Freelance Writer Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Arkansas

The Natural State offers a growing market for freelance writers, but navigating the tax landscape requires diligence. As a self-employed writer in Arkansas, understanding both federal and state tax obligations is crucial for financial success.

The IRS requires all self-employed individuals, including freelance writers, to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure compliance and maximize potential deductions.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, a state income tax return is required regardless of income level. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Arkansas residents filing as individuals will use Form AR1000 to report their income. Self-employed individuals will need to include Schedule C income on this form. Arkansas also requires the filing of Schedule AR1000-C, which mirrors the federal Schedule C, to detail income and expenses from your freelance writing business.

Arkansas offers standard deductions, but freelance writers should carefully consider itemizing deductions to potentially reduce their tax liability. Estimated tax payments are generally required quarterly if you expect to owe $1,000 or more in Arkansas income tax. Failing to make timely estimated payments can result in penalties. The Arkansas Department of Finance and Administration provides detailed information and resources for self-employed individuals, including payment options and filing instructions. It's important to note that Arkansas conforms to many federal tax provisions, but there can be differences, so staying informed about state-specific updates is vital. The state also offers various credits and incentives that may be applicable to small business owners, so exploring these options is recommended.

For more information, please visit the Arkansas Department of Finance and Administration: https://www.arkansas.gov/departments/finance-administration

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your freelance writing business. “Exclusive use” means that portion of your home is only used for work; it cannot double as a guest room or family space. “Regular use” implies consistent and frequent use for business purposes. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, and other home-related expenses based on the square footage used for business).
• Hardware & Software: The cost of essential hardware, such as computers, cameras, and printers, is generally deductible. Software subscriptions directly related to your writing work – including word processing programs, editing tools, Adobe Creative Cloud, website hosting, and project management software – are also deductible business expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Maintain detailed records to substantiate this percentage. For example, if 60% of your internet usage is for work, you can deduct 60% of your internet bill.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for any trips taken specifically for client meetings, research, or other work-related errands. Keep a detailed mileage log documenting dates, destinations, and business purpose.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You are responsible for paying both portions as a self-employed individual. However, you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).