Freelance Writer Taxes in Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Freelance Writer in Virginia

Virginia’s thriving literary scene and growing digital economy offer abundant opportunities for freelance writers, but navigating the tax landscape requires careful attention. As a self-employed writer in the Commonwealth, understanding both 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. Furthermore, earnings exceeding $400 necessitate the payment of self-employment tax, which covers both Social Security and Medicare contributions. Accurate record-keeping throughout the year is paramount to ensure compliance and maximize potential deductions.

How Virginia Handles Gig Worker Taxes

As a resident of Virginia, a state income tax return is required, regardless of income level. Virginia operates on a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Virginia’s income tax rates are expected to remain consistent with prior years, though it’s always best to confirm with the Virginia Department of Taxation. Self-employed individuals primarily use Form 505, Virginia Individual Income Tax Return, to report their income. Schedule C federal income will flow to Form 505. Virginia also requires reporting of self-employment tax paid on the federal return.

Virginia allows for a standard deduction, but freelance writers should carefully consider if itemizing deductions, including those related to business expenses, will result in a lower tax liability. Virginia’s tax laws generally follow federal guidelines regarding many business deductions, but it’s essential to verify specific rules. For example, while Virginia generally conforms to federal depreciation rules, there may be slight differences. Additionally, Virginia offers several credits and deductions that may be beneficial to self-employed individuals, such as the Virginia Earned Income Tax Credit. Staying informed about these changes and seeking professional advice when needed is highly recommended. You can find comprehensive information and resources on the Virginia Department of Taxation website: https://www.tax.virginia.gov/

Key Tax Deductions for Home-Based Freelance Writers

• Home Office Deduction: This 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 only used for work; a dining room table used for both meals and writing doesn’t qualify. “Regular use” means the space is used consistently for work. Taxpayers can choose between 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 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. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If a portion of internet and phone usage is directly related to business activities, that percentage can be deducted. Maintaining a detailed log of business-related usage is crucial to substantiate this deduction.

Note on Mileage: As a home-based worker, mileage deductions are less common, but can be claimed for trips to client meetings, research locations, or other work-related errands. Keep a detailed mileage log including dates, destinations, and business purpose.

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. Taxpayers can deduct one-half of their self-employment tax from their gross income when calculating their adjusted gross income (AGI).