Freelance Writer Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in South Carolina

The Palmetto State’s thriving literary scene offers exciting opportunities for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed writer in South Carolina, 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 subject to both income tax and self-employment tax, which covers Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, a state income tax return is required, regardless of income level. South Carolina employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the rates are expected to remain similar to prior years, ranging from 0% to 6.4%. Freelance writers will primarily use South Carolina Form SC1040 to file their state income tax return. Schedule SC-1040, Income from Business, is used to report income and expenses from your freelance writing business. South Carolina also allows for a deduction for federal taxes paid, which can help reduce your state tax liability. It’s important to note that South Carolina generally follows federal adjusted gross income (AGI) as a starting point for calculating state taxable income, but there are specific state adjustments that may apply. Estimated tax payments are required if you expect to owe $100 or more in South Carolina income tax. These payments are typically made quarterly to avoid penalties. Staying informed about any changes to South Carolina tax laws is vital; the South Carolina Department of Revenue provides comprehensive information and resources on their website: South Carolina Department of Revenue.

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 used solely for work, and “regular use” means it’s your principal place of business or a place where you meet clients. 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 tools like computers, cameras, printers, and software subscriptions (e.g., Adobe Creative Cloud, website hosting, grammar checkers) 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 you use your internet and phone for both personal and business purposes, you can deduct the percentage of the expense attributable to your freelance writing work. Keep detailed records of how you use these services to support your deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips directly related to your business, such as client meetings, research at the library, or purchasing supplies. Keep a detailed mileage log if you plan to claim this deduction.

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. However, as a self-employed individual, you are responsible for paying both the employer and employee portions of these taxes. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).