TurboTax offers a range of tax preparation options for self-employed individuals, including a free version. However, the free version has limited features and may not be suitable for all self-employed taxpayers.
Eligibility for TurboTax Free Edition
TurboTax Free Edition is available to taxpayers who meet the following criteria:
- Filing a Form 1040
- Claiming limited credits only (such as the Earned Income Tax Credit or Child Tax Credit)
- Not itemizing deductions
- Not reporting self-employment income
Limitations of TurboTax Free Edition
TurboTax Free Edition does not include features that are essential for self-employed taxpayers, such as:
- Schedule C (Form 1040) for self-employment income and expenses
- Schedule SE (Form 1040) for self-employment tax
- Form 1099-NEC for nonemployee compensation
- Business deductions and expenses
- Home office deduction
- Mileage tracking
Alternatives to TurboTax Free Edition
If you are self-employed and need to file a Schedule C or claim business deductions, you will need to use a paid version of TurboTax. TurboTax offers several paid versions that include features for self-employed taxpayers, including:
- TurboTax Self-Employed: This version includes all the features needed to file a Schedule C and claim business deductions.
- TurboTax Live Self-Employed: This version includes the same features as TurboTax Self-Employed, plus access to live tax experts who can answer your questions and provide guidance.
- TurboTax Live Full Service Self-Employed: This version includes all the features of TurboTax Live Self-Employed, plus a dedicated tax expert who will prepare and file your return for you.
Choosing the Right TurboTax Version
The best TurboTax version for you depends on your individual tax situation and needs. If you are self-employed and need to file a Schedule C or claim business deductions, you will need to use a paid version of TurboTax. TurboTax Self-Employed is a good option for self-employed taxpayers who are comfortable preparing their own taxes. TurboTax Live Self-Employed is a good option for self-employed taxpayers who want access to live tax experts. TurboTax Live Full Service Self-Employed is a good option for self-employed taxpayers who want a dedicated tax expert to prepare and file their return for them.
Additional Resources
Self Employment Income – 1099-NEC – TurboTax
FAQ
Is TurboTax free for self-employed?
Who qualifies for TurboTax free edition?
Can I use IRS free file if self-employed?
Can you use free TurboTax if you have a 1099?
Does TurboTax offer free tax filing?
TurboTax has a couple of options for free tax filing: TurboTax Free Edition and TurboTax Live Assisted Basic Offer. These offers are designed for people with simple returns only. Simple tax returns include W-2 income, limited interest and dividend income, standard deduction, Earned Income Tax Credit, Child Tax Credit, and Student Loan interest.
Does TurboTax pay for itself?
Pays for itself (TurboTax Premium, formerly Self-Employed): Estimates based on deductible business expenses calculated at the self-employment tax income rate (15.3%) for tax year 2022. Actual results will vary based on your tax situation.
How does TurboTax live work?
TurboTax Live Self-Employed tax experts are available via one-way-video with unlimited tax advice for your personal and business income and expenses, and can help you get industry-specific tax deductions and credits you’re eligible for. Working from the comfort of your own home can help you maximize your tax write-offs.
Can I use QuickBooks self-employed & TurboTax self-employed?
You can also use QuickBooks Self-Employed to track your income, expenses and mileage, and you can capture receipts year-round and then transfer your business information to your TurboTax Self-Employed tax return, making tax-time a breeze. Lisa has over 20 years of experience in tax preparation.