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Taxes
Best Tax Software for The Self-Employed

Advertiser Disclosure Updated: Apr 16, 2024, 7:59am

Best Tax Software For The Self-Employed Of April 2024

Kemberley WashingtonCertified Public Accountant

Kemberley Washington is a tax journalist and provides consumer-friendly tax tips for individuals and businesses. Her work goes beyond tax articles. She has been instrumental in tax product reviews and online tax calculators to help individuals make informed tax decisions. Her work has been featured in Yahoo Finance, Bankrate.com, SmartAsset, Black Enterprise, New Orleans Agenda, and more. She frequently appears on NBC's WDSU news broadcast.

Kemberley Washington

Kemberley WashingtonCertified Public Accountant

Certified Public Accountant

Korrena BailieEditorial Director, Growth Projects

Korrena Bailie has over a decade of experience reporting and editing personal finance stories and reviews. Her work has been featured in Wirecutter, The New York Times, Bankrate and Credit Karma.

Reviewed

Korrena Bailie

Korrena BailieEditorial Director, Growth Projects

Korrena Bailie has over a decade of experience reporting and editing personal finance stories and reviews. Her work has been featured in Wirecutter, The New York Times, Bankrate and Credit Karma.

Editorial Director, Growth Projects

Reviewed

Updated: Apr 16, 2024, 7:59am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Note: The deadline to file your 2023 tax return was Monday, April 15, 2024.

When you work for yourself, it can be difficult to get your taxes done in the midst of the millions of other things you’re doing. Good tax software can help.

When choosing online tax software to handle your return during the current tax season, you should select an easy-to-use, budget-friendly product that provides excellent customer service and can help you find all of the deductions you’re entitled to.

Here are our top tax software picks for freelancers, self-employed people and 1099 contractors.

Tax Guides for 2024

Show Summary

Best Tax Software For Self-Employed Of April 2024

Best Self-Employed Tax Software for Customer Service

TurboTax Premium

Federal Filing Fee

$129

State Filing Fee

$64

On intuit's Website

$129

$64

Editor's Take

Self-employed folks may need extra help filing their tax returns because of the many tax deductions available to them. That’s why we chose TurboTax Premium. Yes, it is the most expensive tax software that we reviewed for the self-employed—but in exchange for higher costs, you get excellent customer service.

We loved that TurboTax comes with some great tools to help you through the filing process, including IRS audit risk assessment, a step-by-step navigation guide, and multiple ways to contact customer service. These services may be worth the additional cost if you’re worried that your return won’t be accurate, or that you won’t get all the deductions to which you’re entitled. Having so much access and assistance was a plus that really stood out to our team.

TurboTax’s customer service options include phone, email or chat. We called TurboTax customer service and we waited less than a few minutes to speak with a representative. During our call, we asked the representative how to report business income reported on a 1099-NEC, which they answered accurately.

Another feature that stood out to us is TurboTax’s chatbot, which can answer most tax filing questions, or, if not, direct you to articles on its website that address specific topics.

When you log into the program, you can opt to have a code sent to your phone instead of entering your password. This can come in handy if you can’t remember your password and hate using a password reset option. TurboTax is the only program we analyzed that offers this option.

The big downside? We got tired of TurboTax constantly trying to upsell you throughout the tax filing process with add-on features like IRS audit representation and identity theft insurance. Since these tools aren’t needed to complete your tax return, the interruptions can be aggravating when you’re trying to file.

Pros & Cons

A simple, easy-to-use questionnaire that helps you identify the self-employment tax filing forms required to complete your return
Great customer service with short wait times

Tries to upsell you throughout the program more than its competitors do

Best Low-Cost Tax Software for the Self-Employed

TaxSlayer Self-Employed

Federal Filing Fee

$67.95

State Filing Fee

$44.95

On TaxSlayer's Website

$67.95

$44.95

Editor's Take

TaxSlayer Self-Employed is a solid choice for your bottom line.

Our team selected TaxSlayer Self-Employed as the best low-cost tax software in this category because it charges you just over $100 to file your federal return and one state tax return. Similar self-employed options offered by TurboTax and H&R Block can charge close to $200 for filing your state and federal taxes.

And while another TaxSlayer competitor, Cash App Taxes, allows self-employed people to file tax returns completely free, it lacks in customer service. We gave customer service a lot of weight in our analysis, as taxes for the self-employed can be complex and unintuitive. With TaxSlayer, you get a lot of value for the price, including a priority phone line. By contrast, Cash App Taxes offers only email or chat support.

Another feature that stood out to our team: TaxSlayer bundles expert assistance into its cost, unlike other programs that will charge you extra for the privilege.

While TaxSlayer Self-Employed handles most self-employed returns with ease, it can be more challenging when your situation is more complex. For example, when we entered a tax situation involving a self-employed person with a depreciation expense, we found that the self-employed person would need to have an understanding of depreciation terms to file correctly.

You may not know how to input complicated tax items, such as the Section 179 deduction amount—and TaxSlayer’s messaging isn’t particularly helpful.

Pros & Cons

Cheaper than comparable products from competitors
Offers tax expert assistance at no additional charge
Provides simplified screens to input tax forms directly into the program

Doesn’t always explain in simple terms how complicated tax requirements, such as depreciation inputs, need to be handled

Summary: Best Self-Employment Tax Software

Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating - Image	Best For	Federal Filing Fee	State Filing Fee	Learn More CTA text	Learn more CTA below text	Learn More
TurboTax Premium		5.0		Best Self-Employed Tax Software for Customer Service	$129	$64	Learn More	On Intuit's Website
TaxSlayer Self-Employed		4.5		Best Low-Cost Tax Software for the Self-Employed	$67.95	$44.95	Learn More	On TaxSlayer's Website

Methodology

We began our analysis by looking at nine popular online tax software providers: Cash App Taxes, eFile.com, Free Tax USA, File Your Taxes, H&R Block, TurboTax, Jackson Hewitt, TaxSlayer and TaxAct.

We then narrowed down our list of finalists to analyze the overall best online tax software and one specifically for self-employed individuals. We included only online tax software companies that provide free tax preparation for simple tax filings for federal and state tax returns. That reduced our list to four: TurboTax, TaxSlayer, H&R Block and Cash App Taxes.

We evaluated the four finalists and created a tax filing profile for a freelancer with business income and deductions. We ran the profile’s details through the software and scored each one across four categories: ease of use, quality of customer service, pricing and help with filing.

To learn more about how Forbes Advisor rates tax products, and our editorial process, check out our Taxes Rating & Review Methodology.

What Does Online Tax Software Do?

Online tax software makes it easier for you to prepare your tax return. With easy navigation tools and simple question-and-answer formats, you’ll be prompted to enter your income and deductions to prepare an accurate tax filing. Most online tax software provides an option for you to import your tax forms, such as your W-2, directly into the program, which simplifies the preparation process.

Working with a tax preparer can be beneficial, and online tax software seeks to provide a similar experience with guided interviews so it feels as if someone is helping you along the way. However, if you are knowledgeable about filing taxes, you can choose to bypass these interviews and enter your information directly into the software. Of course, choosing this option allows you to complete your tax return faster.

Lastly, most online tax software allows you to file electronically, pay any taxes due and request direct deposit payments of any refund.

Who Should Use Self-Employment Tax Software?

If you’re a freelancer or independent contractor, you should choose an online tax software designed for self-employed people. Online tax software for self-employed people can ensure that you take advantage of various tax breaks that can reduce your tax liability. In addition, since the software is updated on a continuous basis, you’ll have the latest tax law changes at your fingertips.

Choosing a self-employed version of online tax software can also provide extra guidance, which is especially important if it is your first time filing your tax return. But you should be careful before choosing to prepare your own self-employed tax return. If your tax return ends up being a bit more complicated than you expected, it may be a good idea to hire a tax professional, such as a certified public accountant (CPA), to prepare your taxes.

The Importance of Using Tax Software

With the ever-changing tax laws, it is increasingly difficult to prepare a tax return by hand. Unless your tax filing includes a simple Form W-2 with only a few deductions, it is important to use tax software. When choosing a tax software package, you’ll want one that is easy to use and budget-friendly, allows for filing of any state tax returns you’re required to file and has great customer service.

If you’re seeking a no-cost way to file, you can take advantage of the IRS Free File program. The program allows taxpayers to file their federal tax returns for free, answering guided interview-style questions; in some cases, state tax filings are free as well. To qualify, your adjusted gross income must be $79,000 or less.

But even if you don’t qualify for the IRS Free File program, you can choose to file at no cost using the IRS Free File Fillable forms. They’re different from the Free File program. You’re required to do more work by completing the tax forms yourself without guidance, and there’s no option for state tax preparation and filing.

How To Choose Online Tax Software If You’re Self-Employed

When selecting the right online tax software option for you, consider the following:

What add-ons does the product include? For example, consider whether the product includes a tax deduction finding tool or access to a tax expert if needed.
Is there an additional fee for state tax filing? If so, how much? Does the product include a flat fee for multiple states?
What options are available for customer service?
Does the product help you find or discover tax deductions to which you’re entitled?

Pro Tip

You can deduct mileage traveled for business purposes. Generally, you can choose one of two methods: actual expenses or the standard mileage rate. If you drive your car for both business and personal purposes, you’ll have to figure out the percentage of business use.

Bottom Line

Choosing the best software designed for self-employed individuals can help you prepare your tax return quickly and accurately. Before selecting the necessary online tax software, get an understanding of how it works and do your research.

Frequently Asked Questions (FAQs)

What are the best ways to file taxes if you're self-employed?

You can choose online tax software that fits your needs to file your self-employed tax return. However, if your tax return is more complicated, you should consider hiring a professional, such as a certified public accountant (CPA) or enrolled agent (EA), to prepare it for you.

When are tax payments due for the 2024 tax year for self-employed filers?

Self-employed filers are generally required to pay quarterly estimated taxes and file a return annually. The 2024 quarterly tax payments are due April 15, June 17 and September 16, 2024. The final quarterly tax payment is due January 15, 2025. You can use Form 1040-ES, “Estimated Tax for Individuals,” to figure the amount of your quarterly estimated taxes. Returns for tax year 2023 were due Monday, April 15, 2024.

How do I file my taxes for free if I am self-employed?

You can file your taxes for free using the IRS Free File if you have an adjusted gross income (AGI) of less than $79,000. Before using this service, you should browse each product offering to see which free product works best for you. Free File supports self-employment tax forms, including Schedule C and Schedule SE.

Can I deduct my self-employment taxes on my tax return?

Yes, the IRS lets you take a deduction equal to one-half of your self-employment taxes on your federal tax return. As a self-employed person, if your business reports a profit—for the IRS, that means business income minus deductions—you have to pay self-employment taxes, including Social Security and Medicare taxes.

When should I consider hiring a CPA if I’m self-employed?

If you’re worried you’ll make a mistake on your return or your return is very complex, consider hiring a certified public accountant (CPA). Here are a few scenarios where it may be better to turn your taxes over to a pro:

• You started your business during the current tax year.
• You have employees.
• You want to reduce your self-employment taxes.
• You want to max out your contributions to a SEP IRA.

What business deductions can I claim as a freelancer?

Freelancers can claim many deductions to reduce their tax liability. Depending on the type of work you do, the deductions you could claim might include:

• Credit card interest
• Training and conferences
• Self-employed health insurance premiums
• Business travel
• Cell phone services

How much should I put away for taxes if I am self-employed?

Typically, the amount you should set aside depends on your tax bracket and the tax deductions to which you may be entitled. As a general rule, it may be wise to set aside about 20% of your self-employed earnings, or you can use our self-employment tax calculator to estimate the amount.

Next Up in Taxes

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

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Kemberley Washington

Certified Public Accountant

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