For self-employed individuals, freelancers, and gig workers, choosing the right tax software can save hundreds of dollars—not just in product cost, but in uncovered deductions and missed credits. In 2026, the two heavyweights, TaxAct and TurboTax, continue to dominate the market, but their pricing and feature sets have evolved. This head‑to‑head comparison breaks down exactly what each platform charges for self‑employment filing, what you get for your money, and which one delivers better value for different types of independent earners.
We’ll analyze federal and state filing costs, add‑on fees (like audit defense or live expert help), the quality of self‑employment deduction finders, and hidden upsells that can inflate your final bill. By the end, you’ll know whether TurboTax’s premium price is justified or if TaxAct offers the smarter economic choice for your 2026 return.
➡️ Read next (recommended tax reads)
📋 Table of Contents
TaxAct vs TurboTax: 2026 Overview
Both TaxAct and TurboTax offer specialized versions for self-employed filers, but their approaches differ. TurboTax Self-Employed is a premium product with extensive guidance and a massive deduction library; TaxAct’s Self-Employed tier is priced more aggressively but still covers all essential Schedule C forms. Below we compare the core offerings.
💡 Key Insight for 2026
The IRS has increased audit scrutiny on self-employment income. Both platforms now include enhanced audit support, but the level of coverage varies significantly between free guided assistance and full audit representation.
| Feature | TaxAct Self-Employed | TurboTax Self-Employed |
|---|---|---|
| Target Audience | Cost-conscious freelancers, gig workers | Freelancers wanting maximum guidance & deduction discovery |
| Federal Filing Price | $54.95 | $119.00 |
| State Filing (per state) | $44.95 | $59.00 |
| Max Refund Guarantee | Yes | Yes |
| Audit Support | Audit assistance (guidance only) | Audit defense included (with paid tiers) or add‑on |
| Live Expert Help | Add‑on ($39.95) | Add‑on (varies, ~$89) |
Self-Employment Pricing Breakdown (2026)
Price is often the deciding factor. But the headline numbers can be misleading because both platforms aggressively upsell. Here’s the real cost for a typical self-employed filer with one state return.
Federal: $54.95 | State: $44.95
Save up to $78 vs TurboTax
* No add‑ons. Includes all essential Schedule C forms, depreciation, home office deduction, and business use of car.
Federal: $119.00 | State: $59.00
* Includes “Maximum Refund Calculator” and industry-specific deduction guidance, but audit defense is an extra $59.99.
Additional Cost Considerations
- Multi‑state filing: TurboTax charges $59 per additional state; TaxAct $44.95. If you live in one state but earned income in another, this matters.
- Audit defense: TaxAct offers an optional Audit Assist add‑on for $39.95; TurboTax’s Audit Defense is $59.99 if not included in a higher tier.
- Live expert review: Both offer final review by a tax professional. TaxAct charges $39.95; TurboTax’s “Live Assisted Self‑Employed” starts at $189 (includes state).
- Discounts: TaxAct frequently runs 20‑25% off for early birds; TurboTax rarely discounts its Self‑Employed tier.
Features That Matter for Self-Employed Filers
Price is only half the equation. The real value lies in how well the software helps you uncover deductions and avoid mistakes.
Deduction Discovery & Guidance
Core FeatureTurboTax’s “ItsDeductible” and interview‑style questions are famously thorough. It asks about side‑hustle expenses you might overlook—like home office, equipment depreciation, and even mileage. TaxAct covers the same deductions but with a simpler questionnaire; you need to know what you’re looking for to get the most out of it.
📊 Case Study: Freelance Writer
Maria, a freelance writer with $60,000 net income, used both platforms side‑by‑side. TurboTax uncovered an extra $1,200 in deductions (office supplies, software subscriptions, and mileage) that TaxAct missed because she didn’t know to enter them. Her refund was $280 higher with TurboTax, more than offsetting the price difference.
Forms & Complexity Handling
Technical CapabilityBoth handle Schedule C, Schedule SE, and self‑employment tax forms flawlessly. However, if you have more complex needs—like depreciation of assets, business use of home, or inventory—TurboTax offers more hand‑holding. TaxAct supports the forms but expects you to understand the entries.
Hidden Costs & Upsells: What They Don’t Tell You Upfront
⚠️ Watch Out for These Add‑Ons
- State e‑file fees: Both charge extra for each state return. TurboTax’s state fee is ~$15 higher than TaxAct.
- Audit defense: Neither includes full audit representation in the base self‑employed price. TurboTax’s Audit Defense costs $59.99; TaxAct’s Audit Assist is $39.95.
- Live expert help: Need to speak to a CPA? TurboTax Live Assisted Self‑Employed starts at $189 (includes state). TaxAct’s Expert Review is $39.95 but only a final review, not full Q&A.
- Importing from bookkeeping software: Both support importing from QuickBooks, FreshBooks, etc., but advanced import features may require upgrading.
Real-World Total Cost Example
Consider a freelancer with a single-member LLC, one state return, who wants audit defense and a quick question answered by a pro:
| Item | TaxAct | TurboTax |
|---|---|---|
| Federal Self-Employed | $54.95 | $119.00 |
| State Filing | $44.95 | $59.00 |
| Audit Defense | $39.95 | $59.99 |
| Live Help (basic) | $39.95 (final review) | $189 (full live assisted) |
| Total | $179.80 | $426.99 |
Note: You may not need all add‑ons. Many freelancers file successfully with just the base self‑employed package.
Who Should Choose TaxAct vs TurboTax?
Choose TaxAct if:
You have a straightforward freelance business (e.g., consulting, gig work) with moderate income, you’re comfortable with tax forms, and you want to minimize costs. TaxAct’s lower price and optional add‑ons make it ideal for price‑sensitive filers who don’t need hand‑holding.
Choose TurboTax if:
You have multiple income streams, own a small business with inventory or employees, or want maximum deduction discovery. TurboTax’s guided interview helps uncover expenses you might miss, potentially saving you more than the higher software cost. Also choose it if you value a polished interface and robust audit support.
Real-World Savings Calculator: When Does TurboTax Pay for Itself?
Additional Deductions Needed to Break Even
To justify TurboTax’s higher price, you need to uncover enough extra deductions to offset the cost difference. Assuming a 25% tax bracket (combined federal & state), here’s the break‑even point:
Cost difference: $78. In a 25% bracket, you need $78 / 0.25 = $312 in additional deductions for TurboTax to pay for itself. If TurboTax finds more than $312 in deductions you’d otherwise miss, it’s the better financial choice.
Frequently Asked Questions
Yes. TaxAct supports multiple Schedule C forms. However, TurboTax’s interview may be easier if you have very different business types. Both handle the forms correctly.
Absolutely. Both import or manually enter 1099 forms. TurboTax offers direct import from some payment processors (PayPal, Stripe) for easier data entry.
TurboTax is generally better for first‑timers because of its extensive guidance. TaxAct is more “bare bones” and assumes you understand tax concepts. If you’re unsure, TurboTax may be worth the extra cost the first year.
Both offer “free” editions, but they do NOT include Schedule C. You must upgrade to a paid tier to file self‑employment income. IRS Free File may be available if your income is below $73,000, but that uses different software.
H&R Block is a close competitor with pricing similar to TaxAct. FreeTaxUSA is even cheaper ($14.99 federal, state free) but offers less guidance. This comparison focuses on the two biggest names; we have separate articles on those alternatives (see related reads below).
Final Verdict: Which Software Saves You More in 2026?
For most self-employed filers, TaxAct offers the best balance of cost and essential features. Its $99.90 total for federal + state is hard to beat, and its forms cover everything a typical freelancer needs. However, if your tax situation is complex—multiple businesses, employees, large asset purchases—or you want peace of mind that every possible deduction is found, TurboTax’s guided approach can pay for itself many times over.
💰 Bottom Line
Choose TaxAct if you’re price‑sensitive, comfortable with tax basics, and have a straightforward freelance income. Choose TurboTax if you want maximum deduction discovery, premium support, and a more polished experience—and you’re confident it will uncover at least $300 more in deductions than TaxAct would.