For freelancers, managing your invoicing and payment is one of the biggest headaches. Since you work with multiple clients, it’s challenging to have everything in one
There’s a variety of ways to do taxes on your own, especially online.
With how fast and convenient online tax platforms are, there isn’t a better option nowadays unless you complete them by mail or in person. However, doing them by mail creates opportunities for making mistakes, whereas hiring someone to do your taxes for you can be even more expensive than you think.
Overall, freelancers need fast, reliable ways to streamline their taxes and save the greatest amount of money in the process. Of course, the IRS offers a free tax filing solution for users who meet certain criteria, but those who need a bit more assistance may need a service with more bells and whistles. That being said, here are the top 5 on-your-own tax platforms you can use to ease the pain of tax season:
To start, TurboTax offers simple tax returns for free with the TurboTax Free Edition.
Certain tax benefits are covered, too, with the free edition like the Earned Income Tax Credit and child tax credits for freelancers with kids. More complex tax situations—income from multiple states or a mix of W2s and W4s—will need to file with TurboTax’s additional products to receive the assistance they need. However, each tier of service you use comes with a variety of other advantages…
- Encryption protects your returns until IRS receives them
- TurboTax supports direct deposit for your tax returns
- Tax aid services and tutorials for new entrepreneurs
- A step-by-step income tax process that’s easy to follow and file
2. H&R Block
If you’re the head of a small business or a self-employed filer, H&R Block is the tax platform for you.
H&R Block efficiently wraps up both federal and state taxes (for an extra fee). Not to mention, you can receive additional assistance from tax professionals—a good idea if you’re worried about making a mistake when you file. Altogether, you have an easy-to-use platform that gives you accurate timeframes on your tax returns, while keeping the entire process affordable.
- When filing your taxes, you can follow simple instructions to make the process quick and painless
- IRS receives your tax filings through H&R Block while having full encryption and protection
- H&R Block stores previous documents so you can access them at anytime
- H&R grants a full refund if another tax platform offers a larger refund
Another great feature with TaxAct is that free support is offered in the form of gradual instructions throughout the tax filing process. Switching from platform to platform is also made simple by TaxAct, letting you import certain PDFs of forms from other tax services. For example, if you start a return with Turbo Tax but realize it’s going to be too costly, you can switch gears and upload your current work onto TaxAct’s services.
- IRS receives tax forms through TaxAct with updates along the way
- You get your refund amount and status as soon as you send your forms
- TaxAct stores up to 6 years of previous PDFs to use for certain events
- All support comes free with TaxAct including the mobile app
For any freelancers who treat their freelance work as a complete business, rather than just a hobby, Drake Software may be a great way to stay on top of your finances.
Drake Tax’s best attribute lies in customizable reporting, which gives every part of a business an accurate understanding to help prepare for taxes. On top of that, Drake Tax can also determine a business’s well-being and productivity from a financial standpoint from year to year. Think of it as having your own virtual tax assistant that also gives you valuable data for the coming years. Of course, the primary goal is to complete your taxes, with ease, but there are plenty of other benefits to enjoy.
- SecureFilePro, which allows clients to digitally complete paperwork and submit documents digitally on their end
- Includes many other digital tools that eliminate paper waste used in the tax filing process
- Estimates your final payback when filing taxes
- Built-in tools that catch tax filing mistakes and help prevent IRS rejection/audits
5. Thomson Reuters
Thomson Reuters’ ONESOURCE is the best option for enterprise-level taxes that are extremely complex.
First, speak with a sales representative about the cost of ONESOURCE on your business after purchasing all of the add-ons you may need. After that, you’re free to file your taxes in ONESOURCE’s incredibly organized platform. From corporate taxes to accounting, ONESOURCE has all the necessary tools you need to make your big-time tax filing easy. That said, a typical freelancer may find the platform a bit confusing, but for any entrepreneurs who want a foolproof tax system in place, Thomson Reuters won’t disappoint.
- Web and mobile-friendly, so it supports multiple users on multiple devices
- The IRS receives your tax forms on top of having full encryption and protection
- Along with state and federal taxes, ONESOURCE includes international tax compliance rules
- You only have to enter your data once since ONESOURCE saves your information and transfers it over from year to year
Keep Your Finances In Order With And.Co
Tax season is in full swing, so you’re going to want a reliable tax platform to aid you throughout the process.
By using this list, you can find the tax platform that’s best for you and your freelance needs. Plus, by using And.Co, you can keep your finances in order and easily access them when the time is right. In fact, And.Co offers a free quarterly tax calculator that you can use to estimate what your tax payouts will be each year.
More than anything, freelance success comes from being prepared—use And.Co to stay ahead of the curve!