Freelance Writer Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Maryland

Maryland’s vibrant literary scene and growing digital economy offer exciting opportunities for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed individual, understanding your federal and state tax obligations is crucial for financial success.

The IRS requires all freelance writers earning $400 or more to report income and pay self-employment taxes. This is typically done using Schedule C (Profit or Loss from Business) attached to your Form 1040. Self-employment tax covers both Social Security and Medicare contributions, and currently stands at 15.3% on net earnings exceeding $400. Accurate record-keeping throughout the year is essential to maximize deductions and minimize your tax liability.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, a state income tax return is required regardless of income level. Maryland utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Maryland residents filing as self-employed individuals will primarily use Form 502, Individual Income Tax Return. This form is used to calculate your Maryland taxable income and determine your state income tax liability. Maryland also has a county income tax, which varies depending on the county of residence. This is calculated as a percentage of your taxable income and is reported on Form 502.

Maryland offers several credits and deductions that can reduce your state tax burden. The Work Opportunity Tax Credit (WOTC) may be applicable if you hire eligible individuals. Additionally, Maryland allows for a subtraction modification for qualified business income (QBI), potentially reducing your taxable income. It’s important to note that Maryland conforms to many federal deductions, but not all. Therefore, careful review of both federal and state tax laws is necessary. Estimated tax payments are generally required quarterly if you expect to owe $1,000 or more in Maryland state income tax. Failure to make timely estimated payments can result in penalties. Resources and forms can be found on the Maryland Comptroller's website: https://www.marylandtaxes.gov/

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your freelance writing business. “Exclusive use” means the area is only used for work, not as a guest room or family space. “Regular use” implies consistent and frequent use for business purposes. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, and other home-related expenses based on the business use of your home).
• Hardware & Software: The cost of essential hardware, such as computers, cameras, and printers, is generally deductible. Software expenses, including subscriptions to writing tools (e.g., Grammarly), design software (e.g., Adobe Creative Cloud), and website hosting, are also deductible as business expenses.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to your freelance work. Maintain detailed records to support this calculation.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips directly related to your freelance business, such as client meetings, research at libraries, or trips to purchase supplies. Keep a detailed mileage log.

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 FICA taxes withheld from employees’ paychecks, but as a self-employed individual, you are responsible for paying both the employer and employee portions. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).