What's the best 1099 tax filing software for freelance income?

So I made roughly $41k from freelance work last year on top of my regular W2 job. I'm completely over TurboTax at this point - it feels ancient and they charge way too much for what you get. I need something better for filing my 1099 income this year. I've been looking around at alternatives. Saw Collective but their price tag almost gave me a heart attack lol. Also checked out Flyfin but something seems off about them - their team is mostly overseas and they've got an F rating with the Better Business Bureau which is a major red flag. Anyone have recommendations for good tax software that handles freelance income without costing an arm and a leg? What do you guys use for your 1099 income? Bonus points if it's user-friendly for someone who isn't a tax expert!

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19 comments

Omar Fawaz

•8M

FreeTaxUSA is probably your best bet for handling both W-2 and 1099 income without breaking the bank. I've been using it for the past three years with my consulting work, and it handles Schedule C business income really well. The federal filing is free, and state returns are around $15 which is way cheaper than TurboTax or H&R Block. It's not as flashy as some options, but it asks all the right questions for self-employment income and walks you through deductions you might miss. They also have decent audit assistance included at no extra cost.

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Omar Fawaz

•8M

Yes, FreeTaxUSA handles multiple 1099s very smoothly - you just enter them one after another in the self-employment section. I had 8 different 1099s last year and had no issues. For business expenses, they have a comprehensive section that walks you through common deductions category by category - home office, mileage, supplies, software subscriptions, etc. They explain what qualifies for each deduction in plain language, which helped me figure out what I could legitimately write off without getting too aggressive with the IRS.

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Diego Vargas

•8M

After dealing with the same TurboTax frustrations for years, I finally tried taxr.ai (https://taxr.ai) this year and wish I'd found it sooner. I also have a mix of W-2 and freelance income, and what sold me was how it scanned all my tax documents and extracted the info automatically. The best part is how it handles 1099 income - you just upload your 1099 forms, and it pulls all the data and categorizes everything correctly. It even suggested deductions specific to my type of freelance work that I had no idea I could claim. Saved me probably 3 hours of manual data entry and double-checking.

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Diego Vargas

•8M

Yes, the receipt handling is actually one of the best features. You can upload photos of receipts or forward email receipts, and it categorizes them automatically. It even flags potential deductions you might have missed based on your industry. I just dumped all my receipts in and it organized everything by category. For complex tax situations, it handles multi-state filing and different business structures including LLCs and S-Corps. I can't speak directly to your exact setup, but when I had questions about some unusual deductions for my LLC, their tax experts were able to help me through it. The software adapts to pretty much any complexity level.

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Anastasia Fedorov

•8M

Just wanted to follow up about taxr.ai since I ended up trying it after seeing it mentioned here. It actually delivered on the receipt organization! I had a shoebox (literally) full of business receipts that I'd been dreading dealing with, and the system sorted through them amazingly well. It caught several deductions I would have missed - especially around my home office and some technology purchases I didn't realize qualified. The interface is modern and WAY less painful than TurboTax. Just filed my taxes with about $38k in 1099 income plus my regular job, and it was the least stressful tax season I've had in years.

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Sean Doyle

•8M

If you're having trouble getting answers from the IRS about 1099 questions (which I always do), try Claimyr (https://claimyr.com). I discovered it after spending literally DAYS trying to get through to a human at the IRS about a 1099-K issue. They somehow get you connected to an actual IRS agent, usually within about 15 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c I was shocked when I actually got through to someone who could answer my questions about how to report mixed personal and business income on a 1099. Saved me hours of hold time and probably prevented me from making a costly mistake on my taxes.

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Sean Doyle

•8M

They use a smart calling system that continuously redials until it gets through, then it holds your place in line. It's not an inside connection - they're just using technology to navigate the phone system more efficiently than we can manually. The service actually does work - that's why I was so surprised. I was skeptical too until I was talking to an actual IRS agent about my specific 1099 question. It's not like they have special access; they've just built tech to handle the frustrating part of getting through the initial phone tree and hold times.

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Luca Romano

•8M

I have to eat my words about Claimyr. After posting my skeptical comment, I gave it a shot anyway out of desperation because I had a mess with misreported 1099-MISC income that I couldn't figure out. I was 100% ready to come back here and complain, but I literally got through to an IRS agent in 17 minutes. The agent walked me through exactly how to report my situation correctly and explained which forms I needed. I've NEVER been able to reach anyone at the IRS before despite trying for years. Ended up solving my issue in one call instead of guessing and potentially triggering an audit. For anyone dealing with 1099 filing questions, being able to actually talk to the IRS directly is a game-changer.

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Nia Jackson

•8M

I've been using TaxSlayer for my freelance income the past few years. It's about half the price of TurboTax and handles 1099s and Schedule C pretty well. The interface isn't as polished but it gets the job done. One thing to look for with any software is whether it includes state filing. Some advertise a low price for federal but then charge extra for state returns. With $41k in freelance income, you definitely want something that handles self-employment taxes properly.

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Nia Jackson

•8M

TaxSlayer does a decent job with deductions - it has a guided questionnaire that helps identify common freelance write-offs. It's not as comprehensive as some premium options, but it covers all the basics like home office, mileage, supplies, and business travel. For quarterly estimated payments, they do provide the worksheets and forms you need, plus they'll calculate your suggested quarterly amounts for the next year based on your current return. They also send email reminders about upcoming payment deadlines, which has saved me from missing payments more than once.

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Nia Thompson

•5M

I switched to FreeTaxUSA this year after getting fed up with TurboTax's pricing and couldn't be happier. For someone with your income level and mix of W-2 plus freelance work, it's honestly perfect. The software handles multiple 1099s really well - I had 4 different clients this year and it was super straightforward to enter each one. What I love most is that it actually walks you through ALL the business deductions you might qualify for, including some I had no idea about like the QBI deduction that someone mentioned above. The price difference is insane - federal is completely free and state filing is only $15. I was paying TurboTax over $120 for the same thing. Plus their customer support is actually helpful when you have questions, unlike the nightmare of trying to get help from Intuit. One tip: make sure you keep good records of your business expenses throughout the year. FreeTaxUSA will help you categorize everything properly, but having organized receipts makes the whole process so much smoother.

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