Running your own business can get expensive. There are endless apps, courses, and packages you can buy to increase productivity and invest in future growth.
This is also true about filing small business taxes online as there are actually many budget-friendly solutions to choose from.
But if you’re looking for the best tax software for small businesses and need to file your self-employed taxes, look no further.
Here’s an honest review of how to get started with TurboTax Self-Employed and how to use it to maximize tax savings as a business owner.
What is TurboTax Self-Employed?
TurboTax Self-Employed is part of the TurboTax family of online tax filing products which is owned by Intuit. They recently added many new features to this service to help freelancers and small business owners take filing taxes online into their own hands.
Filing self-employed taxes is a bit more complicated than personal income taxes due to the fact that you have additional forms, including Schedule C and Schedule SE.
But TurboTax Self-Employed takes the worry and headache out of DIY taxes by offering a simple but accurate tax filing service.
Here’s a quick summary of the benefits and features that TurboTax Self-Employed offers.
- Expert live help, on-screen any time you need it
- Self-employed deductions finder
- Accurate income and expense tracking all year long
- Tips to help you work smarter not harder
- Access to the right tax forms for your situation
- Costs $119.99 (but could be free with QuickBooks Self-Employed Tax Bundle)
File small business taxes with TurboTax Self-Employed
The absolute best part of using TurboTax Self-Employed to file taxes online is that it’s part of Intuit.
If you use Mint for your personal budget transactions and QuickBooks Self-Employed for business income and expenses, you can import all of this into your tax filing process.
Any variation of the other Intuit products that you use can be exported or imported into the other products.
1. Create your free TurboTax account
To get started with a free account, you simply sign up using any of your other Intuit log-in information. Or create a brand new account within a few seconds. This process is quick, painless, and totally free.
2. Choose the best tax filing product
Obviously, if you are a freelancer and own a small business you already know that you’ll likely be using TurboTax Self-Employed product. But it’s important to choose the boxes that correlate with your personal situation.
Choose any and all boxes that apply! Just make sure you check the “self-employed/independent contractor” option.
3. Share last year’s tax information
Click the box for how last year’s tax return was filed, then fill in your first name and birth date. This helps TurboTax Self-Employed zero in on tax deductions and credits, and focus on questions and topics that are relevant based on your age.
You’ll then be prompted to answer some questions related to your filing status, zip code, dependents, housing situation, and other personal info to help formulate your tax return correctly.
4. Answer questions related to your business
In order for TurboTax Self-Employed to accurately pull all the relevant tax forms, choose from one of the boxes related to whether or not you paid employees or contractors and if you had any inventory.
5. Confirm your personal information
Review the information you’ve input so far. TurboTax Self-Employed will review your situation for relevant tax deductions and credits and you move on to the next steps.
You can save your federal tax return information at any point and come back to it when you have more time.
And don’t forget, you can import all of your business income and expenses from your QuickBooks Self-Employed accounting software (or any other QB or Mint programs you use).
What does TurboTax Self-Employed cost?
The nice thing about TurboTax Self-Employed is that you can get started for free and only have to pay when you actually file your federal tax return.
If and when you’re ready to hit the “submit” button, it will cost you $119.99 plus an additional fee if your state requires you to file a return with them.
If you pay $12 /mo for the QuickBooks Self-Employed Tax Bundle, your TurboTax Self-Employed filing could be free.
TurboTax Self-Employed features for small business taxes
There are several different features that I really like about the TurboTax Self-Employed tax filing software.
For one, the interface and questions are very easy to navigate and answer accurately. The program also does a great job of explaining why the numbers are the way they are, to help you better understand the tax savings.
Everything is worded in plain English not tax jargon, so it’s similar to having a real conversation with a tax pro who has your best interest at heart.
In the event you want to skip the interview process, you can go straight to the tax forms and fill them out yourself.
The second feature that’s awesome for doing small business taxes is the Expense Finder. It quickly searches your business bank account and credit cards for deductible business expenses that may have been forgotten or overlooked.
This will ensure you get the most tax savings possible!
Finally, you can connect with a real life tax expert using the Smart Look tool. This person is accredited and specializes in self-employment taxes so you can be sure your taxes are done correctly.
File self-employed taxes online for free
One of the main drawbacks to using TurboTax Self-Employed is that it costs $30-90 more than other competing tax filing products for small businesses.
Why? Probably because you get an upgraded convenience for it being part of the Intuit family and can import/export your yearly transactions from other programs.
But you’ll pay for this time-saving convenience by paying a bit more for tax prep. There is a money-saving hack available though!
If you already pay for QuickBooks Self-Employed every month you can file self-employed taxes online with TurboTax for free.
Yep, the QuickBooks Self-Employed Tax Bundle comes with the ability to pay estimated taxes as well as one federal return and one state return tax filing.
It might be worth it to pay $12/mo for the first 6 months and then $17/mo afterward, for the QuickBooks Self-Employed Tax Bundle. Otherwise, you’ll have to pay for a one-time tax filing with TurboTax Self-Employed only.
By bundling you’ll get an amazing bookkeeping software specifically made for freelancers, along with the ability to calculate and pay quarterly estimated taxes.
Ready to bundle savings and get free federal + state tax filing TurboTax Self-Employed?
Is TurboTax good for the self-employed?
Is TurboTax Self-Employed a good filing option for small business taxes? If you already use other Intuit products or pay for the QuickBooks Self-Employed Bundle, then YES.
I would say this is seriously the best deal for all your accounting and tax needs.
However, if you use other bookkeeping programs then TurboTax Self-Employed may NOT be the most budget-friendly option.
It does offer some really amazing features and tax savings for freelancers though, so it could be worth changing from your current program to Intuit’s bundle of products.
Since QuickBooks added new invoicing features for self-employed freelancers last year, and with the Tax Bundle savings these products are a great choice for any business owner.
Intuit is definitely pushing out stronger features and more helpful products for business owners, so we feel confident in recommending them.