Is FreeTaxUSA good for freelancers?

Fast to file and easy to use, 

FreeTaxUSA helps you win at dues.

In the United States, tax season may be costly and difficult for independent contractors and freelancers. Selecting the appropriate tax filing software is crucial, especially if you are self-employed and need to report 1099 income or file complex forms like Schedule C. FreeTaxUSA is a frequently recommended tool.

In order to help you choose whether FreeTaxUSA is the best option for you, we'll examine how it functions for independent contractors, as well as its advantages and disadvantages, actual user experiences, pricing information, and answers to frequently asked questions.

What is FreeTaxUSA?

FreeTaxUSA is an online tax filing service that enables U.S. taxpayers, especially those with self-employed or freelance income, to prepare and electronically file their federal tax returns at no cost. You only have to pay if you select add-on support options or file state tax returns.

It supports the documents that independent contractors require, such as Schedule C (Profit or Loss from Business) and income reports 1099-NEC, 1099-MISC, or 1099-K.

Key Features That Freelancers Need

Here’s what makes FreeTaxUSA useful for freelancers:

✅ Free Federal Filing

You can file your federal tax return at no cost regardless of income type — including self-employment income.

✅ Schedule C Support

The software supports small-business and freelance income reporting forms, so you can report income and business expenses.

✅ Affordable State Filing

State returns are not free but come at a relatively low cost (around $15.99) — much cheaper than many competitors.

✅ Accuracy Guarantee

FreeTaxUSA promises to cover IRS penalties and interest fees if their calculations are wrong (but not if you enter wrong data).

✅ Prior Year Import

You can import your previous year’s tax info to speed up filing if it was prepared on FreeTaxUSA.

Optional Add-ons

Paid upgrades include priority support, audit assistance, and access to live tax experts (for an extra fee).

Pros of FreeTaxUSA for Freelancers

Here’s why many freelancers like FreeTaxUSA:

✔ Extremely Affordable

Federal filing is free, and state filing is far cheaper than comparable software.

✔ Supports Freelance & Contractor Income

It handles self-employment income and business reporting without forcing you into expensive higher tiers.

✔ Honest Pricing

Unlike some competitors that charge more as forms get complex, FreeTaxUSA’s federal filing cost stays the same.

✔ Positive User Feedback

Many users on community forums report successful filings year after year with no issues.

Cons and Limitations to Consider

No tool is perfect. Here are some drawbacks:

❌ No W-2 / 1099 Form Upload

You must manually enter most tax forms rather than uploading them directly.

❌ Basic Interface

The design and UI are functional but not as polished or guided as premium alternatives.

❌ Limited Support Without Upgrade

Free support is limited to email, live chat, and expert help costs extra.

❌ State Filing Costs

Although affordable, state filing isn’t free and can add up if you file in multiple states.

Real Freelancer Experience

What independent contractors report from internet conversations is as follows:

• Even with complicated Schedule C forms, many independent contractors have been using FreeTaxUSA for years without experiencing any significant problems.

• Compared to TurboTax, which frequently charges significantly higher costs for self-employment taxes, some consumers value FreeTaxUSA's reduced cost.

• Free plans may have slower support, but upgrading entitles you to priority assistance. 

Step-by-Step Freelance Filing Experience (Simplified)

1. Register on the FreeTaxUSA 2025 tax return website.

2. Respond to interview questions regarding your earnings, outlays, and deductions.

3. Enter 1099 and expense information, such as home office details, software subscriptions, and business tools.

4. Examine your return and verify the deductions.

5. E-file for free at the federal level and, if necessary, pay for state filing.

6. For your records, download or save copies. 

FAQs (Frequently Asked Questions)

1. Is FreeTaxUSA really free for independent contractors?

Yes, even for income from self-employment, filing federal taxes is always free. State filing is not free, but it is cheap.

Q2. Is it able to manage self-employment tax and Schedule C?

It does support Schedule C and related forms that are required for filing taxes as a freelancer.

Q3. Do new filers receive good support?

While phone or live support requires a minor-priced premium, basic email support is free.

Q4. Is it possible to import tax information from the previous year?

Yes, provided that FreeTaxUSA received the return from the previous year as well.

Q5. Is FreeTaxUSA IRS-approved and safe?

Yes, it is an e-file provider with conventional security precautions that has been approved by the IRS. 

Is FreeTaxUSA Good for Freelancers?

For independent contractors and freelancers, FreeTaxUSA is a reliable, affordable choice, particularly if you feel comfortable entering your own tax information and wish to avoid costly software fees. Although it lacks some sophisticated automation and comprehensive live help seen in premium programs, it provides the essential elements freelancers require, such as Schedule C support and a reasonable cost.

FreeTaxUSA is something to think about if cost and basic self-employment tax support are your main concerns.