Best Tax Software for Self-Employed and Freelancers in 2025

Freelancers and self-employed workers have more complex tax situations than W-2 employees. You’re responsible for self-employment tax (15.3% on net self-employment income), quarterly estimated payments, business deduction tracking, and potentially Schedule C, Schedule SE, home office deductions, and vehicle mileage logs. Using basic free tax software built for simple returns can lead to missed deductions or errors.

Here’s how the major options compare for self-employed filers in 2025.

TurboTax Self-Employed

Cost: $129 federal + $64/state

TurboTax is the most polished and user-friendly tax software available. Its Self-Employed edition handles Schedule C business income, freelance deductions, home office calculations, vehicle mileage, and quarterly estimated taxes with guided, question-based workflows that don’t require you to know tax terminology upfront.

Key features: live expense categorization import from bank accounts, a built-in deduction finder that surfaces commonly missed write-offs, and an option to upgrade to live CPA review if you have questions. The interface is the best in the category, if you’re new to self-employment taxes and want to be walked through the process, TurboTax is worth the premium.

The downside: it’s the most expensive option. $129 + state fees adds up, especially for a single year of relatively simple freelance income. But missing $500 in legitimate deductions to save $50 on software is a bad trade.

H&R Block Self-Employed

Cost: $115 federal + $44/state

H&R Block’s self-employed edition is nearly as capable as TurboTax at a slightly lower price point. It handles all Schedule C income, deductions, self-employment tax calculation, and estimated payment guidance. The interface is clean, if slightly less intuitive than TurboTax.

H&R Block’s unique advantage: if you want professional help, you can hand off your return to an H&R Block tax professional in person for a reasonable additional fee. For freelancers who have a straightforward return but want a professional to review it, this hybrid option is useful.

FreeTaxUSA (Best Value)

Cost: Free federal + $14.99/state

FreeTaxUSA is the best-kept secret in tax software. It handles Schedule C income, self-employment tax, all standard deductions, and business write-offs (the same core functionality as TurboTax) at almost zero cost. Federal filing is free. State returns cost $14.99. That’s all.

The interface is less modern than TurboTax or H&R Block and the guidance is more form-based than question-based. If you know what you’re doing, you understand Schedule C, self-employment tax, and the deductions you’re claiming, FreeTaxUSA is the obvious choice. If you’re new to self-employment taxes and want hand-holding through the process, the premium options are worth the price for year one.

QuickBooks Self-Employed

Cost: $15/month (year-round) or bundled with TurboTax for tax season

QuickBooks Self-Employed is designed for people who want year-round income and expense tracking alongside tax preparation. It automatically categorizes transactions from your bank accounts, tracks mileage via the mobile app, and calculates quarterly estimated taxes in real time. At tax time, it exports to TurboTax Self-Employed for filing.

It’s the best option if you want integrated bookkeeping and tax prep in one tool. The $15/month cost is reasonable if you’re actively using it year-round for expense tracking. If you’re only opening it during tax season, the math is less compelling than just using FreeTaxUSA or TurboTax directly.

Key Deductions Self-Employed Filers Often Miss

Regardless of which software you use, make sure you’re capturing:

• Home office deduction: If you have a dedicated space used regularly and exclusively for work, you can deduct a proportional share of your rent/mortgage, utilities, and internet. The simplified method allows $5 per square foot, up to 300 sq ft ($1,500 maximum).
• Health insurance premiums: Self-employed people can deduct 100% of health, dental, and vision insurance premiums paid for themselves and their family, one of the most valuable deductions available.
• Self-employment tax deduction: You can deduct 50% of your self-employment tax from your income (not just as a business deduction, but as an above-the-line income adjustment). Good tax software calculates this automatically.
• Retirement contributions: Contributions to a SEP-IRA (up to 25% of net self-employment income, max $69,000 in 2024) or Solo 401(k) are fully deductible and reduce your taxable self-employment income significantly.
• Business equipment and software: Computers, cameras, microphones, subscriptions, software, and tools used for business are deductible. Section 179 allows you to deduct the full cost of qualifying equipment in the year purchased rather than depreciating it over time.

The Bottom Line

New to self-employment taxes: TurboTax Self-Employed for the guidance, or H&R Block if the lower price matters.

Experienced and want to minimize cost: FreeTaxUSA handles everything you need at $14.99 for state.

Want year-round income tracking plus taxes: QuickBooks Self-Employed bundled with TurboTax.

Whatever you use, file on time. Self-employed late filing penalties add up fast, and quarterly estimated payments that aren’t made trigger underpayment penalties too. The software is the easier part, the habits around recordkeeping and quarterly payments are where self-employed filers most often run into problems.