Freelance Writer Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Freelance Writer income taxable in Wisconsin?

Yes, absolutely. As a freelance writer in Wisconsin, all income you earn is subject to both federal and 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 federal income tax return. Schedule C is where you detail your income and your deductible business expenses. The difference between your income and expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).

Wisconsin also taxes income, and operates on a graduated income tax system. This means the tax rate you pay increases as your income increases. Your federal AGI is a starting point for calculating your Wisconsin taxable income. You’ll use Wisconsin Form 1040-WI to determine your state tax liability. Wisconsin generally follows federal rules regarding income, but there can be differences in deductions and credits, so it’s important to be aware of both.

Top Tax Write-offs for Freelance Writers

One of the benefits of being self-employed is the ability to deduct legitimate business expenses, reducing your taxable income. 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 (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, project management software, and subscriptions to research databases are all deductible.
• Equipment: Computers, printers, cameras (if used for content creation), and other equipment used for your writing business are deductible. You can often deduct the full cost in the year of purchase (using Section 179 deduction or bonus depreciation, subject to limits) or depreciate the cost over several years.
• 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 only pay self-employment tax on earnings over $400.

You'll calculate this on Schedule SE (Self-Employment Tax), which you submit with your Form 1040. The good news is that you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).

Closing Tip for Wisconsin Residents

Don't forget to plan for quarterly estimated tax payments! Because taxes aren't automatically withheld from your freelance income, the IRS and Wisconsin generally require you to pay estimated taxes four times a year to avoid penalties. Use Form 1040-ES (federal) and Form FE-1040 (Wisconsin) to calculate and pay your estimated taxes. Keeping accurate records of your income and expenses throughout the year will make tax time much easier. Consider consulting with a tax professional, especially in your first year of freelancing, to ensure you're taking advantage of all available deductions and complying with all applicable tax laws.