Freelance Writer Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Nebraska

The Cornhusker State offers a thriving environment for freelance writers, but navigating the tax landscape requires diligence. As a self-employed writer in Nebraska, 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 on 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 Nebraska Handles Gig Worker Taxes

As a resident of Nebraska, a state income tax return is required, regardless of income level. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Nebraska’s income tax rates are expected to remain consistent with prior years, ranging from 2.66% to 6.84% based on income brackets. Freelance writers will primarily use Nebraska Form 1040N, the Nebraska Individual Income Tax Return, to report their income. Schedule I (Nebraska Adjustments to Federal Income) is used to make adjustments to federal adjusted gross income (AGI) to arrive at Nebraska taxable income. Crucially, Nebraska allows a deduction for federal taxes paid, which can significantly reduce state tax liability. Additionally, Nebraska offers various credits and deductions that freelance writers may be eligible for, such as those related to education or property taxes. It's important to note that Nebraska also has a separate use tax for items purchased online that were not subject to sales tax at the time of purchase. Staying informed about changes to Nebraska tax laws is vital; the Nebraska Department of Revenue provides up-to-date information and resources.

For more information, please visit the Nebraska Department of Revenue: https://revenue.nebraska.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 business. “Exclusive use” means that portion of your home is only used for writing – it cannot double 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, which requires calculating a percentage of your home expenses (mortgage interest, rent, utilities, etc.) based on the square footage used for business.
• Hardware & Software: The cost of essential tools like computers, cameras, printers, and software subscriptions (e.g., Adobe Creative Cloud, website hosting, grammar checkers) 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 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 writing business, such as client meetings, research at libraries, or trips to purchase supplies.

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. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).