Best Tax Software for Freelancers

When you earn money as a freelancer, contractor or gig worker, tax filing changes. You report business income and expenses on Schedule C, calculate self-employment tax on Schedule SE and often make estimated payments during the year. Software can handle all of this, but the price for the same return varies enormously. This guide compares the main choices and shows what each one costs in a typical case.

What freelancers need to file

• Schedule C: reports business income and expenses.
• Schedule SE: calculates self-employment tax, which covers Social Security and Medicare (about 15.3% of net earnings, with part of it deductible).
• Forms 1099-NEC and 1099-K: income reports from clients and payment platforms.
• Estimated payments: usually paid quarterly using Form 1040-ES.

Price snapshot for a Schedule C return

Price snapshot checked October 20, 2026 for tax year 2025 returns filed in 2026. FreeTaxUSA currently lists federal returns at $0 and current-year state returns at $15.99; support add-ons and promotional tax-software prices vary. This is not a price quote for tax year 2026 returns, which are generally filed in 2027. Confirm the final amount on the provider’s own checkout page before filing.

Cash App Taxes

It supports Schedule C and investment income at no cost, with no income limit and a free state return for one state. It is a strong fit for a straightforward side business where you are confident reporting your own income and expenses. It offers limited human help, so use it if you do not expect to need questions answered.

FreeTaxUSA

Federal filing is free for every situation, including self-employment. You pay a flat state fee and optionally current price for the optional Deluxe support add-on, which adds audit support, live chat and free amended returns. For many freelancers this is the best balance of price and capability. The interface is plain, so expect to bring your own knowledge of deductions.

TurboTax Premium

TurboTax has merged its old Self-Employed plan into Premium. You pay more, and in exchange you get a thorough interview that helps you find business expenses, as well as optional expert help. If you are new to self-employment and do not want to miss deductions, the cost can be worthwhile, but compare it with the cheaper options first.

H&R Block Self-Employed

H&R Block’s plan includes expert help in the paid plans, and it keeps a separate Self-Employed tier. It costs less than TurboTax and more than TaxAct on the federal side. It is a reasonable choice if you want guidance and a possible office visit for questions.

TaxAct Self-Employed

TaxAct’s tier is cheaper on the federal side but charges more for the state return, so the total lands near H&R Block’s. It can suit filers in states without income tax. See H&R Block vs TaxAct.

Deductions freelancers often forget

• Home office: a dedicated workspace may qualify.
• Mileage: business driving, if you keep a log.
• Software and subscriptions used for work.
• Self-employed health insurance premiums.
• Retirement contributions to a self-employed plan.
• The qualified business income deduction, which can apply to some filers.

Rules and limits change, and software explains which apply to you, so use the tool’s prompts rather than guessing.

Habits that make filing easier

1. Keep business money in a separate bank account.
2. Track income by client and expenses by category all year.
3. Save receipts and a mileage log.
4. Set aside a share of each payment for taxes.
5. Record each estimated payment you make.

When to hire a professional

If you run an S-corporation, have employees, sell across several states, have a large swing in income or got an IRS notice, a CPA or enrolled agent can be worth the fee. Software is designed for ordinary individual returns and does not give personal advice.

What self-employment tax can look like

As an example, say you net $40,000 from freelancing after expenses. Self-employment tax is calculated on about 92.35% of that amount, or $36,940, at roughly 15.3%, which comes to about $5,650 before any limits or other rules. That is separate from regular income tax, and half of it is generally deductible. Good software does this math for you, but the example shows why setting money aside matters.

Estimated payments

If you expect to owe tax, the IRS generally expects payments through the year, usually in April, June, September and January. Missing them can lead to an underpayment penalty. Many tools can estimate next year’s payments from your return, and you can use the IRS Form 1040-ES worksheet to check.

Common mistakes

• Mixing personal and business spending, which makes deductions harder to prove.
• Forgetting self-employment tax when planning how much to save.
• Not tracking mileage until the end of the year.
• Assuming a 1099-K or 1099-NEC is the whole picture, when income paid without a form is still reportable.

Choosing by comfort level

If you know your numbers and only need a place to enter them, a free-federal tool is usually enough. If you are in your first year of self-employment and unsure what counts as a deduction, a guided tier or a one-time session with a tax professional may save more than it costs. Many freelancers start with a cheap tool and add help only in the years their situation changes.

Official sources and references

Use these first-party pages to verify current plans, prices, features and eligibility. Offers and terms can change by country, billing period and date; confirm the details that apply to you before buying. Links below are provider documentation, not independent endorsements.

• IRS tax filing information
• TurboTax online filing and pricing
• FreeTaxUSA pricing
• H&R Block online tax filing
• TaxAct individual tax software