Best Tax Software for the Self-Employed of January 2025

5 Best Tax Services for the Self-Employed in 2024

Best Overall Tax Software for Self-Employed

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TurboTax Premium

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Why We Chose It

TurboTax is one of the oldest and best-known names in the tax software space with almost 40 years of experience in helping taxpayers simplify the tax filing process. At a price of $219 (plus $69 per state return), TurboTax Live Assisted Premium isn’t the cheapest tax software solution on the market. However, it offers self-employed tax filers above-average perks like unlimited live support from tax experts (including real-time chat) and an expert review of your tax return before you file.

Save up to an additional 10% off on TurboTax!

With TurboTax, you also have the convenience of an easy-to-use customer interface. Interview-style questions guide you through the tax return preparation process and mimic the feeling of talking to a live tax professional. As you answer simple questions, the software fills in the more complicated tax return on your behalf based on your answers. The software also includes Schedule C preparation support—the form that sole proprietors, freelancers and business owners need to include with their federal returns.

On the negative side, there are no free solutions options for self-employed filers. You’ll also have to put up with frequent prompts from the software offering you add-ons and upgrades (for additional fees, of course) when using this software solution. Read our TurboTax review.

Pros

• Numerous customer service options (e.g., phone, email and real-time chat) if you have questions while preparing your tax returns
• Audit support guarantee offered (advice only)
• Interview-style software platform that mimics chatting with a live tax expert
• Option to import data from QuickBooks to speed up the tax preparation process

Cons

• More expensive than some other self-employed tax software options
• Software promotes multiple upsell features throughout tax filing process
• Self-employed filers are only offered paid plans

Best Free Tax Software for Self-Employed

FreeTaxUSA

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Why We Chose It

FreeTaxUSA is a solid choice not just for self-employed tax filers but for anyone who wants to file a free federal tax return. But if you want add-on services like Pro Support ($39.99), Audit Defense ($19.99) or the Deluxe Edition upgrade ($7.99), you’ll need to be prepared to pay additional fees. State tax returns also feature an added cost of $14.99 each. So, the software isn’t completely free, even if you avoid upgrades.

The tax preparation software is also a bit lighter on features compared to some of its more expensive competitors. FreeTaxUSA offers little step-by-step guidance through the tax return preparation process. So, it’s best for those with uncomplicated tax situations who are comfortable preparing their own returns without outside advice. There’s also no option to have a tax professional prepare and file your tax return on your behalf if that’s an upgrade you desire. Read our FreeTaxUSA review.

Pros

• Free federal tax returns for everyone
• Free tax extension filing
• Guaranteed accuracy and maximum refund

Cons

• State tax returns require additional fee ($14.99 each)
• Chat and priority customer support only available with Deluxe Edition upgrade
• No professional tax preparation option

Best Affordable Tax Software for Self-Employed

TaxSlayer

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Why We Chose It

TaxSlayer is a lower-cost tax preparation software option for self-employed individuals compared to many other options on the market. With TaxSlayer, you can prepare both your federal and state tax returns for under $100 ($52.95 federal, plus $39.95 per state). You also don’t have to worry about paying extra for customer service and other important benefits that make the tax filing process easier to navigate for busy freelancers and self-employed individuals.

Like some other tax software, TaxSlayer designs its platform with a simple Q&A style format. You answer questions about your life (e.g., Do you have any 1099s?) and the software fills in your return based on your responses.

On a negative note, even though the TaxSlayer Self-Employed package includes unlimited access to tax professionals when you have questions about your returns, you can’t get answers to your questions in real time. Instead, you’ll need to submit your tax question online and wait for a tax pro to research the situation (if necessary) and contact you with a response. Read our TaxSlayer review.

Pros

• More affordable than other self-employed tax software options
• Unlimited phone, email and chat support
• Audit assistance for up to three years from an IRS enrolled agent

Cons

Cons:

• No real-time access to tax professionals when you need guidance
• No professional tax preparation option
• Tax pros not guaranteed to be CPAs, tax attorneys or enrolled agents

Best Full-Service Tax Software for Self-Employed

H&R Block

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Why We Chose It

H&R Block offers the most flexibility to self-employed individuals when it comes to tax preparation options. Starting at $85 (plus $37 per state return), you can choose to prepare your own taxes with assistance from a tax professional (via phone or chat) using H&R Block Self-Employed Online. H&R Block also gives self-employed tax filers (and others) the option to meet with a tax professional, either in person or virtually, and have that person prepare and file a tax return on their behalf.

Using H&R Block’s online tax preparation software feels similar to a conversation with a tax professional. The interview-style format features a Q&A format, and the software uses the answers you provide to fill out your tax return behind the scenes. For many taxpayers, the software is all they need to prepare and submit their tax return successfully.

However, some people like to know they have the ability to call in reinforcements if they run into problems. H&R Block has over 9,000 physical branches throughout the United States. The ability to set up an appointment and sit across from a live person if needed may be reassuring to some taxpayers. Others may be fine knowing they can call or message a tax pro with any questions that come up throughout the tax preparation process. Read our H&R Block review.

Pros

• Full-service tax preparation services available—virtually or in person
• Worry-Free Audit Support (advice only) if you receive an audit notice
• User-friendly interface that’s easy to navigate

Cons

• Price could change as you prepare your return
• More expensive than some alternative tax preparation software options
• Worry-Free Audit Support (including advice from an enrolled agent to represent you) requires an additional fee

Best Accuracy and Maximum Refund Guarantee

TaxAct

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Why We Chose It

Using TaxAct’s software to prepare your tax return may provide you with a little extra peace of mind thanks to the stellar guarantees the company offers its users. Not only does TaxAct provide a maximum refund guarantee to everyone who uses its products, the software company also pledges a $100,000 accuracy guarantee to its customers.

Essentially, if an error in the TaxAct software results in you receiving a small refund or owing a larger tax liability than you receive when you use the same data to prepare your tax return with another tax preparation product, TaxAct will pay the difference in the refund or tax bill (up to $100,000) and refund any applicable software fees you paid to the company. Likewise, if the IRS or a state tax agency audits you and you’re subjected to penalties or interest due to an error caused by the software, TaxAct will reimburse you for those costs (up to $100,000), plus refund any software fees you paid to the company.

TaxAct is also more affordable than a number of other competitors when it comes to self-employed tax preparation software options. However, if you want access to live tax expert assistance—a feature that is often important for complex self-employed tax returns—you’ll have to pay extra. The software also features fewer bells and whistles than some of its competitors offer and, as a result, it may not be as easy to prepare your tax return on this platform. Read our TaxAct review.

Pros

• More affordable than other competitors for self-employed tax filers
• Maximum refund and accuracy guarantee up to $100,000
• Unlimited calls with tax experts (if upgrading to live tax expert assistance)

Cons

• Live tax expert assistance costs extra
• Fewer features than what competitors offer
• Audit support is outsourced to a third party and requires an extra fee

What Is Tax Software for the Self-Employed?

Filing your taxes can be a complicated process, especially as a self-employed individual. When you’re self-employed, you often have to worry about calculating business income, tracking expenses, searching for write-offs and possibly paying self-employment or business taxes too, depending on your situation. However, unlike larger businesses, you might not have the budget to hire a certified public accountant (CPA) to handle the tax preparation and filing process on your behalf.

If your budget doesn’t allow you to hand off the preparation of your tax return to someone else, tax software could be the next best solution. Effective tax software for the self-employed should specialize in helping you identify tax deductions for freelancers, gig workers, independent contractors and others in similar situations. These types of software programs may also come with tools that feature basic profit and loss reporting and allow you to import data from your business accounting software, like QuickBooks.

The best tax software for the self-employed should create a user-friendly experience, making it feel like you’re working with a live tax professional as you prepare your tax return. Some software does a great job of simulating an interview-style format for self-employed tax filers, where you answer questions about your life and business and let the software do the hard work of filling out your tax returns in the background. This format may reduce the frustration of trying to decipher complicated tax jargon and makes the tax filing process easier to navigate.

You’ll also find tax software that offers additional features, like the ability to consult with live tax experts when questions come up during the tax preparation process. Tax returns for self-employed individuals can be more complex, so having the option to chat with a tax professional—via phone or online—could be a big perk. You might also have the option of someone proofreading your tax return before you submit it.

Finally, tax software for the self-employed makes it simple for you to file your tax returns—both federal and state—electronically. If you owe any taxes, you can submit the money you owe to the appropriate state or federal agencies. And if you’re expecting refunds from the IRS or a state tax agency, you can enter your direct deposit details in order to receive those funds in the fastest way possible.

Who Should Use Self-Employment Tax Software?

Self-employment tax software could be a helpful solution for many different types of people who aren’t traditional W-2 employees. According to a recent study by the National Bureau of Economic Research, as many as 15% of workers in the United States may fit into that category.

You might want to consider this type of tax preparation software if any of the following labels apply to you:

• Freelancers
• Sole proprietors
• Independent contractors
• Gig workers
• Side hustler
• Project-based worker

“Keep in mind that even though tax software can be a time and money saver, it’s important to be realistic about your situation. If your tax return winds up being more complicated than you anticipated, seeking advice from a tax professional might be the best way to move forward.”

— Michelle Lambright Black

Tax software for the self-employed might also make sense if you receive 1099s from clients who pay you throughout the year but do not withhold any taxes on those payments.

How To Choose a Self-Employment Tax Software Provider

There’s no perfect software solution when it comes to preparing your tax return as a self-employed person. Instead, the best tax software for the self-employed should come with a variety of features or benefits that offer you the most value.

For example, one self-employed person might need a tax software solution that’s affordable or even free due to budget constraints. Another self-employed person, however, might be so tight on time that they need the most user-friendly tax preparation software on the market to make their life easier during the tax return preparation process.

Below are six important details to look for as you compare the best tax software for the self-employed in 2024:

• User-friendly design: Life as a self-employed individual tends to be busy. So, finding a tax preparation software that’s simple and easy to navigate is essential. With ever-changing tax laws, complicated tax software can not only be frustrating and difficult to navigate, but it might lead to missed opportunities for savings or worse, like mistakes on your tax return.
• Customer support: It’s no secret that some tax software solutions outshine others where customer support is concerned. And if you’re a self-employed individual with a complex tax situation, the ability to access a tax expert for unlimited advice could be a huge perk. Compare the customer service options (e.g., phone, chat, screen share, etc.) that different companies have to offer. Also consider the experience of the tax professionals you may have access to as a customer. For example, will you be speaking with a CPA or enrolled agent or someone who has been trained in-house to answer basic tax questions? It’s also important to find out if customer support is available in real time or if you have to submit questions and wait for a response. Finally, it’s worth finding out if a tax software company offers the ability to prepare and file tax returns on your behalf in case you decide you want to hand off the entire process to someone else.
• Cost: The price of self-employment tax preparation software is another important factor to consider, including the cost of any add-ons or upgrades you might want to use. If your budget is tight, finding low-cost or free tax software might be a priority. But keep in mind that you may have to sacrifice ease of use or customer service perks in exchange for a lower price.
• Quarterly tax payment support: When you’re self-employed, you don’t have the convenience of an employer deducting taxes from your paycheck each pay period. Instead, the IRS and your state will expect you to send in estimated quarterly tax payments throughout the year or you could be subject to penalties. If you earn income in uneven amounts throughout the year, however, you might be able to try the annualized method to determine your estimated tax liability during the year instead. The best online tax software for the self-employed should be equipped to help you with more complicated tax situations like these and others.
• Guarantees: It’s a good idea to choose a tax software company that is willing to stand behind its product. Accuracy and maximum refund guarantees are common in this space, but some companies may offer better guarantees than others.
• Additional features: In addition to the details above, some tax software companies may offer extra perks that could help set them apart from the competition. For example, you might have the option to access free audit support if needed, meet with tax experts in person, import tax forms and more. While these added benefits may not be enough to make you choose a tax software provider on their own, they might tip the scales in a company’s favor if you’re having trouble choosing your favorite self-employed tax software solution.