Freelancers pay self-employment tax, which is 15.3% of your profit. That’s significant.
Tax software walks you through deductions, calculates your self-employment tax, and prepares your return. You file electronically and the IRS processes it in days.
Here are the best tax software for freelancers.
Bottom Line: Use TurboTax Self-Employed if you want ease of use. Use TaxAct if you want to save $100. Hire a CPA if your situation is complex.
Why Tax Software (Not DIY)
Manually calculating self-employment tax, deductions, and filing is possible but error-prone. Missing a deduction costs you $200+. Misfiling costs you time and penalties.
Tax software is specifically built to ask the right questions and catch common mistakes.
Best Overall: TurboTax Self-Employed
TurboTax is the most popular tax software because it’s thorough and it hand-holds you through everything.
You answer questions: “Did you have a home office? What was your gross income? What business expenses did you have?” TurboTax asks follow-up questions, calculates your deductions, and fills in the forms.
TurboTax also hooks into your financial data (Wave, QuickBooks, etc.) and imports transactions.
Who it’s for: Freelancers who want to file taxes themselves and don’t mind paying for ease.
The downside: TurboTax Self-Employed costs $179.99 (for 2025). That’s expensive compared to competitors. Also, TurboTax is known for “dark patterns”—making premium versions seem required when they’re optional.
Pricing: $179.99 (Self-Employed).
Budget Option: TaxAct
TaxAct is similar to TurboTax but $100 cheaper ($79.99 for Self-Employed).
The experience is slightly less polished, but it gets the job done. TaxAct also offers phone support, which TurboTax doesn’t at this price point.
Who it’s for: Freelancers who want to save $100 and don’t mind a slightly less polished interface.
The downside: TaxAct is smaller. Less brand recognition. Customer support is slower than TurboTax.
Pricing: $79.99 (Self-Employed).
Premium: Hire a CPA
If your situation is complex (multiple income streams, business losses, rental properties, investments), hire a CPA ($1,000-3,000).
A CPA reviews your tax situation, identifies deductions you missed, and might save you more than their fee in taxes.
Who it’s for: Freelancers making $75k+ with complex financials.
Pricing: $1,000-3,000.
FAQ
Q: What’s self-employment tax? Social Security + Medicare tax for self-employed people. 15.3% total (you pay both the employer and employee portion). Salaried employees split this with their employer.
Q: What can I deduct? Software subscriptions, office equipment, internet, professional services, mileage, home office (if you have a dedicated space), and tools of your trade. Keep receipts.
Q: Do I pay quarterly taxes? If you owe $1,000+ in taxes, yes. You pay 25% of estimated taxes each quarter. The IRS will send you penalty notices if you don’t pay quarterly.
Q: How much should I set aside for taxes? Rule of thumb: save 25-30% of profit for taxes. If you made $50k profit, set aside $12,500-15,000 for taxes.
Conclusion
Use TurboTax Self-Employed unless you need to save money (TaxAct) or your situation is complex (hire a CPA).
TurboTax Self-Employed or TaxAct.
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