Best Tax Software for Self-Employed and Freelancers in 2025

Choosing the right tax software as a self-employed person or freelancer isn’t the same decision as it is for a W-2 employee. You have Schedule C, self-employment tax, quarterly estimated payments, home office deductions, mileage logs, and possibly health insurance premiums to deal with. The software that’s best for a salaried employee often isn’t the best value for an independent contractor. Here’s a focused breakdown for 2025.

What Self-Employed Filers Actually Need

Before picking software, know what you need it to handle:

• Schedule C (net profit from self-employment)
• Self-employment tax calculation (Schedule SE)
• Business expense deductions (mileage, home office, phone, internet, equipment)
• Self-employed health insurance deduction (Schedule 1)
• SEP-IRA or Solo 401(k) contributions
• Quarterly estimated tax guidance
• QBI deduction (Form 8995) if eligible
• 1099-NEC and 1099-K income reporting

All four major platforms handle these — but the price difference for doing so is dramatic.

2025 Self-Employed Tax Software Comparison

The bottom line is striking: a self-employed freelancer filing in one state can pay $203–$273 on TurboTax or $15.99 on FreeTaxUSA for the same Schedule C and SE calculations. The accuracy guarantees are identical.

Best Pick: FreeTaxUSA for Most Self-Employed Filers

For self-employed individuals who are comfortable navigating their own return, FreeTaxUSA is the clear winner. Federal filing is completely free regardless of complexity — that means Schedule C, Schedule SE, the QBI deduction (Form 8995), self-employed health insurance deduction, home office, mileage — all at $0 federal. State is $15.99.

The interface is more self-directed than TurboTax, but if you’ve filed before and know your basic deduction categories, it’s entirely manageable. Over 82 million returns have been filed through FreeTaxUSA, with a 4.8/5 star rating from verified users.

Best Pick: H&R Block If You Want Guidance Included

If you want access to a live tax expert as part of your filing experience — someone you can ask whether that equipment purchase qualifies, or how to handle mixed-use vehicle expenses — H&R Block Self-Employed at $179 is the better value than TurboTax at $273. Unlimited live chat with a tax professional is included in H&R Block’s paid plans, not just as a paid add-on.

Best Pick: TurboTax If This Is Your First Year Self-Employed

If 2025 is your first year with significant self-employment income, TurboTax’s guided interview is genuinely helpful. It asks the right questions to make sure you haven’t missed any deductions — home office, vehicle, equipment, retirement contributions — and explains each section clearly. The premium you pay is essentially for peace of mind and deduction discovery when you’re new to Schedule C.

Key Deductions to Check for in Any Software

Before you file, make sure your tax software prompts you for all of the following self-employed deductions:

• Business mileage — 70 cents/mile in 2025. All four platforms handle this on Schedule C.
• Home office — Both simplified and actual methods. Confirm the software offers both so you can compare.
• Cell phone and internet — Enter your business-use percentage; the software calculates the deductible amount.
• Self-employed health insurance — This reduces your AGI on Schedule 1, not Schedule C. Make sure the software catches it.
• SEP-IRA contributions — Often missed by first-year filers. All platforms support it, but you may need to contribute before filing.
• QBI deduction (Form 8995) — Up to 20% of qualified business income. All four platforms calculate this automatically if you qualify.
• Half of self-employment tax — Automatically calculated from Schedule SE and flows to Schedule 1. Verify it appears in your return summary.

What About Quarterly Estimated Taxes?

All four platforms will estimate your quarterly tax payments after filing and generate Form 1040-ES vouchers or direct debit options. TurboTax and H&R Block offer the most proactive reminders and next-year planning tools. FreeTaxUSA generates the vouchers but is less proactive about year-round reminders.

Setting Aside Your Quarterly Payments

Whichever software estimates your payment, the money still has to come from somewhere on the due date. Many self-employed filers set aside a percentage of every deposit into a separate account as soon as it comes in, so the quarterly payment is already covered instead of a scramble in April, June, September, and January. Some freelancers use a fee-free banking app like Chime for this, since it doesn’t charge monthly fees and can post direct deposits early, making it easier to earmark tax money right when it lands. (Referral link — I may receive a reward if you open an account.)

Frequently Asked Questions

Can I use the free version of TurboTax if I have self-employment income?

No. TurboTax Free Edition does not support Schedule C. If you have any self-employment income from a 1099-NEC, you’ll be required to upgrade to at least TurboTax Premium ($79+) or Self-Employed ($139+). FreeTaxUSA is the only major platform where self-employed filers can truly file federal for free.

Does tax software help me find deductions I didn’t know about?

It depends on the platform. TurboTax and H&R Block ask the most thorough interview questions to surface potential deductions. FreeTaxUSA and TaxAct are more form-entry focused — they support every deduction but may not proactively ask about less common ones. Use our free Deduction Finder tool before opening any tax software to identify every deduction category that applies to your situation.

Should I use tax software or hire a CPA if I’m self-employed?

For straightforward self-employment income with standard deductions (home office, mileage, equipment), quality tax software is sufficient for most filers. If you have complex situations — multiple business entities, significant asset depreciation, S-Corp election, or international income — a CPA may save you more than their fee. Many self-employed people start with software in early years and hire a CPA when their situation grows in complexity.

Bottom Line

For most self-employed filers in 2025, FreeTaxUSA offers the best value — free federal filing with full Schedule C support. If you want a guided experience or included expert access, H&R Block Self-Employed at $179 beats TurboTax at up to $273 for the same result. Whatever platform you choose, make sure you’ve identified all your deductions before you start — the software won’t always ask.

See also: TurboTax vs H&R Block vs TaxAct vs FreeTaxUSA (2025): Full Comparison | 1099 Tax Deductions: Every Write-Off for Independent Contractors