Freelance Writer Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Montana

Montana’s Big Sky Country offers a unique backdrop for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed writer, understanding both federal and state tax obligations is crucial for financial success.

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

How Montana Handles Gig Worker Taxes

As a resident of Montana, a state income tax return is required, regardless of income level. Montana utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax rates are expected to remain consistent with prior years, ranging from 1% to 6.75% based on taxable income brackets. Freelance writers will primarily use Form 2 (Montana Individual Income Tax Return) to report their income and calculate their state tax liability. The income reported on Schedule C at the federal level will flow to Form 2. Montana also allows for certain deductions and credits that can reduce your overall tax burden, such as those related to business expenses. It’s important to note that Montana’s tax laws can change, so staying updated is vital. The Montana Department of Revenue provides comprehensive information and resources for taxpayers, including downloadable forms and instructions. Montana also offers a business expense deduction for qualified expenses, which can be beneficial for freelance writers. Remember to keep detailed records of all income and expenses to support your tax return.

For more information, please visit the Montana Department of Revenue: https://revenue.mt.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 used solely for work, and “regular use” means it’s used consistently for business activities. A spare bedroom dedicated entirely to writing qualifies; a corner of the living room used intermittently does not. 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, that percentage is deductible. For example, if 75% of internet use is for client work, 75% of the bill can be claimed as a deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, any travel directly related to client meetings, research, or other work errands can be claimed using the standard mileage rate (set annually by the IRS) or actual vehicle expenses.

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 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.