Freelance Writer Taxes in Idaho - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Idaho

Idaho’s stunning landscapes and growing digital economy make it an increasingly popular location for freelance writers seeking both inspiration and opportunity. However, alongside the creative freedom comes the responsibility of managing taxes as a self-employed individual.

As a freelance writer earning income in Idaho, the federal government requires reporting of all earnings on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, income exceeding $400 necessitates the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount for a smooth tax filing process.

How Idaho Handles Gig Worker Taxes

Idaho, known for its potato fields and outdoor recreation, also requires residents to file a state income tax return, even if only self-employment income is earned. Idaho operates under a flat income tax rate, meaning all income is taxed at the same percentage, regardless of income bracket. For the 2025 tax year, the Idaho income tax rate is 5.8%. Freelance writers will use Form 40, Idaho Individual Income Tax Return, to report their income and calculate their state tax liability. Self-employment income reported on Schedule C at the federal level will also be reported on Schedule 1 of Form 40. Idaho also requires the payment of estimated taxes quarterly if a taxpayer expects to owe more than $1,000 in state income tax. Failure to pay estimated taxes can result in penalties. Idaho’s tax laws are generally aligned with federal guidelines regarding deductible business expenses, allowing freelance writers to reduce their taxable income. It’s important to note that Idaho does not have a local income tax, simplifying the filing process compared to some other states. For detailed information and the latest updates, please refer to the Idaho State Tax Commission: https://tax.idaho.gov/

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” means consistent and frequent use for business. Taxpayers can choose between the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of mortgage interest, rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential tools like computers, cameras, printers, and software subscriptions (such as 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 a portion of your internet and phone usage is directly related to your freelance writing business, you can deduct the business-use percentage. Keep detailed records of how these services are used for work versus personal purposes.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips directly related to your business, such as client meetings, research at the library, or purchasing supplies. Maintain a detailed mileage log if claiming this deduction.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of 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.