloud (Photoshop, Illustrator, InDesign), font subscriptions, stock photo services, and project management tools are generally fully deductible.
• Computer & Equipment: You can deduct the cost of your computer, monitor, printer, scanner, drawing tablet, and other equipment used for your 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 utilize Section 179 deduction or bonus depreciation (consult with a tax professional to determine the best method).
• 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, such as a portion of your rent/mortgage, utilities, and home insurance. There's a simplified method available as well.
• Mileage & Transportation: The 2024 standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log documenting the date, destination, and business purpose of each trip. Alternatively, you can deduct actual vehicle expenses (gas, oil, repairs, insurance, etc.), but the standard mileage rate is often simpler.

The 15.3% Self-Employment Tax Surprise

Many self-employed individuals are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes, and you pay the other half. As a self-employed graphic designer, you're responsible for both portions. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings (profit) from Schedule C that exceed $400. You report this on Schedule SE (Self-Employment Tax). The good news is 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.

Closing Tip for Utah Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or working with a qualified tax professional (like myself!) to ensure you're taking advantage of all eligible deductions and complying with both federal and Utah state tax regulations. Proactive tax planning can save you money and stress during tax season. Good luck with your graphic design business, and I hope you have a successful and tax-efficient year!