Tax Software for the Self-Employed: What You Need and What It Costs
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Short answer: if you're self-employed, your tax software has to handle Schedule C (business income and expenses) and Schedule SE (self-employment tax). Most mainstream online tax software does, but only in a self-employed tier, and pricing ranges from free to well over $100 for the federal return alone. Choose based on how complex your business is and how much hand-holding you want, not on the brand.
What self-employed tax software must handle
- Schedule C: income and expenses for each sole proprietorship or single-member LLC.
- Schedule SE: the self-employment tax for Social Security and Medicare.
- 1099 income: entering, or ideally importing, 1099-NEC and 1099-K forms.
- Home office deduction: the simplified method or Form 8829.
- Vehicle expenses: standard mileage rate vs. actual expenses.
- Qualified business income (QBI) deduction for eligible pass-through income.
- Estimated taxes: vouchers or a plan for next year's quarterly payments.
- Your state return, often an extra fee.
Options compared (October 2026)
Prices change every tax season and often rise closer to the filing deadline. Figures below were taken from each provider's own site on October 27, 2026. Where a provider's page could not be verified, we say so rather than guess.
| Option | Federal | State | Best for |
|---|---|---|---|
| FreeTaxUSA | $0, including self-employed forms | Fee per state (under $20 as listed) | Cost-conscious filers comfortable answering the questions themselves. A low-cost Deluxe upgrade adds priority and live-chat support. |
| TurboTax Do It Yourself Premium | $139 as listed ("file by 3/31 to save") | Additional fee | Filers who want guided, industry-specific deduction prompts, 1099-NEC/1099-K import, and prior-year Schedule C import. Expert Assist and Full Service tiers cost more. |
| H&R Block Self-Employed (online) | Check current pricing on hrblock.com | Filers who may want the option of in-person help at a local office. | |
| TaxAct Self Employed | Check current pricing on taxact.com | Filers who want a mid-priced guided product. | |
| IRS Free File | $0 if you meet the income limit | Varies by partner | Lower-income self-employed filers. Eligibility and participating providers are listed on irs.gov. |
How to choose
- Simple side business, organized records: a free or low-cost option like FreeTaxUSA usually handles Schedule C and SE fine. Your year-end totals from a bookkeeping template are most of what you'll enter.
- Several 1099s, vehicle and home office, first year self-employed: a guided product's interview and import features can save time and catch deductions you'd miss.
- Multiple businesses, employees, inventory, S corp, or prior-year issues: consider a CPA or enrolled agent, or at least a software tier with expert review. S corps and partnerships file separate business returns that consumer self-employed tiers don't cover.
Before you open the software
- Your total business income, including 1099-NEC and 1099-K forms (and income that didn't get a 1099).
- Expenses by category. The bookkeeping template maps them to Schedule C lines.
- Business mileage log and vehicle details.
- Home office square footage and total home square footage, plus home expenses if you use the regular method.
- Estimated tax payments you made during the year, with dates.
- Health insurance premiums and retirement contributions, which have their own self-employed deductions.
Frequently asked questions
Can I file self-employed taxes for free?
Yes, in many cases. FreeTaxUSA lists self-employed federal forms on its free federal tier, and IRS Free File partners offer free filing to taxpayers under the income limit.
Do I need the self-employed version if I only have a small side gig?
If you received 1099 income or had business expenses, you'll need Schedule C, which most providers put in their self-employed tier. Some free products include it.
Does tax software calculate quarterly estimated taxes?
Most self-employed tiers can generate next year's estimated payment vouchers based on this year's return. Treat them as a starting point and adjust if your income changes.
Prices are as published by each provider on October 27, 2026, and change each tax season. This guide is general information, not tax advice. Residential Business has no affiliate relationship with the providers listed.
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