If you’re a freelancer or independent contractor, you should choose an online tax software designed for self-employed people. Online tax software for self-employed people can ensure that you take advantage of various tax breaks that can reduce your tax liability. In addition, since the software is updated on a continuous basis, you’ll have the latest tax law changes at your fingertips.
Choosing a self-employed version of online tax software can also provide extra guidance, which is especially important if it is your first time filing your tax return. But you should be careful before choosing to prepare your own self-employed tax return. If your tax return ends up being a bit more complicated than you expected, it may be a good idea to hire a tax professional, such as a certified public accountant (CPA), to prepare your taxes.
The Importance of Using Tax Software
With the ever-changing tax laws, it is increasingly difficult to prepare a tax return by hand. Unless your tax filing includes a simple Form W-2 with only a few deductions, it is important to use tax software. When choosing a tax software package, you’ll want one that is easy to use and budget-friendly, allows for filing of any state tax returns you’re required to file and has great customer service.
If you’re seeking a no-cost way to file, you can take advantage of the IRS Free File program. The program allows taxpayers to file their federal tax returns for free, answering guided interview-style questions; in some cases, state tax filings are free as well. To qualify, your adjusted gross income must be $73,000 or less.
But even if you don’t qualify for the IRS Free File program, you can choose to file at no cost using the IRS Free File Fillable forms. They’re different from the Free File program. You’re required to do more work by completing the tax forms yourself without guidance, and there’s no option for state tax preparation and filing.