Freelance Writer Taxes in Austin, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Austin, Texas

Austin’s thriving tech scene and creative spirit make it a fantastic hub for freelance writers, but navigating the tax landscape requires diligence. As a self-employed writer, understanding your federal and state tax obligations is crucial for financial health.

The IRS requires all freelance writers earning over $400 to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. This income is then subject to both income tax and self-employment tax, which covers Social Security and Medicare contributions. Proper record-keeping throughout the year is essential to maximize deductions and ensure accurate filing.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. However, be aware of the Texas Franchise Tax. While it has a high threshold (over $1.2 million in revenue) that rarely applies to solo gig workers operating as sole proprietorships or single-member LLCs, it's a key part of the state's business tax structure. Freelance writers in Austin, even those working remotely, are still considered businesses operating within Texas and should be aware of this. While most won’t meet the revenue threshold, understanding its existence is important.

Texas does not have a state income tax, meaning you won’t file a state income tax return. However, if your freelance writing business operates as a corporation or LLC taxed as a corporation, it may be subject to the Franchise Tax. Even if you don’t owe franchise tax, maintaining accurate records of your business income and expenses is vital, as Texas is a business-friendly state that occasionally updates its regulations. Consider the practicalities of working in Austin – parking for client meetings downtown can be expensive, and factoring those costs into your business expenses is a smart move. The high demand for content creators in Austin means competition is also present, so efficient tax planning can free up resources for business development.

For comprehensive information on Texas taxes, visit the Texas Comptroller’s website: https://comptroller.texas.gov/

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: To qualify, the space must be used exclusively and regularly for your freelance writing business. “Exclusive use” means that portion of your home is only used for work – no guest rooms doubling as offices! “Regular use” means you use it consistently for business. 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 computers, cameras, printers, and essential software subscriptions (like Adobe Creative Cloud, Grammarly, website hosting, or project management tools) directly related to your writing business are deductible. If an item has a useful life of more than one year (like a computer), you may need to depreciate it over several years.
• Internet & Phone Bill: You can deduct the business-use percentage of your internet and phone bills. If you use these services for both personal and business purposes, accurately tracking the percentage of business use is crucial.

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

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. You are responsible for paying both the employer and employee portions of these taxes as a self-employed individual.