Freelance Writer Taxes in Dallas, Texas - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Dallas, Texas

The vibrant literary scene and booming business environment in Dallas offer freelance writers a wealth of opportunity, but navigating the tax landscape requires careful planning. As a self-employed writer, 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, income exceeding $400 necessitates 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 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 Dallas should understand that even without state income tax, they are still responsible for federal income and self-employment taxes. Consider the practicalities of working in Dallas – parking costs for client meetings, potential expenses related to co-working spaces if you occasionally need a change of scenery, and the generally higher cost of living compared to other parts of Texas. While Texas doesn’t have a state income tax, it does have sales tax, which may apply to certain business purchases. Staying informed about local ordinances and potential city-specific regulations impacting small businesses is also advisable. The Texas economy, particularly in Dallas, is strong, leading to high demand for content creation, but this also means increased competition, making diligent financial management even more important. Remember to factor in the time spent on administrative tasks, like invoicing and tax preparation, when setting your rates.

For comprehensive information on Texas taxes and business regulations, visit the Texas Comptroller of Public Accounts website.

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: To qualify, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is solely dedicated to your writing work – it can’t double as a guest room or family space. “Regular use” means you use it consistently for your 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 essential tools like computers, cameras (if you create video content), and software subscriptions (Adobe Creative Cloud, Grammarly, website hosting, project management tools) are generally deductible as business expenses.
• 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. Keep detailed records of how you use these services to justify your deduction.

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

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 you are employed by someone else. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).