Freelance Writer Taxes in Texas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Texas

The Texas writing scene, from crafting compelling marketing copy to penning the next great novel, offers a wealth of opportunity for independent wordsmiths. However, alongside creative freedom comes the responsibility of managing taxes as a self-employed individual.

As a freelance writer, the IRS considers earnings from writing services as self-employment income. This means income must be reported on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, it also triggers the obligation to pay self-employment tax, which covers both Social Security and Medicare contributions. Remember, any net earnings exceeding $400 are subject to this tax.

How Texas Handles Gig Worker Taxes

The big perk in the Lone Star State is no personal income tax. This means Texas residents don’t file a state income tax return, unlike many other states. However, this doesn’t mean Texas is tax-free for freelancers. 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, it's a key part of the state's business tax structure. Even though most freelance writers won’t meet this threshold, understanding its existence is important. Texas does not have a state equivalent to the federal self-employment tax. Instead, the focus for Texas-based businesses is on sales tax if your writing services are considered taxable in Texas (generally, services are not taxable, but certain deliverables could be). It’s vital to consult with a tax professional to determine if your specific services require sales tax collection. Furthermore, if operating as a legal entity (like an LLC), there may be other state filing requirements. Staying informed about these nuances is crucial for maintaining compliance. For comprehensive information on Texas taxes, visit the Texas Comptroller of Public Accounts website.

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: This is a significant deduction for many freelance writers. To qualify, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for writing – it can’t double as a guest room or family space. “Regular use” means you use it consistently for your writing 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 of the trade is deductible. This includes computers, cameras (if used for content creation), printers, and software subscriptions like Adobe Creative Cloud, Grammarly, website hosting, and project management tools.
• 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, trips to the library for research, or other work-related errands. Keep a detailed mileage log if you choose to deduct these expenses.

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 FICA taxes withheld from employees’ paychecks, but as a self-employed individual, you are responsible for paying both the employer and employee portions. Remember to factor this into your overall tax planning.