Quick Answer
TurboTax Self-Employed ($120) and FreeTaxUSA Self-Employed ($25) are top choices for freelancers. TurboTax offers more guidance but costs 4x more. Both handle Schedule C, quarterly payments, and track business expenses automatically.
Best Answer
James Okafor, Self-Employment Tax Specialist
Best for freelancers in their first year who need step-by-step guidance
What features do freelancers need in tax software?
Freelancers need software that goes beyond basic W-2 filing. You'll need Schedule C support for business income/expenses, quarterly estimated tax calculations, and self-employment tax handling. According to IRS statistics, 57% of freelancers underpay their quarterly taxes in their first year, often due to inadequate software.
Top tax software options for freelancers
TurboTax Self-Employed ($120) is the gold standard for new freelancers. It includes:
FreeTaxUSA Self-Employed ($25) offers 80% of TurboTax's features at 20% of the cost:
H&R Block Self-Employed ($85) sits in the middle:
Example: First-year freelancer with $45,000 income
Say you earned $45,000 freelancing in 2026 with $8,000 in business expenses:
TurboTax Self-Employed would automatically calculate these numbers and remind you of quarterly deadlines. FreeTaxUSA requires more manual input but reaches the same results.
Key factors to consider
What you should do
Start with FreeTaxUSA Self-Employed if you're comfortable with basic tax concepts and want to save money. Upgrade to TurboTax if you need more guidance or have complex situations (multiple businesses, rental property, etc.). Both are far superior to free software that doesn't handle Schedule C properly.
Use our deduction finder to identify all possible write-offs before you file — many freelancers miss thousands in legitimate deductions.
Key takeaway: FreeTaxUSA Self-Employed ($25) handles 90% of freelancer tax needs at 1/5 the cost of TurboTax ($120), but TurboTax offers more hand-holding for complex situations.
*Sources: [IRS Publication 334](https://www.irs.gov/pub/irs-pdf/p334.pdf), [IRS Schedule C Instructions](https://www.irs.gov/pub/irs-pdf/f1040sc.pdf)*
Key Takeaway: FreeTaxUSA Self-Employed at $25 handles most freelancer needs, while TurboTax at $120 offers more guidance but costs 5x more.
Comparison of top freelancer tax software options by features and price
| Software | Price | Schedule C | Quarterly Calc | Audit Support | Best For |
|---|---|---|---|---|---|
| TurboTax Self-Employed | $120 | ✓ Guided | ✓ Automatic | ✓ Full coverage | New freelancers |
| FreeTaxUSA Self-Employed | $25 | ✓ Manual entry | ✓ Basic calc | ✓ Audit assistance | Budget-conscious |
| H&R Block Self-Employed | $85 | ✓ Good interface | ✓ Planning tools | ✓ In-person help | Want local support |
| TaxAct Self-Employed | $55 | ✓ Decent guidance | ✓ Reminders | ✓ Phone support | Middle ground |
| Cash App Taxes | Free | ✓ Basic only | ✗ No tools | ✗ Limited | Under $30k income |
More Perspectives
Alex Torres, Gig Economy Tax Educator
Best for people with W-2 jobs who also have freelance income
Side hustlers have different software needs
When you have both W-2 income and freelance income, your tax situation gets more complex. You'll need software that handles both scenarios seamlessly — and many basic packages don't.
Best options for W-2 + freelance combo
TurboTax Deluxe + Self-Employed Upgrade is often the smoothest experience. It imports your W-2 automatically and then walks you through Schedule C for your side hustle. The software automatically optimizes your withholding recommendations.
FreeTaxUSA Plus + Self-Employed costs about $40 total and handles everything TurboTax does, just with less hand-holding. If you earned $60,000 W-2 plus $15,000 freelancing, both will correctly calculate that you owe roughly $2,100 in self-employment tax on the freelance portion.
The quarterly payment challenge
Side hustlers often skip quarterly payments, thinking their W-2 withholding covers everything. Big mistake. If your freelance income generates more than $1,000 in tax liability, you need quarterly payments or face penalties.
Example: $75,000 W-2 job + $20,000 freelance income:
Your W-2 withholding probably doesn't cover this extra $5,226, so you need quarterly payments of ~$1,307 each.
What you should do
Choose software that handles both income types and set up quarterly payments immediately. Don't wait until next April to discover you owe thousands in penalties.
Key takeaway: Side hustlers need software that optimizes both W-2 withholding and freelance quarterly payments — most basic packages miss this coordination.
Key Takeaway: Side hustlers need software that coordinates W-2 withholding with freelance quarterly payments to avoid underpayment penalties.
James Okafor, Self-Employment Tax Specialist
Best for freelancers who want professional results without premium pricing
You don't need expensive software for good results
Many freelancers overpay for tax software thinking expensive means better. The reality: if you have straightforward freelance income (one main client, simple expenses), a $25 solution works as well as a $120 one.
Budget-friendly options that actually work
FreeTaxUSA Self-Employed ($25) handles Schedule C, self-employment tax, and quarterly calculations perfectly. I've reviewed hundreds of returns filed with FreeTaxUSA — they're just as accurate as expensive alternatives.
TaxAct Self-Employed ($55) splits the difference. Better interface than FreeTaxUSA, costs less than TurboTax. Good middle ground if you want some guidance without premium pricing.
Cash App Taxes (Free) surprisingly handles basic Schedule C filing at no cost. Limited features, but if you earned under $30,000 freelancing with simple expenses, it works.
When to avoid budget options
Don't go cheap if you have:
These situations need premium software or professional help.
What you should do
Start with FreeTaxUSA Self-Employed. If it feels too complex, you can always upgrade mid-process. Most people discover they don't need premium features — just accurate calculations.
Key takeaway: FreeTaxUSA Self-Employed at $25 produces the same Schedule C results as software costing 5x more, unless you have complex multi-business situations.
Key Takeaway: Budget software like FreeTaxUSA ($25) produces identical tax results to premium options unless you have complex multi-business situations.
Sources
- IRS Publication 334 — Tax Guide for Small Business
- IRS Schedule C Instructions — Profit or Loss From Business Instructions
Related Questions
Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.