Freelance Writer Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Michigan

Michigan’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 both 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 is currently 15.3% on net earnings exceeding $400. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Michigan Handles Gig Worker Taxes

As a resident of Michigan, a state income tax return is required regardless of income level. Michigan operates under a flat income tax rate, currently 4.05% for the 2025 tax year. This means all taxable income is taxed at the same rate. Freelance writers will report their business income and expenses on Form MI-1040, Michigan's Resident Income Tax Return. Specifically, Schedule 1 (Adjustments to Income) will be used to report income from Schedule C. Michigan also allows for certain adjustments to income, such as contributions to qualified retirement plans, which can reduce your overall tax liability. It’s important to note that Michigan does not offer a separate tax form specifically for self-employed individuals beyond the standard MI-1040 and its schedules. Estimated tax payments are generally required if you expect to owe $500 or more in Michigan income tax. Failure to pay estimated taxes can result in penalties. The Michigan Department of Treasury provides comprehensive resources and tools for self-employed individuals, including information on estimated tax payments and filing requirements. Keep detailed records of all income and expenses to accurately calculate your Michigan tax liability.

For more information and resources, please visit the Michigan Department of Treasury: Michigan Department of Treasury

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 hardware, such as computers, cameras, and printers, is deductible. Software expenses, including subscriptions to writing tools (e.g., Grammarly), design software (e.g., Adobe Creative Cloud), and website hosting, are also deductible.
• 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. Carefully track how much time is spent on business-related activities versus personal use to accurately determine this percentage.

Note on Mileage: As a home-based worker, mileage is not a primary deduction, but can be claimed for occasional client meetings, research trips, or other work-related errands. Keep 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 effectively covers both the employer and employee portions of these taxes, as a traditional employee would have these contributions withheld from their paycheck. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).