Freelance Writer Taxes in Tennessee - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Tennessee

The Volunteer 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 Tennessee, understanding your federal and state tax obligations is crucial for financial success.

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. Crucially, 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 Tennessee Handles Gig Worker Taxes

Tennessee stands out as one of the few states with no state income tax. This means freelance writers in Tennessee are not subject to a state-level income tax on their earnings. However, this does not exempt them from federal income tax or self-employment tax obligations. The absence of state income tax can be a significant benefit, allowing writers to retain a larger portion of their earnings, but diligent federal tax planning remains essential. Tennessee does collect sales tax on certain services, but generally, writing services are not subject to sales tax unless they involve tangible personal property. It’s important to stay updated on any potential changes to Tennessee’s tax laws, as interpretations can evolve. Many Tennessee writers benefit from the state’s pro-business environment, but this doesn’t negate the need for meticulous tax preparation. Given the unique tax structure, it's particularly important to consult with a qualified tax professional to ensure all federal requirements are met. For more information on Tennessee tax regulations, please visit the Tennessee Department of Revenue: https://www.tn.gov/revenue.html

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: To qualify for the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for writing – it cannot double as a guest room or family space. “Regular use” implies consistent and frequent use for business purposes. The deduction can be calculated using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of mortgage interest, rent, utilities, etc., based on the business use of the home).
• Hardware & Software: The cost of essential tools like computers, cameras, printers, and software subscriptions (e.g., Adobe Creative Cloud, website hosting, grammar checkers) directly related to your writing business are generally deductible. For larger purchases, depreciation or Section 179 expensing may apply.
• 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 substantiate this percentage.

Note on Mileage: As a home-based worker, mileage deductions are less common for freelance writers. However, any travel directly related to client meetings, research trips, or other work-related errands can be claimed using the standard mileage rate or actual expenses.

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 working for a traditional employer. You are responsible for paying both portions as a self-employed individual. A portion of your self-employment tax may be deductible from your gross income.