Graphic Designer Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Graphic Designer in Nebraska

From branding for Nebraska’s thriving agricultural businesses to creating eye-catching designs for local events in Omaha and Lincoln, graphic designers play a vital role in the state’s economy. As a self-employed graphic designer in Nebraska, understanding your tax obligations is crucial for financial success.

The IRS requires all self-employed individuals, including graphic designers, to report business 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, even if your federal tax liability is zero. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your 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. The primary form for self-employed individuals to file their Nebraska income tax return is Form 1040N, Nebraska Individual Income Tax Return.

Nebraska also has a corresponding Schedule I, which is used to calculate adjustments to income, including the self-employment tax deduction (which is half of your self-employment tax liability). It’s important to note that Nebraska allows a standard deduction, but self-employed individuals may find that itemizing deductions, including business expenses, results in a lower tax liability. Additionally, Nebraska offers various credits that may be applicable, such as credits for property taxes paid or for certain educational expenses. Staying informed about these changes and utilizing available resources is key to accurate tax filing.

For the most up-to-date information and forms, please visit the Nebraska Department of Revenue website: https://revenue.nebraska.gov/

Key Tax Deductions for Home-Based Graphic Designers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for your graphic design business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as design studios. “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, etc., based on the square footage used for business).
• Hardware & Software: The cost of essential hardware, such as computers, monitors, tablets, and cameras used for your graphic design work, is generally deductible. Software expenses, including subscriptions to Adobe Creative Cloud, font licenses, and website hosting, are also deductible 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 business use. Maintain detailed records to support this calculation. For example, if 60% of your internet usage is for client work, you can deduct 60% of your internet bill.

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

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 you are employed by someone else. You receive credit for one-half of this tax when calculating your adjusted gross income.