Taxes for freelance writers

Freelance writing, editing and copywriting income is self-employment income, and so are royalties if writing is your business. Here's how it's taxed and how to stay ahead of it.

Which forms you'll get

Clients who pay you directly send a Form 1099-NEC. Starting with payments made in 2026, a client or platform only has to send you a Form 1099-NEC once it pays you $2,000 or more in a year (it was $600), under the One Big Beautiful Bill Act. The threshold is set to adjust for inflation after 2026. Payments that reach you through a card processor, payment app or marketplace are reported on Form 1099-K instead, generally once they pass $20,000 and 200 transactions in a year under federal rules (some states use lower thresholds).

Book royalties usually arrive on Form 1099-MISC. If you're in the business of writing, they still go on Schedule C and are subject to self-employment tax.

Either way, every dollar is taxable whether or not you get a form. Your own records are what count.

Common write-offs

Writing and research software, grammar tools and cloud storage.
Books, newspaper and journal subscriptions you need for your work.
Professional memberships and pitching or job-board fees.
Travel for reporting or research (keep notes on the business purpose).
A computer and the business share of your internet and phone.
Home office, if you have a space used regularly and only for work. The IRS simplified method is $5 per square foot, up to 300 square feet.
Health insurance premiums you pay yourself (self-employed health insurance deduction), if you aren't eligible for an employer plan.
Retirement contributions to a SEP IRA or solo 401(k), which lower income tax (not self-employment tax).

How much to set aside

Like designers, writers usually have low costs, so profit is close to income. Start with 25–30% of each payment and adjust for your state. Advances and royalties can be lumpy, so set aside from each check as it arrives rather than guessing at the end of the quarter.

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Frequently asked questions

Do I pay self-employment tax on book royalties?

If you're a professional writer, generally yes: royalties from your own work go on Schedule C. If writing isn't your trade or business, royalties go on Schedule E without self-employment tax. Ask a tax pro if you're unsure which applies.

A client paid me through PayPal. Will they send a 1099-NEC?

No. Card and payment-app payments are reported by the payment company on a 1099-K instead (if you pass its threshold). Report the income either way.

Sources

Estimates and general information, not tax advice. Check with a tax professional for your situation.