A Freelance Writer's Guide to Taxes in 2025
Freelance work is unique in many respects. It comes with plenty of freedom and flexibility, but working for yourself also means your taxes look different from most others. As the 2025 tax season approaches, it’s a good idea to go over these differences so you know what to expect.
How Are Taxes Different for Freelancers?
At least 9.1 million people in the United States are self-employed, making up roughly 5.7% of all nonagricultural workers. Whether you fall into that category or just freelance on the side, you should know that your taxes won’t be the same as the W2 process you’re used to. Here’s a closer look at how freelance tax considerations are unique.
Annual Taxes
Filing your annual taxes in April looks similar, no matter what kind of employment situation you’re in. Like everyone else, you’ll report your income to the IRS. However, it’s important to note that you will pay taxes on your profit, not just your total revenue, which can reduce your taxable income.
Further, while the overall process may be similar, the documents you receive and the forms you fill out will be different. As a freelancer, instead of a W-2, you’ll receive 1099 forms from any client who pays you $600 or more. It’s worth noting that some clients may not issue a 1099 if they pay through certain platforms (like PayPal or other payment processors), so freelancers should keep their own records. You’ll report this income on a Schedule C, which is a form not typically filled out by W2 employees, that is attached to your tax return.
On top of the normal income tax, you’ll need to pay self-employment taxes. This follows a rate of 15.3% and covers social security and Medicare payments, which would normally come out of your paycheck in a W2 setup.
Many W2 employees tend to get money back in their annual returns, as taxes have already been withheld from their paychecks throughout the year. However, as a freelancer without a pre-taxed salary, you’ll have to pay this amount to the IRS.
Quarterly Taxes
In addition to your annual return, you’ll have to file quarterly taxes as a freelancer. Every quarter, you’ll pay the IRS estimated taxes. You can estimate roughly how much you’ll owe for the year using Form 1040-ES based on your income and expenses.
After completing your taxes for the first time as a freelancer, the IRS will provide you with guidance on how much to pay in quarterly taxes. You will essentially take your estimated annual tax liability and split the amount into four payments, making one payment every three months.
While quarterly payments ease what you’ll have to pay in your annual return, they’re not an optional alternative. Failing to make quarterly payments on time results in a 0.5% penalty for each late month.
Best Tax Practices for Freelance Writers in 2025
Getting used to the unique freelance tax setup can be an adjustment. Here are a few best practices to follow to help you in that journey.
1. Write Down Important Dates
One of the most crucial steps in freelance tax preparation is knowing when things are due. Write down and set alerts for incoming deadlines so you don’t miss any payments. The big four to know are:
January 15 — Q4 estimated taxes from the prior year due
April 15 — Q1 taxes from the current year and annual return due
June 15 — Q2 taxes from the current year due
September 15 — Q3 taxes from the current year due
2. Keep Thorough Records
When it comes time for your annual return, you’ll compare what you paid in quarterly taxes to what you actually made in the year. Unlike an ordinary employee, though, you won’t have a W2 to refer to. As a freelancer, you’re in charge of all your salary documentation, so get in the habit of keeping detailed records of what you earn.
Some clients or payment services will give you a Form 1099 to show what you received for your work, but not all do. Some of the best places to sell your work don’t give every user a 1099, so it’s best to manually track everything, too. Consider using spreadsheets or accounting software. I recommend using Bonsai, an all-in-one solution for small business that includes bookkeeping, contracts, proposals, scheduling, and more.
3. Capitalize on Deductions
Freelancers should also take advantage of as many deductions as possible to minimize their taxes. Some retirement plan contributions are tax-deductible, so look into these accounts for your long-term savings. You should also keep track of anything you spend for work — like computers, your internet bill and work-related software — because you can likely write much of it off. Tax services like H&R Block and TurboTax will help you find any possible deductions. The specifics of what can be deducted can change, so it’s advisable to consult the IRS guidelines or a tax professional.
4. Budget for Tax Payments
Quarterly tax payments can easily disrupt your budget if you aren’t careful. Consequently, it’s best to set money aside every month to prepare for them. You can use Form 1040-ES to determine how much you’ll need each quarter. Still, you may want to save even more money in your budget in case you need to pay more in your annual return.
5. Keep Your Eye Out for Future Changes
Finally, you should know that your tax situation may change from year to year. In 2025, for example, the IRS raised the standard deduction by $400 for single filers and adjusted its tax brackets. Both impact how much you pay quarterly and annually.
Read financial news and keep up with IRS announcements to know what’s changing each tax season. Preparing for these adjustments will help you budget appropriately.
Freelancers Face Unique Tax Situations
Working as a freelance writer is a rewarding experience, but you should be aware of the special tax circumstances it entails. Once you know what to expect, there’s nothing to fear. Proper planning will let you work freely without worrying about unexpected tax hiccups.
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