Have you ever wished that you file your self-employed taxes online without the hassle of dealing with a complicated interface? Now you can with a great new option from H&R Block Tax Software!
H&R Block recently rolled out a new Self-Employed Online Tax Filing option for small business owners and the self-employed.
This is in addition to their Premium Tax Filing option that’s exclusively for freelancers and contractors.
So now you have more options than ever to file your small business taxes online!
What is H&R Block Tax Software?
There are many different kinds of of H&R Block tax software and online tax filing options. They offer everything from at home desktop software, to simplified online filing that’s quick and easy.
All of H&R Block’s tax products are designed with you in mind and come with excellent customer service and high ratings!
Using H&R Block Self-Employed Online Tax Filing
In this review, we’ll be looking at using H&R Block’s new Self-Employed Online Tax Filing option available for small business owners.
Previously this was part of their Premium Online Tax filing choice but has now been separated and offers more features for the self-employed.
1. Get started with free online tax filing
The great thing about H&R Block online tax software is that you can get started for free. Simply choose the best option to start by inputting your information.
Don’t worry, you can always change your mind and upgrade to a different package later. You can even get started with free file online without being forced to create an account!
2. Input your personal information
You have the choice to import your information from last year’s tax information, either via direct uploading or accessing your info online. Otherwise you can input your personal information manually.
You’ll answer questions related to:
- Filing status
- Name and physical address
- Date of birth
- Social Security number
3. Check your total income streams
Once your personal information has been filled in, then you’ll choose the different ways you earned money throughout the past year.
This may not include everything (yet!) but choose the boxes that best fit your situation. You can always add more options later.
4. Choose the type of business income
Once you have all of your personal information and income from W-2s input into the tax software, you can then start putting in information related to your freelance or self-employed income.
First, choose the type of business you operate every year. Now, this is a fairly new feature that H&R Block rolled out in 2018 (for the 2017 tax filing season).
Which should you choose?
It’s my understanding that if you choose the “freelancer/contractor” option it means you’re simply a sole-proprietor and you operate under your personal Social Security number.
If you choose the “self-employed or small business” option, you’ll be asked to input your income and expenses as operating as an LLC with a separate Tax ID number.
In either case though, I don’t think you can go wrong! So just make your best guess and let the software figure out the rest. You can always go back and update your choices later.
5. Upload any 1099 tax forms
Since you’re a freelancer or self-employed business owner, you’ll need to input this information in order to fill out Schedule C. This will be filed along with your personal tax return.
To do this using H&R Block Tax Software, simply add up all the income from your 1099s and then list out any other income earned that wasn’t listed on a 1099. The online program allows you to easily do this by uploading your 1099-MISC form or entering it manually.
Keep hitting the green “Add Income” button until you’ve listed out all the 1099-MISC, then click “Next”.
Once you’ve added all of your tax documents (W-2s, 1099s) you will then input the rest of the sales made from services, products, and other offerings. This includes any miscellaneous income sources you earned throughout the year.
6. Claim your expenses and deductions
Now that your business income has been listed out, it’s time to input your business expenses. Be sure to the check the boxes for all the expenses your business had throughout the year.
7. Upgrade to H&R Block Self-Employed Online
At this point if you didn’t start off choosing the H&R Block Self-Employed Online Tax Filing option, you’ll be prompted to upgrade so you can access all of the features.
As mentioned, there are two options for the best online tax filing service: Premium or Self-Employed. Both of these will work when you’re a freelance contractor or a self-employed business owner.
H&R Block Self-Employed Online Tax Filing Costs
You can easily sign up to free file online with H&R Block by choosing one of their 4 main tax filing options.
- Free Online Tax Filing – $0 and is best for new tax filers or very simple tax returns.
- Deluxe Online Tax Filing – $49.99 and is best if you own a home or have lots of deductions.
- Premium Online Tax Filing – $69.99 and is best if you have investments, own real estate property or are a freelancer/contractor.
- Self-Employed Online Tax Filing – $99.99 (NEW) and is best for the self-employed and small business owners.
If you get through the entire online tax filing process and discover you don’t want to pay the fee that H&R Block charges, you don’t have to continue. You can simply start over with another program that you may like better, or that offers a lower price.
TaxAct is a great alternative to using H&R Block Self-Employed Online Tax Filing since it only costs a flat $60 fee.
However, if you want to continue with the H&R Block online filing process, you’ll pay around $75 (and sometimes more) to complete everything.
If you’re uncomfortable with filing your self-employed taxes on your own, you can easily upgrade to the H&R Block Tax Pro Go add-on. An expert will review your information for complete accuracy!
The Bottom Line
H&R Block is a well-established tax company with tax software that’s been around for years. Their services and features for online tax filing are hard to compare against other online tax services.
If you’re a freelancer or self-employed business owner looking for the best, and most budget-friendly online tax service, check out H&R Block Self-Employed.
You can get started for free and there’s obligation to pay for the service unless you like the features offered and are ready to file! Plus, with add-ons like state income tax filing and the Tax Pro Go service, you’ll never be without helpful options.
Visit H&R Block Online to start your small business tax return today!