Virtual Assistant Taxes in Georgia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Virtual Assistant in Georgia

The Peach State’s thriving business environment offers numerous opportunities for skilled Virtual Assistants, but navigating the tax landscape requires careful attention. As a self-employed professional, understanding both federal and Georgia state tax obligations is crucial for financial success.

Federal law requires all self-employed individuals, including Virtual Assistants, to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure compliance and maximize potential deductions.

How Georgia Handles Gig Worker Taxes

As a resident of Georgia, a state income tax return is generally required, even if no state income tax is ultimately due. Georgia operates under a flat income tax rate system, meaning all income is taxed at the same percentage. For the 2025 tax year, the current flat tax rate is 5.49%. This rate is subject to change, so staying updated with the Georgia Department of Revenue is essential. Self-employed individuals in Georgia will primarily use Form 540, Individual Income Tax Return, to report their income and calculate their tax liability. This form includes a Schedule 1, which is used to report business income from Schedule C. Georgia also allows for various credits and deductions that can reduce your overall tax burden. It’s important to note that Georgia does not have a separate self-employment tax like the federal government; however, the federal self-employment tax still applies. Estimated tax payments are typically required quarterly if your expected tax liability exceeds $1,000. Failing to make timely estimated payments can result in penalties. Resources and detailed information regarding Georgia tax laws can be found on the Georgia Department of Revenue website: https://dor.georgia.gov/. Understanding these nuances is vital for accurate tax filing and avoiding potential issues with the state.

Key Tax Deductions for Home-Based Virtual Assistants

• Home Office Deduction: The home office deduction allows Virtual Assistants 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, and “regular use” means it’s used consistently for business activities. Taxpayers can choose between the simplified method, which offers a standard deduction of $5 per square foot (up to 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 hardware, such as computers, webcams, and printers, is generally deductible. Software subscriptions vital to the business, including programs like Adobe Creative Cloud, project management tools, and website hosting fees, are also deductible expenses.
• Internet & Phone Bill: If a portion of your internet and phone service is used for business, you can deduct the business-use percentage. Carefully track how much time is spent on business-related calls and internet usage to accurately determine this percentage.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel directly related to client meetings, attending industry events, or running business errands can be claimed using the standard mileage rate or actual expenses.

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. It’s calculated on net earnings – your business income minus allowable business deductions – exceeding $400.