Self-employment offers freedom, but filing taxes as a freelancer or gig worker can be complex. Unlike traditional W-2 employment, there’s no automatic tax withholding, meaning you’re responsible for quarterly payments and self-employment taxes. The IRS rules for deductions can also be tricky. To help navigate this, we’ve evaluated leading tax-filing services based on price, features, ease of use, and support, particularly for those with 1099 income.
Top Picks at a Glance
H&R Block stands out as the best overall choice, especially due to its AI-powered assistance and extensive support for tracking business expenses. Its Self-Employed package makes uploading 1099-NEC forms simple, a significant time-saver for those receiving multiple payments. Pricing starts at $85 plus state fees.
TurboTax excels in guided filing, offering Expert Assist and Full Service options. It simplifies tax form entry with mobile photo uploads for 1099s, and provides solid guidance on deductions like the home office expense. Expect costs from $79 to $209 plus state fees.
TaxAct delivers affordability. Its Entrepreneur Self-Employed package ($70 plus state fees) walks you through Schedule C and SE calculations step-by-step. Expert support is available per session or with unlimited access via XPert Assist.
TaxSlayer provides a budget-friendly option at $53 plus state fees. Its interface is straightforward, automatically calculating Schedule SE. However, it lacks advanced tools for complex business expenses and limited expert support.
Why This Matters: The Self-Employment Tax Landscape
Freelancers face unique tax obligations. Unlike employees, they pay both the employer and employee shares of Social Security and Medicare (15.3% total). This is why quarterly tax payments are crucial to avoid penalties. Proper expense tracking and deduction claiming can significantly reduce taxable income, but navigating IRS rules requires either diligence or professional assistance.
H&R Block: The AI-Powered Solution
H&R Block’s Self-Employed package stands out for its usability. The ability to photograph and upload 1099-NEC forms saves hours of manual data entry. The software also walks you through industry-specific deductions, ensuring you don’t miss potential savings. Unlimited expert help is included, ideal for those new to self-employment.
- Price: $85 + state fees
- Key Feature: AI-powered form upload and deduction guidance
TurboTax: Guided Filing with Expert Support
TurboTax simplifies the process with its Expert Assist and Full Service tiers. The mobile photo upload for 1099s streamlines data input. Guidance on deductions, like the home office expense, is clear. The Full Service option lets a professional file your return entirely.
- Price: $79–$209 + state fees
- Key Feature: Expert assistance options and streamlined 1099 import
TaxAct: An Affordable Alternative
TaxAct’s Entrepreneur Self-Employed package is the most cost-effective for those familiar with basic tax concepts. While it lacks the advanced importing tools of H&R Block or TurboTax, it walks you through Schedule C and SE calculations. Expert support is available on a per-session basis.
- Price: $70 + state fees
- Key Feature: Low cost with tiered expert support options
TaxSlayer: Simple and Budget-Friendly
TaxSlayer provides a no-frills option for those comfortable with manual data entry. It handles Schedule C and SE calculations efficiently, but lacks advanced features. Expert support is limited to general questions, making it best for straightforward tax situations.
- Price: $53 + state fees
- Key Feature: Lowest price with basic self-employment tax filing tools
How Self-Employment Taxes Work
Freelancers and gig workers receive Form 1099-NEC from clients and Form 1099-K from payment platforms. These forms report earnings, which you use to calculate net income after deducting business expenses. The result is reported on Schedule C, and self-employment taxes are calculated on Schedule SE. Quarterly payments are required to avoid penalties.
Other Options
FreeTaxUSA is a budget pick for simple filers, but lacks the robust features self-employed workers need. Cash App Taxes is free for W-2 filers but requires manual data entry for 1099s. Jackson Hewitt Online is affordable for W-2 filers but doesn’t offer the tools or support necessary for complex self-employment taxes.
Conclusion: The best tax software depends on your needs. H&R Block and TurboTax offer comprehensive features and support, while TaxAct and TaxSlayer provide more affordable options for those comfortable with manual entry. Choosing the right software simplifies self-employment taxes, ensuring accuracy and maximizing deductions.
