Best Tax Software for Freelancers & Side Hustles (2026 Ranked)

Filing taxes as an employee is free. Filing as a freelancer (Schedule C) usually costs $100+. Software companies love to hide these fees until the very last screen. We tested the top platforms to find which ones actually handle self-employment income without draining your wallet.

BMT Tax Research Team BMT Tax Research Team · 📅 Jan 2026 · ⏱️ 5 min read · TAX TIPS › TOOLS
Winner
TurboTax
Best ExperiencePremium
Value
FreeTaxUSA
$0 Fed FilingBudget
Form
Sch C
Critical Feat.Check

1. The “Real Cost” Comparison

Don’t believe the “Start for Free” banners. If you have freelance income (1099-NEC), you are forced to upgrade to “Premium” or “Self-Employed” tiers. Here is the real price tag.

Software Sch C Filing Cost* State Filing Best For
TurboTax ~$129 ~$64 Beginners
H&R Block ~$85 ~$45 Hybrid
FreeTaxUSA $0 $15 Value
Cash App Tax $0 $0 Simple

*Prices fluctuate

Tax software pricing changes dynamically during the season. Prices usually go up in April. File early (Feb/Mar) to lock in lower rates.
Total Cost to File (Fed + State)
TurboTax ~$193
Premium Experience.
H&R Block ~$130
Solid middle ground.
FreeTaxUSA $15
Unbeatable price.

2. Deep Dive: Which One Fits You?

🏆 TurboTax Self-Employed (The “Mercedes”)
Pros: The interface is beautiful. It interviews you like a human (“Did you buy a laptop?”). It scans for industry-specific deductions (e.g., “Uber drivers can deduct car washes”).
Cons: Very expensive. They charge extra for everything.
Verdict: If you are terrified of taxes or have complex income, pay the premium for peace of mind.
💎 FreeTaxUSA (The “Honda Civic”)
Pros: It supports Schedule C, Rental Income (Sch E), and Investments (Sch D) for free on Federal returns. No hidden upgrade walls.
Cons: The interface is functional but “ugly.” No fancy deduction scanner. You need to know what you are doing slightly more.
Verdict: If you know your expenses and just want to file, this is the smartest choice.
🛠️ QuickBooks Self-Employed (The “Mechanic”)
Pros: It’s not just for tax day. It tracks your mileage and expenses all year round. You can export data directly to TurboTax.
Cons: Monthly subscription fee ($15-$35/mo).
Verdict: Essential for serious freelancers who need year-round bookkeeping.

3. Watch Out for the “Upsell Trap”

Why do free versions stop working for you? Most software forces an upgrade the moment you trigger a 1099 form.

The “1099 Paywall” Visualized

W-2 Job Income ✅ Free Edition
Bank Interest ✅ Free Edition
Freelance (1099) ⛔ Upgrade Required (+$100)

*FreeTaxUSA is the rare exception that does not have this paywall.

4. Frequently Asked Questions

Is tax prep fees deductible?
Partially Yes. If you pay for the “Business” version (Schedule C), you can generally deduct that portion as a business expense. However, the personal portion is generally not deductible on Federal returns.
What if I use an Accountant (CPA)?
Expect to pay $300-$500+. A human CPA is much more expensive than software. Only hire a CPA if your taxes are messy (e.g., mixed personal/biz assets, audit risks, complex inventory).