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Self-employed individuals often have unique tax requirements that can be overwhelming to manage during tax season. Fortunately, tax software can help you understand how to file self-employment taxes and make the process easier by streamlining the filing process and providing guidance on available deductions and src099 rules. In this article, you’ll discover several tax software options that stand out as the best for self-employed people, offering a combination of user-friendliness, affordability, and robust features.
What is tax software?Tax software is a digital program that simplifies the complex process of filing taxes. It helps to calculate, prepare and submit your taxes accurately, whilst also ensuring you take advantage of all deductions you’re eligible for. It eliminates the need to hire an accountant or invest in expensive tools. The best tax software for small business is designed to make tax preparation easier and more efficient.
Why should you consider self-employed accounting software?Self-employed accounting software offers many advantages for business owners in 2023. Here are five reasons why you should use tax software:
Streamlines tax filing: Self-employed accounting software automates the tax filing process, reducing errors and saving time so you can focus more on your fun self-employed jobs.Organizes income and expenses: The software categorizes income and expenses, helping you track cash flow and identify tax deductions.Offers real-time financial insights: Self-employed accounting software provides real-time financial insights, enabling you to make informed decisions.Provides data security: The software securely stores your financial data, protecting you from potential data breaches or losses.Affordable and easy to use: Most self-employed accounting software options are affordable and user-friendly, making them accessible to businesses of all sizes.
Best Self-Employed Tax Software ProgramsTo help you choose the best self-employed tax software program for your business, we’ve compiled a list of some of the top options available. These programs stand out for their user-friendly interfaces, comprehensive features, and affordability.
src. Turbotax Self EmployedTurboTax Self-Employed is a tax solution aimed at independent contractors and freelancers in the United States. With a rating of 4.6/5 from 9,463 reviews, TurboTax Self-Employed offers a range of features, including industry-specific deductions, searching for 500 tax deductions and credits, personalized audit risk assessment, and self-employment tax guidance. The software is also available in Spanish.
TurboTax Self-Employed offers step-by-step guidance, allows users to snap and auto-fill their src099-NEC and src099-K forms, and syncs with financial accounts to find and categorize work-related deductions. The software costs $srcsrc9 for a Federal tax return and $59 for State taxes.
2. Quickbooks Self EmployedQuickBooks Self-Employed provides small businesses and independent contractors with basic bookkeeping tools to help them get ahead. Features include tracking mileage automatically via GPS, importing expenses from bank accounts, organizing receipts through photo categorization, running built-in reports to analyze business performance, and estimating and filing taxes.
The software offers three flexible plans with varying levels of features, including a bundle with Intuit TurboTax Self-Employed that enables direct payment of quarterly estimated taxes and access to real CPAs for advice and help with filing. QuickBooks also automatically syncs all bank and credit card transactions for seamless tracking of income and expenses.
3. H&R Block Self-Employed OnlineH&R Block offers an online tax filing service, specifically designed for self-employed individuals and small business owners. The service includes features such as personalized guidance, technical support, and expense tracking, as well as easy importing of Uber income and support for reporting cryptocurrency sales.
H&R Block offers several guarantees, including a Max Refund Guarantee and an Accuracy Guarantee. The service also provides access to live phone or chat tech support and the ability to digitally organize tax documents for up to six years. It costs $srcsrc5
plus $45 per state filed.
4. TaxSlayer Self-EmployedTaxSlayer offers a tax preparation service for self-employed individuals, including small business owners, contractors, and those with both src099 and W-2 income. The service costs $59.95 plus state fees and provides support for entering business income and expenses, maximizing deductions, and accessing tax tips and resources.
Users also have access to a tax professional with self-employed expertise for more complex tax questions and audit defense for three years. Tax payment reminders are also available to avoid unnecessary fees. TaxSlayer has been in operation for over 50 years and has a 4.4 out of 5 rating on Trustpilot.
5. FreeTaxUSAFreeTaxUSA is a tax preparation software that allows small business owners to prepare and e-file their federal and state taxes. Federal taxes are free while state tax returns are $src4.99. The software supports various tax forms and deductions, including self-employed income, rental income, health insurance costs, vehicle expenses, and more.
The company earns revenue from optional services and state tax returns. The platform also provides customer support and guarantees that users won’t pay extra to file if they are self-employed, own a home, or have investments. FreeTaxUSA has filed over 50 million tax returns securely with the IRS.
6. TaxAct Self-EmployedTaxAct Self-Employed offers tax preparation services for freelancers, independent contractors, small business owners, and sole proprietors. They help users take advantage of all tax deductions they’re eligible for and offer year-round support for business and quarterly taxes.
TaxAct can import data from TurboTax and H&R Block returns, and their products are easy to use, accurate, and secure. TaxAct Alerts ensures that users avoid errors, omissions, and missed tax-saving opportunities. TaxAct also offers a Maximum Refund Guarantee, Xpert Assist, and a $src00K Accuracy Guarantee. Users can access and print prior returns for up to seven years after filing.
7. eSmart Tax PremiumeSmart Tax is a tax preparation service that offers its Premium package for $85.95, best suited for small business owners or those with less common forms of income. The package covers self-employment income and related deductions, rental or farming income, and more.
eSmart Tax guarantees fast and accurate calculations and promises to reimburse any penalties or interest resulting from miscalculations. It is backed by Liberty Tax and provides features such as audit protection and tax break checks. eSmart Tax guarantees src00% accuracy and promises to provide the biggest tax refund possible or reimburse the tax preparation fees.
8. E-file.com Premium PlusE-file.com offers online tax preparation software that helps people file their income taxes fast, easily, and accurately. Users can signup for a free account, enter their tax info and income figures, and any deductions, and the software will calculate and prepare their returns.
E-file.com provides full-featured online tax software at a significant discount to other programs. The Premium Plus E-file is $37.49 plus $22.49 for State with a coupon code.
9. FreshBooksFreshBooks is a user-friendly and top accounting software for self-employed individuals. It makes accounting, invoicing, time tracking, and reporting effortless. The software allows users to automate tasks such as organizing expenses, tracking time, and following up with customers.
FreshBooks offers online payment solutions that get users paid srcsrc days faster, send automated late payment reminders, and allow for the creation of recurring profiles. With FreshBooks, users can easily organize business expenses and track billable hours.
src0. Jackson Hewitt OnlineJackson Hewitt Online offers online tax filing for a flat fee of $25 with a guarantee of the biggest refund. The service offers step-by-step instructions, live chat support, and automatic error checking. It also provides security features, including two-step identity verification, encrypted data transmission, and alerts for account activity.
Jackson Hewitt also provides in-person tax filing services with flexible hours and locations, and a range of guarantees, including a Maximum Refund Guarantee and a Lifetime Accuracy Guarantee.
How to Choose the Best Tax Software for the Self EmployedChoosing the best tax software for self-employed individuals can be overwhelming. To make it easier, here are four factors to consider when making your decision:
Available Tax FormsNot all tax software programs support every tax form, so it’s important to check if the program you’re considering supports the forms you need.
CostCost is an essential factor when selecting tax software for self-employed individuals. Some programs offer free versions with limited features, while others charge a premium for their services.
User-FriendlinessLook for a tax software program that is intuitive and user-friendly. The software should offer clear guidance and instructions throughout the tax filing process.
Customer SupportIf you’re new to tax filing or require assistance, look for a program that provides adequate customer support. Some programs offer phone support, chat support, or email support, so choose one that fits your needs.
Can a self-employed person file their own taxes?Yes, self-employed individuals can file their own taxes using tax software or paper forms. However, it’s important to have a good understanding of tax laws and regulations to ensure compliance and minimize errors.
Can a self-employed person file taxes for free?Yes, self-employed individuals may be eligible to file their taxes for free using certain tax software programs like FreeTaxUSA or by utilizing free filing options offered by the IRS. Eligibility requirements vary by program.
Is it better to use a tax preparer or tax software if you’re self-employed?The decision to use a tax preparer or software depends on your personal preference, budget, and tax situation. Tax software is often more affordable and user-friendly, while a tax preparer can provide personalized guidance and advice.
What is the best accounting software for self-employed taxpayers?The best accounting software for self-employed taxpayers depends on your specific needs and budget. Popular options include QuickBooks Self-Employed, FreshBooks, and TaxSlayer Self-Employed.
Which tax software is best for calculating self-employed business expenses?Many tax software programs offer features for calculating and deducting self-employed business expenses. Some popular options include TurboTax Self-Employed, H&R Block Self-Employed, and TaxAct Self-Employed.
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