45 Tax Deductions for Freelance Writers

If you're a freelance writer you know tax season is here. You have probably already received some 1099 forms in the mail for the work you have completed throughout the year. Taxes are always daunting, but deductions help lower the amount you owe or get a tax return.

1. Books bought for research or education
2. Office Furniture
3. Business Phone Line
4. Stamps and Envelopes
5. Business Banking Fees
6. Advertising
7. Website Hosting and Domains
8. Printer
9. Computer
10. Internet Connection
11. Magazines
12. Business Trip Costs
13. Business Meals
14. Health Care
15. Professional Organization Membership Fees
16. Gas Mileage for Business Trips
17. Software for Freelance Writing
18. Home Office
19. Cost of an Office
20. Fax Machine
21. Scanner
22. Printer Ink
23. Paper
24. Pens
25. Notebooks
26. Camera for Article Photos
27. Online Subscriptions for Freelance Writing
28. Accounting and Tax Filing Fees
29. Writing Conferences
30. Writing Retreats
31. Networking Group
32. Babysitting or Daycare Costs
33. Business Clothing
34. Agent Fees
35. Copyright Fees
36. Business License
37. Business Registration
38. Writing Contest Fees
39. 401K Contributions
40. Subcontracting Fees
41. Brochures
42. Press Releases
43. Business Cards
44. Flyers
45. Promotional Products

The Schedule C 1040 form is the self-employment tax form. You will see that in part 2 of Schedule C is where you need to list out your freelance writing tax deductions. There are categories for your deductions, so it is a good idea to prepare for that throughout the year. In your ledger or on the receipt note what kind of expense it is so you won’t have to go back and categorize them all at tax time.

Self-Employment taxes is 15.3% of your income. For example, if you made $1,000 last year (writing’s my specialty, not math) you would owe $150 in self-employment taxes to the Internal Revenue Service (IRS). To calculate your approximate owed taxes multiply your income by 0.15. The sum is about what you owe.

It is recommended that you save this percentage of your freelance writing income and pay it on a quarterly basis. When tax time rolls around you won’t owe that much and (depending on how much you make and what you qualify for) you should get a tax return.You need to use Form 1040-ES to file quarterly estimated taxes.

Save all of your receipts for business expenses. If you buy something online print out a receipt and put it away. Keep records of your income and expenses in a ledger so when tax time comes around you will be prepared. Use a small file box for your freelance writing taxes to file and save all of your tax records. That way you will have everything in one place. In your ledger keep sums of your gross income, expenses, and net income for the month, quarter and year. Make it a habit to brush up your ledger on a regular basis so when tax time comes around you are not completely overwhelmed.