What a 1099 Side Gig Does to Your Tax Software Bill
A Side Gig Usually Moves You Up One Price Tier
A W-2 job plus one 1099 is no longer a simple return, and most brand-name free tiers stop there. As of October 2026, TurboTax charges $139 federal for the tier that handles self-employment, and TaxAct charges $109.99. FreeTaxUSA and Cash App Taxes both file a Schedule C return free at the federal level. For a side gig with a handful of expenses, the free options do the same job.
The paid tiers earn their price in narrower cases. Those are a first-ever Schedule C, many deductions you are unsure about, or a wish to have an expert check the return. Confirm current pricing on the official site before you start entering anything.
Why One 1099 Changes the Software You Need
Side gig income arrives on a 1099-NEC from a client or a 1099-K from a payment platform. Either way, the IRS treats you as self-employed for that income. You report it on Schedule C and calculate self-employment tax on Schedule SE.
That pair of forms is what software companies price around. A return with only a W-2 and a little bank interest fits a free tier. Add Schedule C and the same companies move you to their self-employed product.
The threshold that matters is low. The IRS says you have to file and pay self-employment tax once net earnings from self-employment reach $400. A weekend of deliveries or one design job can cross it.
The tax itself is also bigger than people expect. Self-employment tax is 15.3 percent of net earnings, made of 12.4 percent for Social Security and 2.9 percent for Medicare. That sits on top of regular income tax, which is why expense tracking matters more than the software brand.
What Each Program Charges for a Schedule C Return
- ● FreeTaxUSA federal $0, state $15.99
- ● TaxAct Self-Employed $109.99 plus state
- ● TurboTax Premium $139 plus state
The table lists the tier each program uses for side gig income, with prices checked on official pages in October 2026. Brand-name prices can change through the season, so treat these as a snapshot.
| Program | Tier that handles Schedule C | Federal price | State price | Paid expert help |
|---|---|---|---|---|
| FreeTaxUSA | Same free product for all situations | $0 | $15.99 per state | Pro Support $64.99 |
| Cash App Taxes | Single free product | $0 | $0 | Not listed on its page |
| TaxAct | Self-Employed | $109.99 | Additional | Xpert Assist $45 |
| TurboTax | Do It Yourself Premium | $139 | Additional | Expert Assist tiers, priced separately |
| H&R Block | Self-employed online tier | Check the official site | Check the official site | Check the official site |
| IRS Free File Fillable Forms | Fillable federal forms | $0 | Not included | None |
Two rows deserve a note. H&R Block blocked automated access to its pricing page, so no figure appears here rather than a guessed one. Fillable Forms are open at any income level but do little of the math for you.
The spread is large. A one-state Schedule C return runs $15.99 at FreeTaxUSA and $0 at Cash App Taxes. At TaxAct or TurboTax it starts above $100 before the state return is added.
The Free Federal Options Are Real, With Limits
FreeTaxUSA says federal returns are free for every tax situation, and its self-employed features are listed for freelancers and contractors. The cost comes from state filing at $15.99 and optional upgrades. Deluxe support at $7.99 adds live chat and unlimited amended returns.
Cash App Taxes says it is free for both federal and state returns. It also says that stays true if you received a 1099 from work. Its trade-off is a narrower feature set, so read its list of unsupported situations before you begin.
IRS Free File is the other route, and it works differently. The guided software is for filers with an adjusted gross income of $89,000 or less. Each partner company sets which forms it supports. Our breakdown of where IRS Free File ends and paid software begins covers that lane in detail.
Free does not mean less accurate. The forms are the same IRS forms, and the arithmetic is done by software either way. What changes is how much hand-holding you get on deductions.
Where the Paid Tiers Earn Their Price
TurboTax says its Premium tier can sync accounts to find self-employment deductions. It also offers to snap and auto-fill a 1099-NEC or 1099-K. The account sync currently works on a single Schedule C only. For someone with dozens of small expenses scattered across cards, that sorting has real value.
TaxAct positions its Self-Employed tier for contract, freelance and rideshare work. That is the same audience at about $29 less than TurboTax on the federal side. Its Xpert Assist add-on is a flat $45 for live expert help.
The guidance matters most in a first year. Questions about home office space, vehicle mileage and supplies are where people either miss deductions or claim ones that do not hold up. A tier that walks through those questions can save more than it costs.
If you already know your expenses and have a clean spreadsheet, that advantage shrinks. You are mostly paying for an interview format you no longer need.
Switching Programs Costs Less Effort Than It Used To
Many side gig filers stay with an expensive program only because last year’s return lives there. That lock-in is weaker than it looks. TurboTax says Premium can import a PDF of last year’s return from another major tax program, including the Schedule C.
Going the other direction takes a little more work, but not much. Download last year’s return as a PDF before your access lapses. The numbers you need from it are few: your prior-year tax total, any carried-over losses, and depreciation on equipment.
The prior-year tax total matters for more than the software. It is the figure many people use to size safe harbor estimated payments for the coming year. Keep that page somewhere you can find it in April.
A quick test helps. Price the same return at two programs before you enter data at either one. A switch that saves $100 or more a year is usually worth the hour it takes.
What the Same Return Costs at Each Program
Picture one W-2 job, one 1099-NEC, a few hundred dollars of supplies, and one state return. Using October 2026 list prices, the costs look like this.
- FreeTaxUSA: $0 federal, plus $15.99 for the state return.
- Cash App Taxes: $0 federal and $0 state.
- TaxAct Self-Employed: $109.99 federal, with state added on top.
- TurboTax Do It Yourself Premium: $139 federal, with state added on top.
Adding expert help widens the gap. FreeTaxUSA Pro Support is $64.99 and TaxAct Xpert Assist is $45, while TurboTax prices its expert tiers separately. A free federal program plus a paid support add-on can still cost less than the base price of a brand-name self-employed tier.
The Add-Ons That Turn a Cheap Return Into an Expensive One
- ● Paying from your refund costs extra
- ● Expert help is a separate charge
- ● Audit protection is optional
The headline price is rarely the final price. State returns are the first addition, and TurboTax and TaxAct both list state as additional to the federal figure.
Paying from your refund is the next one. FreeTaxUSA charges $24.99 to take its fee out of your federal refund instead of from a card. That charge exceeds the state filing fee itself.
Audit protection is the third. FreeTaxUSA sells Audit Defense for $19.99. Whether it is worth it depends on how documented your expenses are, not on the software.
Amended returns can surprise side gig filers, because a late 1099 often arrives after you file. FreeTaxUSA charges $16.98 for a current-year amendment, unless you bought Deluxe or Pro Support.
Filing on Extension Before October 15
If you filed an extension for your 2025 return, the deadline is October 15, 2026. An extension gave you more time to file, not more time to pay. Any balance owed was still due in April.
TaxAct is running a flat-price offer for this window. New customers who start on or after September 17, 2026, and file by October 15 can file federal and all state returns for $70. That beats its standard Self-Employed price plus state, but only for first-time TaxAct users.
FreeTaxUSA and Cash App Taxes cost the same in October as in February. For an extension filer who just needs the forms done, the free federal options stay the cheapest route.
Which Program Fits Your Side Gig
- ● One 1099, few expenses, file free
- ● Many deductions, buy the guidance
- ● First Schedule C, add expert help
Each situation below describes a common side gig return. Match yours to the closest one, then check the exact tier price before you begin.
Situation: one 1099-NEC, a W-2 job, and a few expenses you already totaled. FreeTaxUSA or Cash App Taxes handles this at little or no cost. Your federal return carries no fee, so the only choice is about state filing.
Situation: rideshare or delivery work with mileage and a 1099-K. The forms are still free at FreeTaxUSA, but mileage is easy to get wrong. A paid tier with a guided interview, or a one-time expert review, is worth considering.
Situation: first year filing Schedule C, with many expenses you are unsure how to classify. This is where a paid tier with expert help earns its price. TaxAct with Xpert Assist or a TurboTax Expert Assist tier both fit, at different price points.
Situation: you are filing on extension now and have never used TaxAct. The $70 flat offer covering federal and all states is worth pricing against FreeTaxUSA before October 15.
Situation: side income plus stock sales or rental property. Several forms stack up, and free tiers handle the forms but not the judgment calls. A paid tier or a human preparer is the safer choice.
What to Have Ready Before You Open Any Program
Gather every 1099-NEC and 1099-K first, plus your W-2. Missing one is the most common reason a side gig return gets amended later.
Next, total your expenses by category from bank and card statements. A clean list makes the free options as easy as the paid ones. If you have not set aside money for the bill, our guide on how much of each freelance payment to hold back for taxes shows the math.
Finally, check whether you made estimated payments during the year. Every program asks, and a forgotten payment means you pay twice. Keeping that tax money in a separate account, as in our look at savings accounts for freelancers, makes it easy to trace.
This is general information rather than tax advice. For an unusual year, a credentialed preparer usually costs less than an expensive mistake.
Totaling expenses is much faster when business spending already sits in its own account. If yours is still mixed with personal spending, see whether a freelancer needs a separate business bank account before next year’s return.
FAQ
Do I have to report side gig income if it was small?
Yes, if your net earnings from self-employment reach $400 or more. The IRS says that is the point where you have to file and pay self-employment tax, even if your W-2 job alone would not require a return. The income goes on Schedule C and the tax on Schedule SE.
Can I file a 1099-NEC with free tax software?
Not in most cases. Free tiers at the big brands are built for simple Form 1040 returns, and Schedule C pushes you into a paid tier. FreeTaxUSA and Cash App Taxes are the exceptions, since both say self-employment returns are free at the federal level.
How much does TurboTax charge for self-employed income?
As of October 2026, TurboTax lists Do It Yourself Premium, the tier that replaced Self-Employed, at $139 federal with state additional. TaxAct lists its Self-Employed tier at $109.99 plus state. Prices move through the season, so confirm current pricing on the official site.
Is paid tax software worth it for a small side gig?
Not automatically. The paid tiers add guidance on business deductions, prior-year imports and expert help, but the forms are the same. If your side income is one 1099 with a few expenses, a free federal option handles the same Schedule C.
Can I deduct expenses from 1099 side gig income?
Yes. Self-employment tax is 15.3 percent of net earnings, split into 12.4 percent for Social Security and 2.9 percent for Medicare. Business expenses on Schedule C lower that net figure, which lowers both the income tax and the self-employment tax.
Sources
- FreeTaxUSA pricing — checked 2026-10-05
- TaxAct online tax filing plans — checked 2026-10-05
- TurboTax Do It Yourself Premium — checked 2026-10-05
- Cash App Taxes — checked 2026-10-05
- Topic no. 554, Self-employment tax | Internal Revenue Service — checked 2026-10-05
- Self-employed individuals tax center | Internal Revenue Service — checked 2026-10-05
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How this article was made: it was drafted with AI assistance from the official sources listed above, and its figures were checked against those pages on the dates shown. It is not based on personal hands-on testing.
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