Investing in the best software for income tax return filing is important for every tax filer. It is even more essential for freelance contractors who may have complicated tax requirements. Freelancers often need specialized tax assistance, but they might not have the budget to hire an accountant or outsource who handles their finances. Self-employed workers should invest in software that:
- Tracks all income and expenses
- Calculates self-employment taxes
- Correctly fills out forms (i.e.: Schedule C and Schedule SE)
These are just some of the complex requirements that an independent contractor navigates. Getting joint tax software like Advanced Micro Solutions’ complete database program to take care of your accounting and filing duties is practical. It is also the most affordable solution for filers on the market.
Our 1099-etc E-Filer lets users produce 1099 and W-2 files that they may need to send to the IRS or SSA using a user-friendly electronic format.
Why Freelancers Need the Best Software for Income Tax Return Filing
Most freelancers know to expect a different tax filing experience when tax season rolls around. Without having an employer handling their income and most of the deductions, freelancers are taking on additional tax burdens and filing requirements.
The best software system should help you navigate reporting:
Multiple Income Sources
Working with multiple clients means that you will likely receive different 1099 forms, possibly including:
- 1099-NEC
- 1099-MISC
- 1099-K
Finding comprehensive tax filing software will keep these forms organized. It will also help to easily reflect different income streams if the IRS audits you.
Self-Employment Taxes
Calculating what you owe for Social Security and Medicare can be stressful. The best software for income tax return filing helps freelancers calculate these taxes. Automatic calculations save you a tremendous amount of time that you can re-focus on your actual services.
Business Expenses
Freelancers tend to learn relatively quickly that there are many ordinary and necessary business expenses that you can deduct to minimize the taxable income. Reliable accounting and tax filing software can help you organize which expenses are eligible for deduction, such as:
- Mileage
- Software
- Supplies
- Home office expenses
Quarterly Estimated Taxes
Calculating and tracking your estimated quarterly taxes throughout the year is easier with a full accounting and tax filing program. Investing as soon as possible in the best software for income tax return filing will help you to avoid major penalties with the IRS.
How Does Tax Return Filing Software Help Freelancers?
There are several key advantages to freelancers investing in worthwhile tax software. Any tax program should offer:
A Streamlined Process
Using software with step-by-step instructions and/or a menu-driven format can save freelancers a significant amount of time. Minimizing an otherwise intimidating process with software that has entry screens resembling actual forms is great for new freelance contractors.
Secure Record-Keeping
Filing your taxes with an electronic system will centralize and store your records for the next tax season or in the event of IRS audits. The best software for income tax return filing will protect:
- Tax filings
- Any essential documents
- Receipts
Fewer Errors
Ensuring greater accuracy is one of the biggest benefits of e-filing software. Even an affordable desktop system without the bells and whistles of cloud-based software should provide its users with automated calculations and built-in error checks.
What Should Freelancers Look for in Tax Filing Software?
Contractors need to know that a tax filing software vendor has a strong customer support arm. It is easy for a technological glitch to affect your ability to meet a deadline when you do not have a payroll or HR department to discuss troubleshooting options.
Electronic filing is faster, easier, and more accurate than filing paper returns.
Tax software may not eliminate certain mistakes, but the risk of costly errors drops significantly when you utilize software. The paper return error rate is 21% compared to a less than 1% error rate with e-filed returns. As a small business, we understand how cost-saving that is for both a business and an individual. Just like we know it is important that a live expert answers a call for assistance instead of someone who is unfamiliar with our modular suite of tools.
E-Filing Solutions with AMS
Download our free 1099-etc Demo software today and determine whether you prefer using our E-File Direct (add-on) or E-File Services.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available
We do not expect you to take our word for it. See if our E-Filer and/or any of our other tools make sense for your needs and can become the best software for income tax return filing.