Do you run a 1099 Contractor business and need to figure out which tax software you should be using? I’ve compiled a list of the best tax software for 1099 Contractor businesses.
This article is for tax professionals, general contractors who work on 1099 contracts, and others who get paid under Form 1099. These are the best tax software programs to use to file your taxes if you get paid via Form 1099.
TurboTax
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| FREE | PREMIER |
| DELUXE | SELF-EMPLOYED |
| Quick factsUser-friendly, interview-style Q&A.Live, on-screen support option offers human help at extra cost.Some of the most expensive software on the market. GET STARTED WITH TURBOTAX |
TurboTax is generally pricier than everything else out there, but even though confident filers may not need all the bells and whistles that most TurboTax online products offer, many people will find the experience and the availability of human help worth the extra cost. We’ve long praised TurboTax for its design and flow.
TaxAct
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| FREE | PREMIER |
| DELUXE | SELF-EMPLOYED |
| Quick factsGenerally less expensive than similar TurboTax and H&R Block options. (And NerdWallet users can save 25% on federal and state filing costs.)New human-support options available at an extra cost.Free version has a fee for state returns.GET STARTED WITH TAXACT |
TaxAct is less well-known among tax software providers, but it offers quality online software that generally costs far less than TurboTax or H&R Block. It may not be as fancy in some ways, but you can get on-demand, on-screen access to a tax pro like the other guys offer, and the data-entry process is similar to most of the competition. And TaxAct’s prices are hard to ignore.
Jackson HewittBest for Unlimited State ReturnsGET STARTEDOur PartnerPROS
- In-person customer service
- Virtual tax pro assistance is available
CONS
- Pitches for pricier products
| Services | Online | Standard Tax Pro from Home | Deluxe Tax Pro from Home | Premier Tax Pro from Home |
| Federal | $25 | $69 | $179 | $249 |
| State | $24 (unlimited) | $24 (unlimited) | $24 (unlimited) | $24 (unlimited) |
Since Jackson Hewitt’s bread and butter is in-person tax-prep help, you have to scroll a bit down the main webpage to get to the online tools. Jackson Hewitt is better known for its pop-up shops and kiosks that sprout up in strip malls and big-box stores during tax season, but the tax preparer also has online software for people who want to file their taxes from home.
Jackson Hewitt offers one option for online DIY filers, in addition to three more expensive tiers for people who want the help of virtual tax pros. Its Standard Tax Pro From Home tier is suitable for unlimited W-2s as well as unemployment income, student loan interest, IRAs, Social Security income and dividend income up to $1,500. The Deluxe package covers homeowners and those with dependents and itemized deductions, while the Premier tier supports self-employed individuals.
Why we chose Jackson Hewitt:
Jackson Hewitt is a safe bet if you prefer to file your tax returns with the assistance of a tax professional. Apart from having in-person options at your local mall during tax season, its customer support is comprehensive and even includes IRS audit assistance. It’s also one of the few tax preparers that don’t charge for every state filed; you’ll get unlimited state tax returns for a set fee of $24. That being said, Jackson Hewitt is one of the pricier tax software companies on our list. If you’re looking to save money, there are other options available.
Credit Karma
- PRICE: Free
- SUPPORT: Email
- ACCURACY GUARANTEE: $1,000
SIGN UP NOWWhy We Chose It
We chose Credit Karma tax because it’s completely free to use for any supported tax situation.Pros & ConsPros
- Free filing for all tax returns
- Imports from other tax software
- Free audit defense support
Cons
- Doesn’t support all forms
- No multi-state filing
- No phone support
Overview
Like its competitors, Credit Karma lets users import a previous return from other software and a photo of a W-2 and then walks them through the rest of the process using a series of questions and prompts.
Credit Karma claims to offer more filing options than its competitors’ free versions, including filing for mortgage interest, property tax, and student loan interest deductions. The software doesn’t support every type of form, however. Individuals filing in multiple states or who receive funds from a trust or estate need to look elsewhere.
As a free service, Credit Karma offers no phone support. It does, however, include audit defense for its customers which includes consultation from a representative in the event of an IRS audit who will also attend a hearing on their behalf. Users also get accurate calculations and max refund guarantees with reimbursements up to $1,000 in IRS or state tax penalties and up to $100 if another provider shows a larger refund.
E-FileBest for Year-Round DiscountsGET STARTEDOur PartnerPROS
- Navigation sidebar with installed customer support tools
- Best for simple DIY tax returns
CONS
- Pay for on-demand customer support
| Services | Free Federal Basic Software | Deluxe Plus E-file | Premium Plus E-file |
| Federal | $0 | $25.99 or $19.49 with coupon code 25OFF | $45.99 or $34.49 with coupon code 25OFF |
| State | $21 (per state) | $21 (per state) | $21 (per state) |
E-file emphasizes speed on its homepage, boasting that many users can file their taxes electronically with its online software in less than 15 minutes. It’s not only fast, but it’s also generally less expensive than other tax preparers. E-file has a basic option for federal filing, but even its Deluxe Plus and Premium Plus tiers come in under $35. It accepts promo codes, too.
E-file will automatically save your progress as you complete your tax forms. Though the platform is entirely online and promotes electronic filing, it will still let you print out your tax forms to mail in yourself. If you encounter a question before that point, you can pay for phone or email assistance.
Why we chose E-file:
If you’re a budget-conscious filer who just needs the basics, E-file gets the job done and offers year-round promotions and discounts that can help you save. Its filing process is simple: once you create an account, enter your taxpayer information and E-file will prepare your return. The standard interface features prior-year import and a help (support) sidebar that guides you every step.
Conclusion
If you’re an independent contractor, you don’t typically get 1099 forms for your work. So how do you get paid properly? There are lots of tax situations but we can all agree that maximizing our 1040 income is a must! The great news is we don’t have to rely on the IRS’ judgment alone to know how to do our taxes right. We can use software and plug-ins to fulfill our tax obligations and be sure we’re paying proper taxes.