FreeTaxUSA is one of two online tax prep apps I tested that let you file a Schedule C for free (the other is Cash App Taxes). This is a real benefit for sole proprietors like Etsy sellers and Uber drivers, who might save $100 or more compared with competing sites. Those tax prep services provide more guidance for sole proprietors, but FreeTaxUSA might be all you need if you follow the site’s instructions carefully and use its help resources.
Self-employed individuals often receive compensation via a Form 1099-NEC or 1099-MISC. FreeTaxUSA asks you questions about these first. The site now allows you to upload these forms (in PDF, JPG, JPEG, or PNG format) or scan them with your phone, although both options were marked as “Beta” during my review. The wizard also displays a page that specifically asks about any tips or overtime you might have received, as these are not taxable for tax years 2025 to 2028 due to provisions in the One Big Beautiful Bill. The app pays special attention to Form 1099-K and provides expanded instructions.
FreeTaxUSA then launches into the Schedule C section, where you answer more questions and enter any income that your 1099s didn’t report. Next, you enter totals for common business expenses by category, such as advertising, office supplies, travel, and utilities. You can also list miscellaneous expenses. If you haven’t been organizing and storing your tax-deductible business costs throughout the year, settle in for a long session. Additional pages collect information about costs related to your health insurance, home office, and vehicles, among other expenses.
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(Credit: FreeTaxUSA/PCMag)
Beyond self-employment and W-2 income, you can report income you earned through farms, partnerships, rental services, and S corporations.
