Freelance Writer Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Indiana

The vibrant literary scene in Indiana offers numerous opportunities for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed professional, understanding your federal and state tax obligations is crucial for financial success.

Freelance writers in Indiana, like all self-employed individuals, are required to report income and expenses using Schedule C (Profit or Loss From Business) when filing their federal income tax return (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 proper reporting and maximize potential deductions.

How Indiana Handles Gig Worker Taxes

As a resident of Indiana, a state income tax return is required regardless of income level. Indiana operates under a flat income tax rate, currently at 3.15% for the 2025 tax year. This means all taxable income is subject to the same rate. Self-employed individuals in Indiana utilize Form IT-1040, Indiana Resident Income Tax Return, to report their income and calculate their state tax liability. The income reported on your federal Schedule C flows directly to your Indiana IT-1040. Indiana also requires the filing of Schedule IN-1040-P, Profit or Loss from Business, Partnership, or S Corporation, which mirrors the federal Schedule C. Estimated tax payments are generally required quarterly if your expected tax liability exceeds $1,000. Failing to make timely estimated payments can result in penalties. Indiana’s Department of Revenue offers resources and tools to help self-employed individuals understand and comply with state tax laws. It’s important to note that Indiana does not have a local income tax levied by cities or counties, simplifying the state tax process. Keep detailed records of all income and expenses, as Indiana follows federal adjusted gross income (AGI) as a starting point for calculating state taxable income.

For more information and resources, please visit the Indiana Department of Revenue: https://www.in.gov/dor/

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 purposes. 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 of the home office).
• Hardware & Software: The cost of essential tools like computers, cameras, printers, and software subscriptions (e.g., Adobe Creative Cloud, website hosting, grammar checkers) 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. Maintain records demonstrating how the services are used for work (e.g., client communication, research).

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel directly related to client meetings, research requiring physical presence, or other work 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. 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).