Best Tax Software for Self-Employed

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The tax filing process for these individuals is a little different. You need to factor in business income and Social Security and Medicare taxes. And there are other special tax return requirements for these entrepreneurs.

Create courage. There is accounting software specifically designed for self-employed people.

What is tax software?

As the name suggests, this software helps people file their returns. Most like HR block offer e-filing, cloud storage, deduction and credit suggestions and some other features.

These filers need their own set of tax software options.

Why you should consider standalone accounting software

The right software tax forms for these small business owners are cost effective. And there are some other characteristics that self-employed people should pay attention to.

Here are five reasons to consider using the best tax software.

Make calculations easy

Accounting software makes for complicated calculations. You don’t need to add up the numbers with a spreadsheet and calculator.

Limit mistakes

Self-employed entrepreneurs can make mistakes when calculating deductions and credits manually.

Get the right tax deduction

These software programs usually provide a list of business related expenses. This is important when you need to know how to properly file self-employment taxes.

Get help filing tax returns

If your location requires it, state taxes must be filed separately from federal taxes. Self-employment tax may require a separate return. The rates and rules vary.

The right online tax software makes the difference.

Save valuable time

Self-employed filers are always against the clock. This type of software makes time tracking easier as it is faster than manual data entry.

Plus, things like expense tracking can be carried over from one year to the next.

Best Tax Software for Self-Employed

There is a lot of tax preparation software to browse. Below is a list for the self-employed and independent contractors. These work with different types of self-employed.

1. Quickbooks Self-Employed

These industry leaders offer accounting functions for the self-employed, certain contractors and freelancers.

Quickbooks online are tax software providers that separate personal and business expenses. Tax documents can be transferred to TurboTax.

This online tax software also tracks mileage. Perfect for independent filers.

Add a tax expert (accountant) to online Quickbooks for free.

Pricing: There are several standalone package plans to choose from. The first is $7:50 with a monthly subscription. It includes itemized deductions.

2. Turbotax Self-Employed

A self-employed small business owner must follow a specific set of tax laws.

This tax filing software is good for discovering industry-specific deductions on your tax return.

This one comes with some of the same features as the others and one specific to tax rules.

Pricing: You can start for free when you’re ready to file your federal self-employment tax return. Self-employed small businesses pay $119 for a federal return.

3. H&R block

Regardless of your tax situation, you can start here with five free E-files and instructions. The small business tax preparation you can get with HR Block includes accounts payable.

If you have questions about capital gains, for example, there is chat access to a tax professional.

Some contractors and freelancers benefit a lot from these packages. Uber drivers can also import their tax information.

Pricing: The standalone version at HR Block is a little more expensive starting at $180. But you can meet a tax professional virtually or in person and get support year-round.

4. FreshBooks

Keep accurate credit card statements and track expenses with this industry-leading software. Freelancers should also pay attention, as New Book offers accurate billing options and several payment choices.

Keep your financials organized and quarterly taxes on track by sending reports to your accountant.

Pricing: Very small businesses that only have basic needs can start with the light package. It only costs $7:60 per month.


This accounting software for entrepreneurs offers customized pricing. It covers tax credits and investment income, financial reports and freelance income plus more.

Pricing: The price here is advertised at 32% less than TurboTax. It is listed at $79.95 with the state version extra.


This company was founded in 2001 by a CPA and some professional software developers. E-file and includes rental income during tax season.

Gig workers pay attention. The car costs are covered. That’s good news if you’re looking for uber tax information for drivers.

View the types of supported income.

This software product also offers unlimited modified returns when you use their Deluxe Edition. This is an important option if you need to change any of your deductions. You may need to correct an omission or error in your income or correct a credit.

Pricing: Federal returns are completely free. State tax return costs $14.99.


This is free software when you fill in files. Unlimited phone and email support. There is an app tax cash feature that is also free. Import data from previous years or even a W2. Gives the big players like HR Block good competition.

The mobile app is striking. It enables customers to share information with the sole proprietor or self-employed person in a safe and secure manner. Another interesting feature is the ability to chat in real time from within the app.

Prices: Students pay nothing. Self-employed entrepreneurs pay $47.95.

8.eSmart Tax

Simply file online and you’ll get maximum deductions and other tax benefits. Affordable Healthcare options. Please note, there is no mobile app available. This software guides you through 1099-NEC earnings and has other features.

This is good software if you don’t need to archive or collect information on the go.

Prices: Federal taxes are $64.95. State tax return costs $36.95.

9. Jackson Hewitt

There is an option with this service to let professionals take care of your taxes. It takes excellent error checking to keep track of income and expenses accurate. The online version covers a variety of tax law topics.

Looking for an in-depth, professional standard? This is great for those self-employed entrepreneurs who want excellent results.

Pricing: They offer one online fee that covers both state and federal tax returns. The $25 flat fee remains the same for three years.

10.Cash App Taxes

Small businesses should take a closer look at this. Most IRS forms are supported. The pluses are fast page loading times. Good mobile apps.

But there are a few drawbacks here. Such as the fact that there is no expert tax advice available.

There’s even a tab you can use to estimate your refund. View the maximum refund guarantee.

The best advantage of this product is that you get what you pay for. Look under prices.

Price: This one is free.

What to Look for in Tax Software

Finding the right small business tax software is easier with a few tips. Here are a few things to look for.

A price that includes state tax returns

Make sure any place you consider is clear about whether they have state returns. Some software charges for this right away. For others it is an additional cost. You must consider both state and federal taxes. So it pays to be clear about what costs extra.

Software that organizes deductions

The tax deduction find feature is useful. It’s important to get these right so you don’t have to submit corrections. Moreover, entrepreneurs do not want to miss out on anything that they are entitled to.

What are the guarantees?

Does the company guarantee the accuracy of the products? Are they standing next to you when you are being checked? Make sure both features are part of the package.

A personal touch

Look for personal and tailor-made explanations of any calculations. General clarifications are not enough.

A good mobile app

Make sure it has a Schedule C option geared towards sole proprietorships. And your customers can send you data and relevant information.

Can you do your own taxes as a self-employed person?

As a sole proprietor, you must ensure that you report business income and expenses on Schedule C. Remember that self-employment taxes include Medicare and Social Security.

What is the best accounting software for the self-employed?

FreshBooks gets the nod as the best accounting software for self-employed entrepreneurs. Best in class is the customer service. Save nearly 9 billing hours per month. Get quick estimates and proposals based on your inventory numbers.

What is the best accounting software for calculating independent business expenses?

According to their website, Quickbooks’ online tax software saves self-employed clients nearly $4,000 a year in tax savings.

This software separates personal and business transactions. It will also download transactions from your bank accounts.

QuickBooks Self Employed compares transactions to lines on your Schedule C. It even calculates the different categories such as advertising and professional services/legal fees and meals to name a few.

The car and truck category categorizes different expenses when you use a vehicle for your self-employed business. It tracks things like vehicle repairs and insurance, as well as loans and loan interest. HR Block is a close second if you are looking for a quick tax refund.

Image: Depositphotos

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