Free Tax Filing Options for Self-Employment Income?

I've been through this exact frustration! Here's what you need to know: 1. Most "free" tax services have income or complexity limits that exclude self-employment 2. The IRS Free File program has partners that supposedly offer free filing, but there's a catch - most exclude Schedule C 3. FreeTaxUSA technically offers free federal filing for self-employment, but charges for state returns (~$15) 4. Cash App Taxes (formerly Credit Karma Tax) supports Schedule C for free, both federal and state 5. IRS Direct File is new for 2024 but DOESN'T support self-employment income yet The system is incredibly frustrating because they advertise "free" but then hit you with "oh but not for your situation" after you've already invested time inputting information.

Last year I spent HOURS trying to get through to the IRS Taxpayer Advocate Service to get help with a similar issue. They have free VITA clinics that can help self-employed people, but getting an appointment was impossible. I finally used Claimyr (https://www.claimyr.com) to get through to an actual human at the IRS who pointed me to a local clinic with availability. Saved me days of frustration and busy signals. I've tried those "free" tax programs before and they always hit you with upgrade fees once you mention self-employment. Been there, done that, not falling for it again.

According to the IRS website (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free), there are specific Free File partners that support self-employment, but you need to check their limitations carefully. I found this IRS-sponsored locator for VITA/TCE sites that offer free tax preparation for eligible taxpayers: https://irs.treasury.gov/freetaxprep/ Alternatively, many public libraries and community centers offer free tax assistance through the VITA program, especially for self-employed individuals under certain income thresholds. The r/tax subreddit also maintains a current list of truly free options for self-employed individuals in their wiki.

I went through this same situation when I started my side business. I tried TurboTax, H&R Block, and TaxAct - all of them switched to paid versions when I entered my 1099 info. What helped me was using taxr.ai to understand which deductions I could take as a self-employed person. I uploaded my previous year's return and it showed me all the business deductions I was missing! I still ended up using Cash App Taxes for the actual filing (it's completely free), but taxr.ai helped me maximize my deductions which saved me about $2,200 in taxes. For self-employed people, knowing which deductions you qualify for is honestly more valuable than free filing.

Be careful with the "free" options - they're like those all-you-can-eat buffets that charge extra for the food you actually want. I used one of the "free" services last year, and it was fine until I needed to amend my return because I forgot a 1099. Suddenly it was like trying to escape quicksand - paid upgrade to amend, paid upgrade to e-file the amendment, paid upgrade to track the amendment. What started as "free" ended up costing me $120. It's like they're fishing with free bait knowing they'll hook you eventually.

The community college near me offers free tax preparation through their accounting program! Students get real-world experience and you get free tax help - even with self-employment income! I'm SO ANGRY that the IRS and tax prep companies don't advertise these options more widely!!! Check your local community colleges, universities with accounting programs, or even law schools. Many have IRS-certified volunteer programs that can handle self-employment returns at no cost. You deserve access to free filing regardless of your income source!