Freelance Writer Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Delaware

Delaware’s thriving literary scene and growing digital economy offer exciting opportunities for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed writer in the First State, understanding both federal and Delaware 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, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure compliance and maximize potential deductions.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, a state income tax return is required, even if no Delaware income tax is ultimately due. Delaware utilizes a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Delaware residents will file using Form 1040-D, the Delaware Individual Income Tax Return. The income brackets and rates are subject to annual adjustments, but as of the latest information, rates range from 0% to 6.6%. Delaware also allows for certain itemized deductions, mirroring many of the federal deductions, which can help reduce your overall tax liability. It’s important to note that Delaware does not have local income taxes levied by cities or counties, simplifying the state tax process. Delaware also offers a credit for taxes paid to other states, which may be relevant if you earn income from sources outside of Delaware. Staying informed about changes to Delaware tax law is essential; the Delaware Division of Revenue provides comprehensive information and resources for taxpayers. You can find more information at Delaware Division of Revenue.

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: The home office deduction allows writers to deduct expenses related to the portion of their home exclusively and regularly used for business. “Exclusive use” means that space is only used for work; a dining room table used for both meals and writing doesn’t qualify. “Regular use” implies consistent and frequent use for business activities. Taxpayers can choose between the simplified method, a standard deduction of $5 per square foot of the home used for business (capped at 300 square feet), or the actual expense method, which requires calculating the percentage of the home used for business and deducting a proportionate share of mortgage interest, rent, utilities, and other related expenses.
• Hardware & Software: The cost of essential tools of the trade, such as computers, cameras, printers, and software subscriptions (like Adobe Creative Cloud, Grammarly, or website hosting), are generally deductible as business expenses. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If your internet and phone are used for both personal and business purposes, you can deduct the percentage attributable to business use. Maintaining a log of business-related usage is recommended to substantiate this deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips directly related to your freelance writing business, such as client meetings, research at libraries, or trips to purchase supplies. 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 FICA taxes withheld from employees’ paychecks. However, as a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).