Being your own boss has its perks, but filing your taxes when you’re self-employed can get complicated. Unlike with a W-2 job, there’s no one withholding taxes for you, you’re expected to file quarterly taxes and you’re also responsible for paying self-employment taxes. You can deduct certain expenses, but the IRS rules for doing so can be tricky.
As a certified financial planner and multi-year freelance writer, I personally understand how stressful tax season can be, especially when you have a pile of 1099-NECs. We’ve tested, evaluated and scored several major tax-filing services looking at price, affordability, eligibility, use cases, experience, ease of use, features and access to expert support. Here are the best services for the job.
SERVICES AND SOFTWARE DEALS OF THE WEEK
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$90 (save $35)
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$90 (save $110)
Best overall
H&R Block
Pros
- Free federal and state returns for simple returns
- Allows import for major tax forms
- AI-powered tax assistant feature
- Access to tax pros online and in person
- Transparent pricing
Cons
- Paid tiers are more expensive than many services
- Online version doesn’t let you have a pro prepare your return
Price: Self-employed: $85, plus state filing fees
Why I like it: H&R Block’s Self-Employed package lets you snap a photo of each 1099-NEC and upload them, which can save freelancers and gig workers who receive lots of these forms a significant amount of time. There’s also extensive support for tracking business expenses and calculating deductions.
H&R Block’s Self-Employed package is generally cheaper than TurboTax’s packages that provide support for freelancers and independent contractors. Though TurboTax’s Expert Assist tier pricing starts at $39 (significantly less than the $85 for H&R Block’s Self-Employed package pricing), TurboTax tried to charge me $120 or more when I prepared my taxes using several scenarios involving self-employment.
Who it’s best for: H&R Block is a great choice for freelancers, gig workers and independent contractors who want guidance on how to deduct expenses. Its step-by-step interview process walks you through common self-employed deductions, such as home office expenses, but it also looks for industry-specific deductions. Unlimited expert help is included, so it’s a good option if you’re relatively new to self-employment and aren’t sure how much guidance you need.
Who shouldn’t buy it: If you have 1099-NEC income but aren’t deducting business expenses, you can stick with H&R Block’s Deluxe package, which is significantly cheaper at $35. Occasional gig workers and side hustlers may not need all the bells and whistles of H&R Block’s Self-Employed package. Several tax services let you file Schedule C for cheaper, though you’ll usually get less support.
Pros
- Free option for simple filers
- Covers most tax forms and situations
- Clean interface and design
- Solid import tools
- Robust tax education and guidance
Cons
- More expensive than competitors
- Price structure is confusing
- Many situations trigger upgrades
- We found the constant nudges to upgrade to pricier tiers annoying and disruptive
Prices:
- Expert assist: $79 to $209, plus state fees (unlimited expert access included)
- Expert full service: Starts at $150, plus state fees (unlimited expert access + tax pro files your return)
Why I like it: Though TurboTax has packages designed specifically for business owners, most freelancers and self-employed filers can use TurboTax’s Expert Assist or Expert Full Service. Both versions let you snap a photo of each 1099-NEC and 1099-K with your phone, and then TurboTax will autofill the information. If you’re self-employed and find yourself juggling tax forms from multiple clients, this feature will save you significant time.
TurboTax provides guidance on common self-employed deductions, such as the home office deduction, and also has tools to find uncommon tax credits and deductions for self-employed filers. If you deduct your mileage and vehicle expenses, it helps you figure out whether it’s better to claim actual expenses or use the standard mileage rate.
Who it’s best for: TurboTax’s Expert Assist and Expert Full Service packages are great for freelancers, gig workers and self-employed filers who want to simplify the filing process. With Expert Assist, you get unlimited expert access and a final review of your return, though you need to file yourself. With Expert Full Service, a tax pro prepares and files your entire return. Both are good choices for those who want guidance through self-employment tax issues.
Who shouldn’t buy it: If you own a small business, like a single- or multimember LLC, partnership or S-corp, you may need to upgrade to a TurboTax Business product. TurboTax also isn’t great for super budget-conscious filers, as it’s known for dynamic pricing and add-ons.
Best live expert support options
TaxAct
Pros
- Free version for simple filers
- Supports most federal tax forms
- Easy guided interview process
- Access to professional help with a per session fee
Cons
- State returns are extra
- Cost structure can be confusing
- Import tools are limited
- Mobile app only for Android
Price: Entrepreneur Self-Employed: $70, plus state fees
Why I like it: TaxAct has one of the cheaper packages designed for self-employed people. It walks you step by step through filing Schedule C (used to report business profits and losses) and Schedule SE (used to calculate self-employment taxes) and helps you calculate deductions. Various levels of expert support are available. You can pay per session, buy the XPert Assist package for unlimited help as you DIY your return or choose the XPert Full Service package to have a professional prepare and file your return.
Who it’s best for: TaxAct’s importing tools are limited, so it’s best suited for freelancers and self-employed people who don’t receive lots of 1099-NECs. Tools for calculating expenses and deductions also rely heavily on manual input. The Entrepreneur Self-Employed package works best for those who don’t have complex deductions or expenses.
Who shouldn’t buy it: If you aren’t comfortable with manually inputting lots of information, TaxAct isn’t a good choice for you. The software works best for those who have a working knowledge of business tax concepts. For example, I wouldn’t recommend it for someone who needs to depreciate expenses unless they have working knowledge of the concept. If you’re not willing to do some extra lifting, paying extra for H&R Block or TurboTax is probably worth it.
Tax software: Comparing self-employment packages
|
Product |
Superlative |
Overall score |
Self-employed package pricing |
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H&R Block |
Best overall |
8.4 |
Self-Employed: $85, plus state filing fees |
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TurboTax |
Best guidance for self-employed filers |
8.2 |
Expert Assist: $39 to $159, plus state fees Expert Full Service: Starts at $150, plus state fees |
|
TaxAct |
Best live expert support options |
6.8 |
Entrepreneur Self-Employed: $69.99, plus state fees |
|
TaxSlayer |
Most affordable for self-employed |
6.9 |
Self-Employed: $52.99, plus state filing fees |
Other tax software we tested
While we tested seven major at-home tax services, not all made our list of favorites for contractors, freelancers, gig-workers or self-employed taxpayers. Here’s a few more options to choose from:
FreeTaxUSAis an affordable choice for simple W2 filers taking the standard deduction because it offers 100% free federal filing with a highly transparent pricing structure. It’s not the best fit for self-employed taxpayers who need significant guidance since the platform offers limited features compared to premium competitors. You’d need to upgrade to FreeTaxUSA’s Pro Support to get expert help, and for that price you may as well buy a premium service in H&R Block or TurboTax.
Cash App Taxes is an excellent 100% free option for W-2 filers taking the standard deduction because it offers both federal and state filing without hidden costs, surprise upgrades or constant nudges to purchase more expensive tiers. However, it isn’t a good choice for the self-employed or those receiving multiple 1099-NECs because the platform requires extensive manual data entry and calculations for these more complex tax situations. Furthermore, while self-employed individuals may benefit from professional advice, Cash App Taxes provides no access to tax experts or live support or guided assistance found in premium services such as TurboTax or H&R Block.
With its $25 flat fee for both federal and state returns, Jackson Hewitt Online is a budget choice for W-2 filers taking the standard deduction who need to file in multiple states. However, we don’t recommend Jackson Hewitt Online if you’re self-employed because it lacks the importing tools for tax documents and the robust educational resources necessary for complex filings.
How do taxes for freelancers and self-employed people work?
When you’re self-employed or a freelancer, you’re responsible for withholding taxes on your income. You need to withhold enough to cover your income taxes and self-employment taxes. (When you have a W-2 job, you and your employer each typically contribute 7.65% of your salary toward Social Security and Medicare, but when you’re self-employed, you’re responsible for both halves, or 15.3% of your income. Self-employment taxes cover the share that an employer would typically pay.)
Freelancers typically receive Form 1099-NEC from clients that show their earnings. If you do gig work or you’re paid on a platform like Venmo or PayPal, you usually receive Form 1099-K. You use the combined information on these forms to calculate your income, then you deduct your expenses. You report your net income or loss by filing Schedule C.
The IRS typically expects you to pay quarterly taxes when you’re self-employed. Quarterly taxes deadlines are usually Jan. 15, April 15, June 15 and Sept. 15.
What is tax software for self-employed filers and freelancers?
Tax software for self-employed filers and freelancers provides support for filing Schedule C. Usually, it helps you tally your income from 1099-NECs and 1099-Ks. Depending on the platform, you may be able to upload these documents or you may have to manually input it. Then it asks you questions about your expenses to help you determine what you can deduct. Finally, it calculates your net income or loss for the tax year.
A few platforms let you file Schedule C for free, but those that offer free filing provide minimal guidance. If you want help calculating your income and expenses, you’ll almost always have to choose a paid package.
Common self-employed tax breaks
When you’re self-employed or you freelance, you may be eligible for deductions that you wouldn’t qualify for as a W-2 employee. Common self-employed tax breaks include:
- Home office deduction (Form 8829): If you have a part of your home that you use exclusively for business purposes, you may be able to deduct the relative portion of your expenses. For example, if you have a 1,000-square-foot home and a 150-square-foot room that’s used for an office, you could deduct up to 15% of your rent/mortgage payment, insurance, maintenance and utilities.
- Health insurance premiums (Form 7206): You can usually deduct health insurance premiums when you’re self-employed. But you can’t take the deduction for any month you were covered by an employer plan (including a spouse’s employer).
- Vehicle expenses: If you use your vehicle for business purposes, you may be able to deduct costs using either the standard IRS mileage rate or by keeping track of your actual expenses.
The list above certainly isn’t all-inclusive. The best tax filing software for self-employed people and freelancers will search hundreds of tax credits and deductions that may apply to your situation. You can also get help with calculating and deducting depreciation, which is the gradual loss in value of items you use for business, such as laptops, equipment and vehicles.
Methodology: How we test and evaluate tax software
We tested each platform on mobile and desktop using the same basic tax scenarios. Here’s what we considered for each of the five categories.
Price and affordability
We looked at each price tier and how it stacked up against competitors’ similar offerings. Availability of a free option was important, but we also considered the likelihood that a user could actually file for free without being forced to upgrade. We also looked at how transparent each service was with their pricing. Services lost points if they didn’t clearly disclose costs of add-ons upfront.
Eligibility and use cases
We tested each software using the same basic filing scenarios, including simple filing with a W-2 and the standard deduction, itemized returns, investment income, rental income and small business/self-employment filings. We gave maximum points when a service could handle a broad range of filing situations without requiring extensive manual input or calculations.
Experience and ease of use
The best tax filing services make preparing your return as simple as possible. To evaluate experience and ease of use, we looked at the setup process (including whether you could simplify it by importing last year’s tax return or uploading your W-2). We also considered whether the service makes filing easier with a straightforward interview process. Each software lost points for things that make for a poor user experience, such as confusing navigation or requiring you to start over if you downgraded to a less expensive tier.
Features
Many tax software programs have an array of tools to ensure your return is accurate and maximize your refund. We have top ratings in this category for services with robust error-checking tools, audit defense services, a maximum refund guarantee and an option to receive an advance on your refund.
Expert support and tax professional access
Pretty much every filing service lets you DIY with your return, but sometimes you need professional guidance. We gave top points to services that offer access to a CPA, EA or other tax pros, as well as those that provide easy access to customer service and technical support.
Scoring approach
Each category received a score on a scale of 1 to 10. The overall score was an evenly weighted average of each category, based on performance relative to competitors and the needs of typical DIY filers, as well as those with common filing situations that require extra guidance or access to a tax professional.
FAQs
What expenses can I deduct as a freelancer?
As a freelancer, you may be able to deduct home office expenses, vehicle expenses, health insurance premiums, self-employment taxes and many other expenses. The rules are complicated, so it’s important to use a tax filing software that includes support for freelance deductions or work with a tax pro.
Can I file for free on TurboTax if I’m self-employed?
Generally, no. You’ll need to upgrade to a paid package for Schedule C support.
What IRS forms do freelancers need?
Freelancers file Schedule C to report income and expenses and Schedule SE to calculate Social Security and Medicare taxes. Income is most commonly calculated using information on 1099-NECs issued by clients to non-employee contractors and 1099-Ks issued by third-party payment networks.
Will I pay tax on tips in 2025?
Beginning with the 2025 tax year, employees in service roles where tipping is customary can now exclude up to $25,000 in «qualified tips» from their taxable income. This new deduction is available to all eligible taxpayers, providing a significant tax break whether you choose to itemize your deductions or take the standard deduction.
