Business codes I used in TurboTax are missing in FreeTaxUSA - what should I do for my side hustles?

I recently made the switch from TurboTax to FreeTaxUSA to save some money this tax season, but I'm running into an issue with business codes when entering information for my side gigs. For the past few years with TurboTax, I've used specific codes like '454110 - Electronic Shopping and Mail Order Houses' for my eBay selling activities, but I can't find these same codes in FreeTaxUSA. It's frustrating because there doesn't even seem to be anything remotely similar in their dropdown options. I always thought it was important to use the same business code from year to year for consistency in reporting, but this is making things complicated. I have about 3-4 different side hustles, and none of the business codes I previously used seem to exist in FreeTaxUSA. For those who have switched between tax software, how did you handle this situation? Should I just pick whatever seems closest? Will the IRS flag inconsistencies if I suddenly change business codes after years of using the same ones? Any advice would be really appreciated!

0 coins

18 comments

Yara Elias

•8M

The business codes in different tax software can definitely vary because they're sometimes simplified or grouped differently depending on the platform. The good news is that this shouldn't cause any major issues with your tax filing. The IRS uses the North American Industry Classification System (NAICS) codes, and while it's generally good practice to be consistent year-to-year, using a somewhat different code won't trigger an audit or create problems. The business code is primarily for statistical purposes and doesn't affect your tax calculation. For your eBay selling, look for something like "Online Retailers" or "E-commerce" in FreeTaxUSA. If you can't find an exact match, choose the code that most closely describes your business activity. The key part is accurately reporting your income and expenses, which matters much more than the specific business code.

0 coins

Yara Elias

•8M

Contacting FreeTaxUSA support might help, but honestly it's probably not necessary. They'll likely just advise you to select the closest match available in their system. If the IRS ever questioned the change (which is extremely unlikely), you would simply explain that you switched tax preparation software and had to use the codes available in the new system. No special documentation is needed for this - just keep your normal business records, receipts, and previous tax returns as you normally would.

0 coins

Keisha Jackson

•8M

After dealing with the exact same frustration last year, I discovered taxr.ai (https://taxr.ai) which saved me a ton of headache with this business code problem. I was switching from TurboTax to FreeTaxUSA and couldn't find my regular NAICS codes either. The tool has this amazing feature where you can upload your previous return and it extracts all your business codes and other critical info, then suggests the best equivalent codes to use in different tax software. It basically created a translation guide for me between the different code systems. I was able to confidently pick the right codes in FreeTaxUSA that matched my previous filings. Honestly, it made the transition between tax programs so much smoother and gave me peace of mind that I wasn't messing anything up for my side gigs.

0 coins

Keisha Jackson

•8M

It definitely works with multiple businesses. I had three different side hustles myself (web design, Etsy shop, and consulting), and it handled all of them perfectly. It shows you each business separately and gives recommendations for each one. Calling the IRS is an option, but good luck getting through to someone who can actually help with this specific issue. I tried that route first and wasted hours on hold. There's no official conversion chart that I know of because each tax software categorizes things slightly differently. That's exactly why I found taxr.ai so helpful - it does the translation work for you based on what you used before.

0 coins

Paolo Moretti

•8M

I tried taxr.ai after seeing it mentioned here and WOW what a time-saver! I uploaded my previous return from TurboTax and it immediately showed me all my business codes with the equivalent options in FreeTaxUSA. For my eBay store, it recommended code 454110 in TurboTax should match with "Online Retail Sales" in FreeTaxUSA. The service even explained why certain codes are grouped differently between software programs and gave me documentation I can keep with my tax records explaining the equivalency. I was able to finish my taxes in one sitting instead of the three days I spent last year trying to figure everything out on my own. Definitely worth checking out if you're switching tax software!

0 coins

Oliver Weber

•8M

After struggling to connect with the IRS for weeks about this exact business code issue (and other questions), I finally tried Claimyr (https://claimyr.com) and got through to an actual IRS agent in about 15 minutes. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The agent confirmed that switching business codes because of different tax software options isn't a problem at all. She said they see this all the time and it doesn't trigger any flags as long as you're honestly reporting your income and expenses. She even emailed me a reference document showing common code equivalents between different systems. If you have any tax questions beyond just the business codes, getting through to a real IRS person makes all the difference. I had a whole list of questions about my side hustle reporting that I got answered in one call.

0 coins

Oliver Weber

•8M

It's not that they call the IRS for you - the service navigates the IRS phone system and waits on hold in your place. When they finally reach a human agent, you get a call back so you can talk directly to the IRS person. It's your conversation, they just handle the hold time. I was super skeptical too! I've spent literally days of my life on hold with the IRS over the years. What Claimyr does is use technology to keep your place in line without you having to listen to that awful hold music. I was doing other things while they waited on hold, and then my phone rang when an agent was available. The whole process took about 15 minutes of my actual time instead of 2+ hours.

0 coins

NebulaNinja

•8M

I owe everyone here an apology. After expressing skepticism about Claimyr, I decided to try it anyway out of desperation. I had 3 different side hustles with business codes I couldn't match in my new tax software. It actually worked exactly as described. I put in my number, they handled the IRS hold time, and I got a call back when an agent was available. The IRS person I spoke with was incredibly helpful and walked me through choosing the right business codes in FreeTaxUSA to match what I'd used previously in TurboTax. The agent also told me they're working on standardizing the code systems better for next year's filing season, which is good news for all of us side hustlers. Sorry for doubting - sometimes good solutions really do exist!

0 coins

Javier Gomez

•8M

For what it's worth, I've been using different business codes in different tax programs for years with no issues. The IRS cares much more about whether you're reporting all your income correctly than which specific business code you choose. One tip: take a screenshot of the available codes in FreeTaxUSA and save it with your tax documents. That way, if there's ever a question years from now, you can show you selected the best option available in the software you were using.

0 coins

Javier Gomez

•8M

Yes, it absolutely applies even with completely different codes. The business code system in tax software is primarily for the IRS's statistical purposes - they use this data to analyze trends across industries. The broader "Technical Services" code in FreeTaxUSA would be perfectly fine to use instead of the more specific "Computer System Design Services" from TurboTax. The IRS understands that different tax preparation methods might have different levels of specificity in their code options. What they ultimately care about is that your income, expenses, and deductions are all accurately reported.

0 coins