Freelance Writer Taxes in North Dakota - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in North Dakota

The wide-open landscapes of North Dakota inspire creativity, and for freelance writers, that inspiration can translate into a thriving business. However, alongside crafting compelling content comes the responsibility of managing taxes as a self-employed individual. Navigating the tax landscape as a solopreneur might seem daunting at first, but with the right knowledge and tools, you can ensure compliance and maximize your financial well-being.

As a freelance writer earning income in North Dakota, the IRS requires reporting of all your business earnings and expenses on Schedule C (Profit or Loss from Business) with your Form 1040. Crucially, if your net earnings from self-employment exceed $400, you are responsible for paying self-employment tax. This tax covers your contributions to both Social Security and Medicare. Given that you're essentially acting as both employer and employee for tax purposes, you'll need to make estimated tax payments quarterly using Form 1040-ES to cover both your income tax and self-employment tax liabilities, preventing a large tax bill and potential penalties at year-end. Accurate and meticulous record-keeping throughout the year isn't just a good idea, it's paramount to ensure compliance, identify all potential deductions, and take advantage of valuable tax savings like the Qualified Business Income deduction.

How North Dakota Handles Gig Worker Taxes

As a resident of North Dakota, you'll also be required to file a state income tax return, generally Form ND-1, the North Dakota Individual Income Tax Return, regardless of your income level. North Dakota operates on a graduated income tax system, meaning the tax rate increases as your taxable income rises. For the 2025 tax year, the rates are expected to remain similar to prior years, ranging from approximately 1.1% to 2.9% based on specific taxable income brackets. Self-employed individuals in North Dakota will report their net earnings from federal Schedule C as part of their overall income on Form ND-1.

A significant advantage for North Dakota taxpayers is the allowance for a deduction for federal income taxes paid, which can help reduce your state tax burden. Furthermore, estimated tax payments are generally required for your state liability if you expect to owe more than $500 in North Dakota income tax. These payments are typically made quarterly to avoid underpayment penalties. It's important to note that North Dakota does not impose a separate self-employment tax like the federal government; your federal self-employment tax is factored into your overall federal income tax calculation, which then impacts your North Dakota tax liability. Staying informed about changes to North Dakota tax laws is crucial for all residents, and the North Dakota Office of State Tax Commissioner provides valuable, up-to-date resources: North Dakota Office of State Tax Commissioner.

Key Tax Deductions for Home-Based Freelance Writers

Unlocking every available deduction is key to reducing your taxable income. For a freelance writer working from home in North Dakota, several common expenses can significantly lower your tax bill.

• Home Office Deduction: This is a cornerstone deduction for many home-based freelancers. To qualify, the space must be used exclusively and regularly for business. "Exclusive use" means that portion of your home is only used for freelance writing - it cannot double as a guest room, family den, or personal gym. "Regular use" implies consistent and frequent use for business activities. You have two methods to calculate this deduction:
  • Simplified Method: You can deduct $5 per square foot of your home used for business, up to a maximum of 300 square feet (for a maximum deduction of $1,500). This method is straightforward and requires less record-keeping.
  • Actual Expense Method: This involves calculating the percentage of your home used for business and deducting a proportionate share of mortgage interest, rent, utilities, homeowner's insurance, repairs, and even depreciation of your home. This method often yields a larger deduction but requires meticulous record-keeping. Our Advanced Calculator can help you compare these two methods and precisely calculate your potential home office savings.
• Qualified Business Income (QBI) Deduction: This is a powerful federal deduction available to eligible self-employed individuals and small business owners. Also known as the Section 199A deduction, it allows you to deduct up to 20% of your qualified business income from your taxable income. For a freelance writer, your income from writing is generally considered QBI. There are income limitations and other rules that can affect this deduction, especially for service businesses, so it's essential to understand the thresholds. This deduction is taken after you've calculated your adjusted gross income, meaning it directly reduces your taxable income, potentially saving you a significant amount on federal income taxes.
• Hardware & Software: The cost of essential tools directly related to your writing business is deductible. This includes computers, monitors, printers, external hard drives, ergonomic keyboards, and specialized software subscriptions like Adobe Creative Cloud, Grammarly Premium, website hosting, or transcription services. For items with a useful life of more than one year, such as a new laptop, you may need to depreciate the cost over several years. However, the IRS also offers options like Section 179 expensing or bonus depreciation, which can allow you to deduct the full cost of qualifying assets in the year of purchase. Our Advanced Calculator factors in depreciation when calculating actual expenses for your business assets.
• Internet & Phone Bill: As a freelance writer, reliable internet and phone service are non-negotiable. If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. For example, if you estimate 70% of your internet usage is for work-related activities, you can deduct 70% of your bill. Maintain detailed records, perhaps even a log for a few weeks, to support your deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common for daily commutes. However, any travel directly related to client meetings, research trips to a library or specific location, professional development events, or other work errands can be claimed. You can deduct these miles using the standard mileage rate set by the IRS each year, or you can track actual expenses for gas, oil, repairs, and depreciation. Our Advanced Calculator features a side-by-side comparison tool to help you determine whether the standard mileage rate or actual expenses - including depreciation - will provide you with the greatest tax savings for your business travel.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is a significant component of your tax liability as a freelance writer. This tax comprises two essential components: 12.4% for Social Security and 2.9% for Medicare. This rate is essentially the equivalent of the employer and employee portions of these payroll taxes when you work for a traditional employer. As a self-employed individual, you are responsible for paying both portions.

While this might seem like a heavy burden, the IRS does provide a silver lining: you can deduct one-half of your self-employment taxes paid on your Form 1040, Schedule 1. This deduction is an "above-the-line" deduction, meaning it reduces your adjusted gross income (AGI) and, consequently, your overall tax liability. Remember, paying your estimated taxes quarterly, typically using Form 1040-ES, is critical to avoid penalties related to underpayment of this self-employment tax throughout the year.