Freelance Writer Taxes in Kentucky - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Kentucky

Kentucky’s rich literary tradition, from Robert Penn Warren to Wendell Berry, provides a fertile ground for freelance writers, but navigating the tax landscape requires diligence. As a self-employed writer in the Bluegrass State, 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 using 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 Kentucky Handles Gig Worker Taxes

As a resident of Kentucky, a state income tax return is required, even if no Kentucky income tax was withheld. Kentucky operates under a flat income tax rate, currently at 4.0% for the 2025 tax year. This means all taxable income is taxed at the same rate, simplifying the calculation process. Freelance writers will report their income and deductions on Form 740, Kentucky Individual Income Tax Return. Specifically, Schedule K, Income from Business, Profession, or Farm, is used to report income and expenses related to freelance writing. Kentucky also allows for a standard deduction, which can reduce your taxable income. For the 2025 tax year, the standard deduction amounts will be adjusted for inflation, so it’s important to consult the latest instructions. Kentucky also offers various credits that may be applicable to self-employed individuals, such as credits for certain business expenses. Remember to keep detailed records of all income and expenses to accurately calculate your Kentucky tax liability. It is also important to note that Kentucky conforms to many federal tax provisions, but it’s essential to verify any specific deductions or credits to ensure they are allowed under Kentucky law. For the most up-to-date information and forms, please visit the Kentucky Department of Revenue website: https://revenue.ky.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 the space is used consistently for work. 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 internet and phone usage is directly related to business, the corresponding percentage can be deducted. For example, if 75% of internet use is for client work, 75% of the bill is deductible.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips to meet clients, attend industry events, or purchase supplies not readily available locally. Maintain a detailed mileage log for accurate record-keeping.

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. Taxpayers can deduct one-half of their self-employment tax from their gross income.