Freelance Writer Taxes in Pennsylvania - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Pennsylvania

The Keystone State offers a vibrant landscape for freelance writers, but navigating the tax implications of self-employment requires careful attention. As a freelance writer in Pennsylvania, understanding both federal and state tax obligations is crucial for financial success and avoiding penalties.

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, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure proper reporting and maximize deductible expenses.

How Pennsylvania Handles Gig Worker Taxes

As a resident of Pennsylvania, a state income tax return is required regardless of income level. Pennsylvania operates under a flat income tax rate, currently at 3.07% for the 2025 tax year. This means all taxable income is subject to the same rate. Freelance writers are considered self-employed for Pennsylvania tax purposes and must report their income on Pennsylvania Schedule C, which accompanies Form PA-1040, the state’s individual income tax return. It’s important to note that Pennsylvania does not have a separate self-employment tax like the federal government; however, the federal self-employment tax still applies. Pennsylvania also allows for certain deductions and credits that can reduce your state tax liability. Estimated taxes are generally required if your expected tax liability is $1,000 or more. Failure to pay estimated taxes can result in penalties. The Pennsylvania Department of Revenue provides comprehensive information and resources for self-employed individuals, including tax forms and instructions. Remember to keep detailed records of all income and expenses to accurately calculate your Pennsylvania tax liability. The state also offers various online tools to assist with tax preparation and filing.

For more information, please visit the Pennsylvania Department of Revenue: https://www.revenue.pa.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 only used for work; a dining room table used for both meals and writing doesn’t qualify. “Regular use” implies consistent and frequent use for business activities. Taxpayers can choose between the simplified method, a standard deduction of $5 per square foot of the home used for business, up to a maximum of 300 square feet, or the actual expense method, which involves calculating the percentage of the home used for business and deducting a proportionate share of mortgage interest, rent, utilities, and other related expenses.
• Hardware & Software: The cost of essential hardware, such as computers, cameras, and printers, is generally deductible. Software expenses, including subscriptions to writing tools (e.g., Grammarly), design software (e.g., Adobe Creative Cloud), and website hosting, are also deductible as business expenses.
• 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. For example, if 75% of your internet usage is for work, you can deduct 75% of your internet bill.

Note on Mileage: As a home-based worker, mileage is not a primary deduction, but can be claimed for occasional client meetings, research trips, or other work-related errands. Keep a detailed mileage log to substantiate any claims.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax is comprised of two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the FICA taxes withheld from employees’ paychecks, but as a self-employed individual, you are responsible for paying both the employer and employee portions. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).