Freelance Writer Taxes in Minnesota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Minnesota

The Land of 10,000 Lakes offers a thriving environment for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed writer in Minnesota, understanding both federal and state tax obligations is crucial for financial success.

The IRS requires all freelance writers earning over $400 to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. This income is then subject to both income tax and self-employment tax, which covers Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Minnesota Handles Gig Worker Taxes

As a resident of Minnesota, a state income tax return is required regardless of income level. Minnesota utilizes a graduated income tax system, meaning the tax rate increases as income increases. For the 2025 tax year, Minnesota residents filing as self-employed individuals will primarily use Form M1, Minnesota Income Tax Return, along with Schedule 1, Adjustments to Income. It's important to note that Minnesota taxes are calculated on your federal adjusted gross income (AGI). Minnesota also has a specific form, Schedule IN, for calculating income not subject to Minnesota tax.

Minnesota offers several credits and deductions that can reduce your tax liability. The Working Family Credit, for example, may be available depending on income and family status. Additionally, Minnesota allows for itemized deductions similar to the federal level, though there may be differences in amounts and eligibility. Keep detailed records of all income and expenses to accurately determine your Minnesota tax obligations. The Minnesota Department of Revenue provides comprehensive resources and tools for self-employed individuals. Be aware of estimated tax payments; Minnesota generally requires quarterly estimated tax payments if you expect to owe $1,000 or more in state income tax.

For more information and resources, please visit the Minnesota Department of Revenue: https://www.revenue.state.mn.us/

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 business. “Exclusive use” means that portion of your home is used solely for your writing business – it cannot double as a guest room or family room. “Regular use” means you use the space consistently for business activities. 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, etc., based on the square footage used for business).
• Hardware & Software: The cost of computers, cameras, printers, and essential software subscriptions (like Adobe Creative Cloud, website hosting, or grammar checking tools) directly related to your writing business are deductible. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Maintain a log of business-related usage to support your deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips to client meetings, research locations, or other work-related errands. Keep a detailed mileage log including dates, destinations, and business purpose.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the Social Security and Medicare taxes withheld from an employee’s paycheck. You are responsible for paying both the employer and employee portions of these taxes 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).