Being your boss is not all snooze buttons and sweatpants; most of the time, it is cabin fever, fierce competition for the client, caffeine withdrawal and fickle cash flows. Freelancing is an arduous task, and during tax season, it seems like there is not time enough for all those details required.
Don't be surprised that, according to a 2018 survey by QuickBooks, it was discovered that doing your taxes is the most difficult challenge for a freelancer, hence the need for freelance tax software.
It takes great attention to detail and patience to file tax. This is because filing tax must be done correctly as it is a crucial task that has an impact on a lot of other processes. Most freelancers will not have the time to file their taxes carefully, and many others cannot afford a tax professional, hence the need for freelance tax software.
The fact that there is much freelance tax software calls for carefulness to pick the best and most suitable.
1. What is freelance tax software?
This is a program that helps and guides freelancers through the process of filing and preparing their returns. The program helps them to comply with tax laws and even gives hints on various freelance tax benefits that exist. In summary, this software makes it less tasking to do anything about your freelance taxes.
2. What to look for in freelance tax software?
Price does matter when looking for freelance tax software but bear in mind that the most expensive software is not necessarily the best application. Any program chosen should be able to handle some complicated tax returns and promise you a high level of protection, just in case you are audited.
As a freelancer, you must keep your eyes on the lookout concerning specific features that the best tax software should have when choosing one for yourself. These includes:
- Accuracy guarantee
- Thorough review process to check against possible deductions
- Solid customer support
- An easy to use interface
3. Versions of freelance tax software
There are two versions of every kind of tax software that you see online.
- Paid versions: You need to subscribe to these software services to file your local, state and federal taxes.
- Free versions: These are programs that file for all levels of your taxes for free. These apps may be limited in some complex tax deductions and estimations.
Don’t settle for a cheap budget software as a benchmark; this does not mean that you pay for features that you do not need as well. But at least get your basic features covered in your preferred software. The best freelance tax software should be affordable and most importantly have tailored features to take of your need, which includes:
- Track your income
- File expenses efficiently and
- Increase annual savings
The best freelance tax software depends on your choice as a freelancer; you might want to file your taxes through a mobile device, decide to use the free version of the software, or chose software and platform based on the peculiarity of your business. These options will affect your decision as regards the best freelance tax software for you.
You should be careful in choosing a freelance tax software since approximate tax estimation depends on the credibility of the software you select. Credible tax software will help you in checking for mistakes, optimizing your tax benefits, and it will offer you unparalleled customer support.