Freelance Writer Taxes in New Jersey - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in New Jersey

The Garden State offers a vibrant market for freelance writers, but navigating the tax landscape requires diligence. As a self-employed writer in New Jersey, 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 then subject to self-employment tax, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How New Jersey Handles Gig Worker Taxes

As a resident of New Jersey, a state income tax return is required regardless of income level. New Jersey operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, New Jersey residents filing as individuals will use Form NJ-1040 to report their income. Self-employed individuals will also need to file Form NJ-1040-P, which is used to calculate income tax liability for profits from a business or profession. New Jersey’s tax brackets are subject to change annually, so it’s important to consult the latest information from the New Jersey Division of Taxation. Estimated taxes are generally required to be paid quarterly if a taxpayer expects to owe more than $500 in state income tax. Failure to pay estimated taxes can result in penalties. New Jersey also allows for certain business tax credits that freelance writers may be eligible for, such as those related to workforce development or research and development. It is important to note that New Jersey does not have a separate self-employment tax like the federal government; your net earnings from self-employment are simply added to your other income and taxed at your applicable rate. For the most up-to-date information and forms, please visit the New Jersey Division of Taxation website: https://www.nj.gov/treasury/taxation/

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, and “regular use” means it’s used consistently for work. Taxpayers can choose between the simplified method, which offers a standard deduction of $5 per square foot of the home used for business (capped at 300 square feet), or the actual expense method, which requires calculating the percentage of the home used for business and deducting a portion of mortgage interest, rent, utilities, and other related expenses.
• Hardware & Software: The cost of essential tools like computers, cameras, printers, and software subscriptions (such as Adobe Creative Cloud, Grammarly, or website hosting) are generally deductible as business expenses. If the item has a useful life of more than one year, it may need to be depreciated over time.
• 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. Keep detailed records of how you use these services for work to support your deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, if you occasionally travel to meet with clients, attend industry events, or run work-related errands, you can deduct the business portion of your mileage using the standard mileage rate set by the IRS each year.

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. Freelance writers are responsible for paying both the employer and employee portions of these taxes.