7 Best Self-Employed Tax Software Reviewed & Ranked for 2024

Ask any self-employed individual, and they will share the advantages and disadvantages of being their boss. One major benefit is the freedom to set their working hours. However, when tax season arrives each year, the responsibility of being in charge suddenly loses its appeal.

Fortunately, this situation has a positive aspect: self-employed tax software can simplify your life and ease stress during tax season. The ideal tax software for self-employed individuals should be affordable and easy to use. It should also help identify deductions that can reduce your overall tax liability while ensuring you complete all necessary forms for an accurate self-employed tax return.

Here are our top picks for 2024's best self-employed tax software options designed for self-employed people. Whether you work as a freelancer, independent contractor, gig worker, or any other type of small business owner, these software solutions have the potential to enhance your experience when it comes time to prepare your upcoming taxes.

>> Consider TurboTax >>

7 Best Tax Software for Self-Employed

• TurboTax – Best Self-Employed Tax Software Overall 
• TaxSlayer – Best Affordable Software
• H&R Block – Best for Variety of Support Options
• TaxAct – Best for Accuracy Guarantee
• Jackson Hewitt – Best User Interface
• FreeTaxUSA – Best Free Tax Software
• Cash App Taxes – Best for Freelancers

TurboTax – Best Self-Employed Tax Software Overall

With nearly four decades of experience assisting taxpayers with their tax filings, TurboTax has established itself as a trusted and well-known brand in the self-employed tax software industry. While there may be more affordable options, TurboTax Live Assisted Premium, priced at $209 (plus an additional $64 for state returns), offers exceptional benefits to self-employed individuals.

These perks include unlimited access to live support from knowledgeable tax experts available for real-time chat assistance. Users can benefit from having their tax returns expertly reviewed before filing them.

TurboTax provides users with a user-friendly interface for their convenience. Preparing tax returns is made simple with interview-style questions that simulate the experience of consulting a live tax professional.

By answering these straightforward questions, the software automatically completes the more complex aspects of your tax return based on your responses. TurboTax supports preparing Schedule C, an essential form for sole proprietors, freelancers, and business owners to include in their federal returns.

However, TurboTax doesn’t offer free options for self-employed individuals. While using this software solution, users may encounter frequent prompts urging them to purchase add-ons and upgrades at an additional cost.

Pros

• Various customer support avenues are available (such as phone, email, and live chat) for inquiries during tax preparation
• Guaranteed audit support provided (limited to advice)
• Software platform designed in an interview format resembling interaction with a live tax expert
• Capability to import QuickBooks data to expedite tax preparation

Cons

• Pricier compared to certain other self-employed tax software choices
• The software actively encourages additional purchases during the tax filing process
• Only paid plans are available for self-employed filers

>> File Your Taxes Online With TurboTax >>

TaxSlayer – Best Affordable Software

TaxSlayer self-employed tax software presents itself as the most affordable choice, and it could be the perfect option for business owners with uncomplicated returns. Like its rivals, TaxSlayer provides quarterly tax reminders, assistance with 1099 income, and support to optimize deductions for work expenses on Schedule C.

In addition to high-priority phone and email support, TaxSlayer Self-Employed offers a live chat feature and access to a tax expert specializing in self-employment taxes. However, there’s no guarantee that you can have a direct conversation with a Certified Public Accountant (CPA). 

Unlike competitors like H&R Block and TurboTax, TaxSlayer doesn’t offer a full-service version where a tax professional handles the filing of your taxes for you or allows in-person visits.

TaxSlayer Self-Employed stands out for its pricing, which is even more affordable than its competitors regarding personal tax-filing plans. While it may lack some of the extra features found in other platforms, TaxSlayer Self-Employed provides all the necessary tools to complete a small business tax return at a significantly lower cost. TaxSlayer Self-Employed is compatible with both iOS and Android devices.

With TaxSlayer, you can easily prepare your federal and state tax returns for under $100 ($52.95 for federal taxes and an additional $39.95 per state). There's no need to worry about paying extra fees for customer service or other essential benefits that simplify the tax filing process for busy freelancers and self-employed individuals.

Pros

• Less expensive than competing self-employed tax software alternatives
• Unlimited support available via phone, email, and chat
• Audit assistance provided by an IRS-enrolled agent for up to three years

Cons

• Lack of immediate access to tax professionals for guidance
• Absence of professional tax preparation services
• Tax professionals may not necessarily be CPAs, tax attorneys, or enrolled agents

>> File Your Taxes Online With TaxSlayer >>

H&R Block – Best for Variety of Support Options

H&R Block provides self-employed tax software for individuals with the utmost flexibility in tax preparation options. With prices starting at $85 (plus an additional $37 per state return), you can handle your own taxes while receiving assistance from a knowledgeable tax professional via phone or chat through H&R Block Self-Employed Online.

Additionally, H&R Block offers self-employed tax filers, as well as others, the opportunity to meet with a tax professional either in person or virtually and have that individual expertly prepare and file their tax return on their behalf.

The experience of using H&R Block's online tax preparation software is akin to engaging in a conversation with a skilled tax professional. The software employs an interview-style format that uses a series of questions and answers, which are then used behind the scenes to complete your tax return accurately. This software proves sufficient for many taxpayers to prepare and successfully submit their annual taxes.

However, some individuals prefer the security of having support available in case of difficulties. H&R Block boasts a vast network of over 9,000 physical locations across the United States.

Certain taxpayers might be reassured by the option to schedule an appointment and interact face-to-face with a knowledgeable professional. Others may find comfort in knowing that they can contact a tax expert via phone or messaging for any inquiries that arise while preparing their taxes.

Pros

• Comprehensive tax preparation services are offered, either virtually or in person
• Peace of mind with Worry-Free Audit Support (advice only) in case of an audit notice
• Intuitive interface that’s simple to navigate

Cons

• The pricing may fluctuate during the preparation of your return
• It might be pricier compared to certain alternative tax preparation software options
• Accessing Worry-Free Audit Support, which includes advice from an enrolled agent for representation, entails an extra fee

>> File Your Taxes Online With H&R Block >>

TaxAct – Best for Accuracy Guarantee

When you choose to use TaxAct's software for your tax return, you can experience an added sense of security with the remarkable guarantees provided by the company. Not only does TaxAct assure every user a maximum refund, but they also offer their customers an accuracy guarantee of $100,000.

If any error in the TaxAct software leads to a smaller refund or a higher tax liability compared to another tax preparation product using the same data, TaxAct will compensate for the difference in refund or tax bill (up to $100,000) and reimburse any relevant software fees paid.

Similarly, if you undergo an audit from the IRS or a state tax agency and incur penalties or interest due to a software-caused error, TaxAct will cover those costs (up to $100,000) and refund any software fees paid.

TaxAct is a cost-effective choice among various self-employed tax preparation software options. However, it comes at an additional cost if you require live assistance from tax experts for intricate self-employed tax returns.

Compared to its competitors, TaxAct may need more advanced features and functionalities, making it less user-friendly for preparing your tax return on this platform.

Pros

• Cheaper than other rivals for self-employed tax filers
• Guarantee of maximum refund and accuracy, up to $100,000
• Unlimited calls with tax experts available (upon upgrading to live tax expert assistance)

Cons

• Extra charges apply for live tax expert assistance
• Offers fewer features compared to competitors
• Audit support is provided by a third party and incurs an additional fee

>> File Your Taxes Online With TaxAct >>

Jackson Hewitt – Best User Interface

Jackson Hewitt offers online self-employed tax software, although it’s primarily known for its in-person tax preparation services at over 5,500 locations. Approximately 3,000 of these locations are conveniently located within Walmart stores.

With Jackson Hewitt's online tax service, you can rely on their extensive financial knowledge and comprehensive coverage of various tax topics. The price for this service is quite reasonable at only $25, which includes both federal and state returns.

Should you encounter any difficulties while completing your return on your own, the professionals at Jackson Hewitt are always available to assist you. We recommend Jackson Hewitt to individuals who have previously used their product and were satisfied with it or those who prefer to do business with a well-known brand.

Jackson Hewitt is an excellent choice for anyone seeking a straightforward tax preparation experience with the added benefit of backup help if necessary, all in pursuit of a larger refund. However, please note that their online help tools may not be sufficient for individuals requiring extensive guidance throughout the process.

Pros

• Affordable
• Price includes unlimited state returns
• Online filing is available, as well as options for local branches or participating Walmart locations

Cons

• Unable to import forms
• The online platform lacks user-friendliness compared to competitors
• Limited online tax filing support is available
• Inability to file online with a tax professional unlike other services

>> File Your Taxes Online With Jackson Hewitt >>

FreeTaxUSA – Best Free Tax Software

FreeTaxUSA is an excellent option for self-employed individuals filing taxes and anyone who wants to submit their federal tax return for free. However, if you're interested in additional services like Pro Support ($39.99), Audit Defense ($19.99), or upgrading to the Deluxe Edition ($7.99), be prepared to pay extra fees. Each state tax return incurs a cost of $14.99. Therefore, while the software is free, there are potential expenses if you upgrade.

Compared to its pricier competitors, FreeTaxUSA offers fewer features in its tax preparation software and provides minimal step-by-step guidance throughout preparing your tax return.

It’s most suitable for individuals with straightforward tax situations who feel comfortable handling their returns without external assistance. Unfortunately, there’s no option to have a professional prepare and file your taxes on your behalf if that's something you desire as an upgrade choice.

Pros

• Federal tax returns are free for all users
• Free filing for tax extensions
• Assured accuracy and maximum refund

Cons

• State tax returns incur an additional fee of $14.99 each
• Access to chat and priority customer support is exclusive to the Deluxe Edition upgrade
• No option for professional tax preparation

>> File Your Taxes Online With FreeTaxUSA >>

Cash App Taxes – Best for Freelancers

Cash App Taxes, previously known as Credit Karma Tax, stands out among the services we tested for its zero cost in providing comprehensive federal and state tax preparation and filing. It covers all major and most minor tax forms and schedules.

The website operates with impressive speed, boasting an excellent interface and user-friendly navigation system. Its mobile apps are also highly regarded. Cash App Taxes offers almost everything necessary to tackle even the most complex returns; however, it needs to improve in two areas: a robust onsite help system and access to professional help.

Cash App Taxes is the ideal choice if your goal is to file taxes without spending a penny. It particularly caters to individuals with only W-2 income and a few deductions and credits. 

While it has additional capabilities, such as handling self-employment reporting, it needs the step-by-step data entry process found in other tax apps when dealing with investment sales or similar areas. Thus making it less suitable for returns that require numerous forms and schedules.

Cash App Taxes supports various IRS forms and tax scenarios but only covers some. For instance, this service doesn't allow filing multiple states or including foreign-earned income.

Pros

• Cost-free
• Rapid page loading
• Compatible with primary IRS forms and schedules
• Intuitive user interface and navigation
• Superb mobile application functionality

Cons

• Support is superficial
• Inability to import interest or investment details
• Lacks certain forms and addresses specific situations
• Absence of professional tax assistance
• Necessitates a Cash App account for utilization

>> File Your Taxes Online With Cash App Taxes >>

Methodology

In our evaluation of self-employed tax software, we thoroughly compared various products based on specific criteria. We aimed to assess the software's suitability for personal tax return preparation, evaluate the terms and offers provided by each product, engage with software representatives to address any queries or concerns, compare their respective feature sets, and analyze how well they perform in typical tax scenarios.

In our evaluation process, we consider various factors such as the capabilities and performance of the tax preparation software, user satisfaction, website speed, quality of customer support, and pricing. We also analyze specific features, including the ability to import files or capture forms through photos, availability of IRS forms and schedules, contextual assistance for users, and compatibility across devices like desktops and mobile phones/tablets with syncing capabilities.

We assess the presence of professional tax assistance services, and guarantee maximum refund amounts and accuracy. We consider live support options and security measures in place to protect user information.

When evaluating the top self-employed tax software for freelancers, we consider the range of IRS forms and schedules catered specifically to freelance work incorporated in the software. We assess the level of assistance and guidance provided to freelance tax filers and any extra expenses self-employed individuals incur when filing their taxes.

>> Visit TurboTax >>

Best Tax Software for Self-Employed – Buyer’s Guide

What Is Tax Software for the Self-Employed?

Filing your taxes can be quite complex, especially if you're self-employed. As a self-employed individual, calculate your business income, track expenses, search for potential write-offs, and pay self-employment or business taxes based on your specific circumstances.

However, unlike larger businesses, you may need more financial resources to hire a Certified Public Accountant (CPA) who can handle the tax preparation and filing process.

If hiring a professional isn’t feasible within your budget constraints, using self-employed tax software could be an excellent alternative. Effective self-employed tax software designed for self-employed individuals should focus on helping you identify tax deductions that apply to freelancers, gig workers, independent contractors, and others in similar situations.

These software programs often come with useful tools such as basic profit and loss reporting features and the ability to import data from popular business accounting software like QuickBooks.

The optimal self-employed tax software for self-employed individuals should provide an intuitive and user-friendly interface, giving the impression of working alongside a knowledgeable tax professional while preparing your tax return.

Certain software programs excel at emulating an interview-style format tailored to self-employed taxpayers, where you respond to inquiries regarding your personal and business life, allowing the software to handle the intricate task of completing your tax returns in the background. This approach can alleviate the frustration of deciphering complex tax terminology and simplify the tax filing process.

Some self-employed tax software options offer additional functionalities, such as access to live tax experts for consultation during the preparation process. Given that self-employed individuals often have more intricate returns, having the ability to communicate with a qualified professional either via phone or online can be a significant advantage. Some programs allow you to have someone review your completed return before submission for added peace of mind.

Finding effective self-employed tax software as a self-employed individual involves seeking platforms that streamline and simplify the filing process and offer features like simulation interviews or access to live professionals for guidance and support along with proofreading options. These factors make your experience stress-free while ensuring accurate and efficient completion of your taxes.

Who Needs to Use Self-Employed Tax Software?

If you earn money through a small business or additional gig, you must disclose that income and fulfill your tax obligations. This entails completing the Schedule C form. Unfortunately, due to this additional requirement, you can no longer file your annual return for free using the online filing option.

If you have income from a business and wish to file your taxes electronically, you will likely need to invest in an online tax service. This applies to various self-employed individuals including:

• Independent contractors
• Gig workers (rideshare driver, delivery driver)
• Freelancers
• Consultants
• Small business owners
• Sole proprietors
• Entrepreneurs

If you’re determined to avoid additional costs, manually submitting all your documents via mail is still available. However, investing in self-employed tax software is highly beneficial for most self-employed individuals like us as it allows algorithms to take on the bulk of the work. The convenience and efficiency make it well worth the expense.

Why Do Freelancers Need to Use Tax Software?

Freelancers often need to have their taxes automatically deducted from their earnings, making determining the exact amount owed is a bit challenging. However, there are self-employed tax software options available that can assist freelancers in navigating their tax obligations.

Additionally, freelance workers may qualify for various deductions related to self-employment taxes. These deductions can include office supplies, travel costs, subscriptions specific to their industry, and more. In most cases, itemizing these deductions on your tax return is necessary. The right self-employed tax software can simplify this process and help streamline your overall filing experience.

If you have multiple sources of freelance income or complex self-employment taxes or simply feel unsure about filing your own taxes, hiring a Certified Public Accountant (CPA) might be a more cost-effective and beneficial option compared to using self-employed tax software.

>> Start Using TurboTax >>

What to Look for in the Best Self-Employed Tax Software

When finding top-notch software, such as self-employed tax software, our preferences vary. Some individuals prioritize user-friendliness, while others focus on the range of features an application offers.

To assist you in selecting the best self-employed tax software for self-employed individuals in 2024, here are six crucial factors to consider:

• Intuitive interface: For self-employed individuals, tax preparation software that’s easy to navigate is crucial due to the hectic nature of their lives. Complex software can be frustrating and might result in missed opportunities for savings or errors on tax returns, especially with ever-changing tax laws.

• Customer support: Access to reliable customer support is vital, especially for self-employed individuals with complex tax situations. Unlimited access to tax experts for advice can be a significant advantage. It's essential to compare the customer service options offered by different companies, including phone, chat, and screen share support. Consider the expertise of the tax professionals available and whether real-time assistance is provided.

• Cost: The price of self-employment tax preparation software, including any add-ons or upgrades, should be carefully considered. While finding low-cost or free software may be a priority for those on a tight budget, balancing cost with ease of use and customer service quality is important.

• Quarterly tax payment support: Self-employed individuals must make estimated quarterly tax payments throughout the year to avoid penalties. The best self-employed tax software should be equipped to handle complex tax situations like this, including providing support for the annualized method for calculating estimated tax liability.

• Guarantees: Choose a self-employed tax software company that stands behind its product with accuracy and maximum refund guarantees. Some companies offer better guarantees than others, providing added peace of mind for users.

• Additional features: Look for self-employed tax software providers that offer extra perks, such as free audit support, in-person meetings with tax experts, and the ability to import tax forms. While these features may not be decisive, they can be valuable considerations when choosing the best self-employed tax software solution.

>> File Your Taxes Online With TurboTax >>

How Your Business Can Benefit From Using Tax Software

There are numerous advantages that your small business can gain by utilizing self-employed tax software. Here are a handful of potential benefits:

Save Time

Prepare to be astonished by the speed at which you can finalize your tax return with tax preparation software. Every single program is meticulously crafted to offer a seamless and expedient experience, guiding you effortlessly through the entire process in a fraction of the time you might anticipate.

If you’re still mired in old-fashioned paper-based tax preparation, it's high time you leaped using specialized software. Once you do, there will be no looking back.

Maximize Deductions

If you're not a CPA or an experienced tax preparer, you may need to realize the available deductions. Especially if this is your first year filing a tax return for your business, there's a good chance you have yet to learn about the various tax deductions that can help reduce your tax liability.

Luckily, self-employed tax software can solve this problem for you. By asking simple questions at the start of the preparation process, it analyzes your answers and guides available deductions, credits, and adjustments. These are specifically designed to lower your overall tax liability.

Help Avoid Audits

The mere mention of the term "audit" can instill a sense of dread in even the most composed individuals. Although it’s impossible for any self-employed tax software to provide a guarantee against being audited, they can certainly minimize the likelihood by assisting you in preparing an error-free tax return.

Numerous software applications also include audit protection features, which will walk you through every step of the audit process should you receive communication from the IRS following your tax filing.

>> Start Using TurboTax >>

Best Self-Employed Tax Software – FAQs

Is Live Support Necessary?

The necessity of having access to live support personnel when preparing taxes depends on an individual's comfort level and the complexity of the task. While it may not always be required, having that support available is certainly beneficial. 

After all, nobody wants to face an audit. The business tax-filing solutions we assessed provide access to tax professionals who offer support and guarantees, including maximum refund options and audit assistance, among other benefits.

How Do I Know Which Product Is Right for My Business?

Finding the perfect product that caters to your unique requirements is essential. This could include features like expense tracking, deduction calculations, and report generation. When evaluating self-employed tax software options, we consider suitability for first-time business tax filers or expertise with tax preparation software and forms.

When Are Tax Payments Due for Self-Employed Filers in the 2024 Tax Year?

Self-employed individuals typically need to make quarterly estimated tax payments and file an annual return. The deadlines for the 2024 quarterly tax payments are April 15, June 17, and September 16 of that year. The final payment is due on January 15, 2025.

To calculate the amount of your quarterly estimated taxes, you can utilize Form 1040-ES called "Estimated Tax for Individuals." Remember that tax returns for the year 2023 must be submitted by Monday, April 15, in the following year (2024).

Can I Deduct My Self-Employment Taxes on My Tax Return?

Indeed, the Internal Revenue Service (IRS) allows you to claim a deduction corresponding to fifty percent of your self-employment taxes on your federal tax filing. When you’re self-employed, and your business declares a surplus (which means subtracting deductions from business income), you must pay self-employment taxes, including Social Security and Medicare contributions.

How Much Should I Put Away for Taxes if I Am Self-Employed?

In most cases, the sum you ought to save depends on your tax category and the deductions for which you may qualify. As a basic guideline, saving approximately 20% of your earnings from being self-employed might be prudent. You can use our calculator for self-employment taxes to approximate the exact amount.

>> Visit TurboTax >>

Bottom Line

Select the most suitable software for self-employed individuals to ensure the utmost accuracy and efficiency when filing your taxes. Before deciding, familiarize yourself with the functions and features of various online self-employed tax software options by conducting thorough research. This will enable you to complete your tax return promptly and with precision.

>> File Your Taxes Online With TurboTax >>

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