Freelance Writer Taxes in Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Virginia?

Yes, absolutely. As a freelance writer in Virginia, your earnings are subject to both federal and Virginia state income taxes. The IRS treats freelance income as business income, meaning you'll report it on Schedule C (Profit or Loss from Business) as part of your Form 1040. This schedule allows you to deduct business expenses, reducing your taxable income. You'll calculate your net profit (income minus expenses) on Schedule C, and that amount flows to your 1040.

Virginia has a graduated income tax system. This means the tax rate you pay depends on your income level. Your net profit from Schedule C will be included in your Virginia adjusted gross income (AGI), and then taxed according to the Virginia tax brackets for the 2024 tax year (filing in 2025). You'll use Virginia Form 540 to calculate and pay your state income tax. Virginia also allows for itemized deductions, similar to the federal level, which can further reduce your state tax liability.

Top Tax Write-offs 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 based on square footage, or you can calculate the 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 all 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 for a larger upfront deduction in some cases – consult with a tax professional to see if you qualify.
• 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 cannot deduct commuting miles.

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 broken down into 12.4% for Social Security and 2.9% for Medicare. You'll calculate this tax on Schedule SE (Self-Employment Tax), using your net profit from Schedule C (minus one-half of your 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 tax burden. Self-employment tax applies to earnings over $400.

Closing Tip for Virginia 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. Virginia's tax laws can be complex, and it's always a good idea to consult with a qualified tax professional, especially if you have a more complicated tax situation. We're here to help ensure you're taking advantage of all available deductions and complying with all applicable laws.