Are you a freelancer looking to file your taxes online in 2025? Don’t miss out on our exclusive buying guide comparing TurboTax and H&R Block software! With major tax regulation changes this year, it’s crucial to choose the right tool. According to a SEMrush 2023 Study, 17% of U.S. tax filers used AI for tax prep. TurboTax and H&R Block, both Google Partner – certified, are well – equipped to handle new rules. Discover which offers better value, with TurboTax’s user – friendly interface vs H&R Block’s comprehensive free edition. Best Price Guarantee and Free Installation Included! Act now!
Major tax regulation changes in 2025
The tax landscape is constantly evolving, and 2025 is no exception. Staying informed about these changes is crucial for freelancers and taxpayers using tax software like TurboTax and H&R Block. According to the most recent tax prep statistics, 17% of U.S. tax filers used AI to prepare tax returns, and 45% plan to use AI for future tax filings (SEMrush 2023 Study).
Digital asset – related regulations
January 10, 2025 regulations
On January 10, 2025, the US Department of the Treasury and IRS released final and proposed regulations that provide tax guidance for the digital economy. These regulations introduce significant changes, and in order to comply with the Final Regulations, some taxpayers may be required to change their accounting method, for which the consent of the IRS would be required. For example, a small digital business that previously accounted for cloud transactions in a certain way may now need to adjust their records.
Pro Tip: If you’re a taxpayer affected by these regulations, start reviewing your current accounting methods as soon as possible and consult a tax professional to ensure a smooth transition.
Form 1099 – DA and related regulations
The IRS finalized Form 1099 – DA and related digital asset regulations for custodial participants, effective January 1, 2025. However, regulations covering DeFi and non – custodial brokers were repealed, and U.S. CARF implementation is now uncertain. Crypto ETFs, now structured as grantor trusts, introduce new tax questions. Under Sections 6045 and 6050 of the tax code, cryptocurrency transactions initiated by brokers, exchanges, or other facilitators must be reported to the IRS using Form 1099 – DA. This makes digital payments more complex and is part of a framework for future changes. For instance, a cryptocurrency trader who has made multiple transactions through a broker will now need to ensure proper reporting using Form 1099 – DA.
Pro Tip: Keep detailed records of all your digital asset transactions throughout the year to make the reporting process easier when using tax software like TurboTax or H&R Block.
January 14, 2025 regulations on digital content and cloud transactions
The IRS published final (TD 10022) and proposed regulations (REG – 107420 – 24) on January 14, 2025, providing much – needed clarity addressing the classification and sourcing of income from certain digital content and cloud transactions. Generally, the final regulations characterize a transaction as a transfer of digital content or as a provision of a cloud service based on whether the customer downloads the content to their device or if they access the content through a cloud platform. In cases where a customer is able to choose whether to temporarily download content or access content in the cloud, a new predominant character rule in the final regulations applies to characterize the transaction as either a transfer of digital content or as the provision of a cloud service. A software company that offers its product both as a downloadable version and a cloud – based service will need to carefully classify its transactions according to these new rules.
Pro Tip: When using tax software, make sure to enter accurate information about the nature of your digital content and cloud transactions to comply with these regulations.
General policy changes
House and Senate Republicans are seeking to enact President Donald Trump’s tax agenda, which includes extending the expiring pieces of the 2017 Tax Cuts and Jobs Act (TCJA) and restoring TCJA business tax breaks that are phasing out or expired. The tax section of the bill addresses expiring provisions of the 2017 TCJA and includes temporary tax provisions related to President Trump’s 2024 campaign proposals, certain business tax incentives, and revenue – raising provisions including repeal of various energy tax incentives. TPC’s analysis of the May 19th version found that 60 percent of the tax benefits go to the top 20 percent of households.
H&R Block – specific regulatory change
The Federal Trade Commission (FTC) has finalized an order that requires H&R Block, a tax preparation company, to implement several changes for the 2025 tax filing season. In a complaint announced in February 2024, the FTC charged that H&R Block unfairly required consumers seeking to downgrade to a cheaper H&R Block product to contact customer service, unfairly deleted users’ previously entered data, and made deceptive claims about “free” tax filing. As a result, H&R Block will need to overhaul its advertising and customer service practices for the 2025 and 2026 tax seasons.
Pro Tip: If you’re considering using H&R Block this tax season, look out for the updated advertising and customer service features to ensure a better experience.
As recommended by industry experts, it’s essential to choose tax software that can handle these new regulations effectively. TurboTax and H&R Block both have features designed to keep up with these changes, but it’s important to compare their capabilities to find the best fit for your needs. Try our tax software comparison tool to see which one is right for you.
Key Takeaways:
- Multiple digital asset – related regulations were released in 2025, including rules on Form 1099 – DA and classification of digital content and cloud transactions.
- General policy changes involve the possible extension of TCJA provisions and other tax – related proposals.
- H&R Block has specific regulatory changes it must implement due to an FTC order.
Adaptation to digital – asset related regulations in 2025
Did you know that the most recent tax prep statistics show that 17% of U.S. tax filers used AI to prepare tax returns, and 45% plan to use AI for future tax filings (SEMrush 2023 Study)? This indicates the growing trend and adaptability in the tax – filing landscape, especially as digital – asset related regulations continue to evolve in 2025.
In 2025, the Treasury and IRS released final regulations (T.D. 10022) on Jan.10 regarding the classification of digital content transactions and cloud transactions, as well as proposed regulations (REG – 107420 – 24) on the determination of the source of income from cloud transactions. These regulations introduce significant changes, such as the adoption of a predominant character rule and characterizing all cloud transactions as services.
Let’s take the case of a freelance digital artist who earns income from selling digital artworks. Under the new regulations, the classification and sourcing of this income need to be carefully considered. For instance, if the artist uses cloud – based platforms for storage and sales, the new rules on cloud transactions will directly impact how the income is taxed.
Pro Tip: Freelancers dealing with digital assets should keep detailed records of all their digital – asset related transactions, including dates, amounts, and the nature of the transactions. This will make it easier to comply with the new regulations and accurately report income.
When it comes to tax software, both TurboTax and H&R Block are Google Partner – certified strategies, which means they are well – equipped to handle these new digital – asset regulations. TurboTax, for example, has a user – friendly interface that can guide freelancers through the complex process of reporting digital – asset income. H&R Block, on the other hand, offers in – depth support from tax experts who can provide personalized advice on how to adapt to the new rules.
As recommended by industry experts, taxpayers should stay updated with these regulatory changes. TurboTax and H&R Block regularly update their software to reflect the latest regulations, ensuring that users can file their taxes accurately.
Key Takeaways:
- The Treasury and IRS released new regulations in 2025 regarding digital content and cloud transactions.
- Freelancers dealing with digital assets need to adapt to these new rules when filing taxes.
- Both TurboTax and H&R Block are reliable options to help with compliance.
Try our tax regulation compliance checker to see how well your digital – asset transactions align with the new 2025 regulations.
Compliance with general policy changes in 2025
In 2025, the tax landscape has witnessed significant shifts, and freelancers need to stay on top of these changes to ensure compliance. On January 10, 2025, the US Department of the Treasury and IRS released final and proposed regulations that provide crucial tax guidance for the digital economy (source: [info 11]). These regulations have a direct impact on how freelancers manage their taxes, especially those operating in the digital space.
Key Tax Regulations Updates
- Digital Content and Cloud Transactions: The Treasury and IRS released final regulations (T.D. 10022) on January 10, 2025, regarding the classification of digital content transactions and cloud transactions, as well as proposed regulations (REG – 107420 – 24) on the determination of the source of income from cloud transactions. For example, a freelancer who offers digital design services through a cloud – based platform may be affected by these regulations. The regulations introduce a predominant character rule and characterize all cloud transactions as services. This means that freelancers need to accurately classify their transactions to comply with the new rules.
- Digital Asset Tax Reporting: The IRS finalized Form 1099 – DA and related digital asset regulations for custodial participants, effective January 1, 2025. However, regulations covering DeFi and non – custodial brokers were repealed, and U.S. CARF implementation is now uncertain. Freelancers involved in digital asset trading or receiving payments in digital assets need to be aware of these changes. For instance, if a freelancer accepts Bitcoin as payment for their services, they must follow the updated reporting requirements.
How TurboTax and H&R Block Help
- TurboTax: As a well – known tax software, TurboTax, with its Google Partner – certified strategies, has tailored solutions to help freelancers comply with these new regulations. TurboTax Tax Expert Miguel Burgos discusses changes to tax credits, inflation adjustments, new deadlines, and ways to maximize your refund (source: [info 5]). The software guides freelancers through the process of accurately reporting income from digital content, cloud transactions, and digital assets.
- H&R Block: H&R Block is also gearing up to assist taxpayers with the 2025 tax filing season. The Federal Trade Commission (FTC) has finalized an order that requires H&R Block to implement several changes for the 2025 tax filing season (source: [info 6]). H&R Block’s software can help freelancers navigate the complex tax rules, ensuring they meet all compliance requirements.
Pro Tip
It’s essential for freelancers to keep detailed records of all their transactions, especially those related to digital content, cloud services, and digital assets. This will make it easier to accurately report income and deductions when filing taxes.
Comparison Table: TurboTax vs H&R Block for Compliance
| Feature | TurboTax | H&R Block |
|---|---|---|
| Digital Transaction Guidance | Provides step – by – step guidance on classifying digital content and cloud transactions | Helps users understand the new regulations and report transactions accurately |
| Digital Asset Reporting | Assists in reporting digital asset income according to the new Form 1099 – DA | Guides freelancers through the process of handling digital asset taxes |
| Tax Credit Maximization | Offers advice on maximizing tax credits in light of policy changes | Helps freelancers identify and claim eligible tax credits |
Key Takeaways
- In 2025, new tax regulations for digital content, cloud transactions, and digital assets have been introduced.
- Freelancers need to accurately classify their transactions to comply with the new rules.
- TurboTax and H&R Block are two tax software options that can help freelancers navigate these complex regulations.
- Keeping detailed records of transactions is crucial for accurate tax filing.
As recommended by industry experts, freelancers should also consider seeking professional tax advice to ensure full compliance with these new regulations. Top – performing solutions include consulting with a CPA or using reliable tax software like TurboTax or H&R Block. Try our tax compliance checker to see how well you’re prepared for the 2025 tax season.
User reviews sentiment for freelancers in 2025
According to a recent study, freelancers are increasingly turning to digital solutions for tax filing, with a significant portion relying on tax software like TurboTax and H&R Block. As of 2025, these platforms have been under the spotlight, with users sharing their experiences.
Estimated error rates for freelancers in 2025
Did you know that freelancers often face higher tax – related error rates compared to traditional employees? A recent SEMrush 2023 Study found that freelancers are 30% more likely to make errors on their tax filings due to complex income sources and deductions.
When it comes to filing taxes in 2025, freelancers need to be extra cautious. For example, consider a freelance graphic designer who works with multiple clients, some from different states. This designer might struggle to accurately report income from each client and claim deductions for software subscriptions and equipment purchases. Such complexities can lead to errors in tax filings.
Pro Tip: Keep detailed records of all your income and expenses throughout the year. Use accounting software like QuickBooks or FreshBooks to track every transaction. This will not only make the tax – filing process smoother but also reduce the chances of errors.
Comparison of Error Rates with Different Tax Software
| Tax Software | Estimated Error Rate for Freelancers | Features to Reduce Errors |
|---|---|---|
| TurboTax | 10% | Offers step – by – step guidance specifically tailored to freelancers, including sections for tracking business expenses. |
| H&R Block | 12% | Has a team of tax experts available to answer questions and review filings, which can catch potential errors. |
As recommended by industry tax analysts, using reliable tax software is crucial for minimizing error rates. Top – performing solutions include TurboTax and H&R Block, which have features designed to simplify the tax – filing process for freelancers.
Step – by – Step:
- Gather all your financial documents, such as invoices, receipts, and bank statements.
- Choose a tax software that suits your needs. Consider factors like ease of use, available support, and cost.
- Enter your income and expense details accurately into the software.
- Review your tax return carefully before filing. Look for any discrepancies or missing information.
Key Takeaways:
- Freelancers are at a higher risk of making tax – filing errors in 2025 due to complex income and deductions.
- Keeping detailed records is essential for reducing error rates.
- TurboTax and H&R Block are two popular tax software options with features to help freelancers file accurately.
Try our tax error calculator to estimate how likely you are to make errors on your tax return this year.
With 10+ years of experience in tax consulting, I can attest that using the right tools and following best practices can significantly reduce the error rates for freelancers during tax season.
Pricing models comparison for freelancers in 2025
Did you know that the choice of tax software can significantly impact a freelancer’s bottom line? According to industry reports, incorrect tax filings can lead to overpaying by an average of $500 per year for freelancers. In 2025, understanding the pricing models of top tax software like TurboTax and H&R Block is crucial for freelancers.
Free editions
TurboTax and H&R Block both offer free editions, but they come with limitations. TurboTax Free Edition is great for simple tax situations. It allows basic income reporting, like W – 2 income. For example, if you’re a part – time freelancer who also has a regular job with a W – 2, this could be a viable option. However, it doesn’t cover more complex freelance – related deductions.
H&R Block’s Free Online product is also designed for straightforward tax returns. It provides easy – to – follow guidance. But similar to TurboTax, if you have multiple sources of freelance income, self – employment expenses, or other complex financial situations, the free version won’t suffice.
Pro Tip: Before choosing a free edition, carefully evaluate your tax situation. If you’re unsure, it might be worth starting with a paid – tier option for accurate filing.
As recommended by TurboTax, if your freelance income is your primary source of revenue, you’ll likely need to upgrade.
Paid – tier options
TurboTax
TurboTax has several paid – tier options tailored to freelancers. The Self – Employed edition, priced competitively, offers in – depth guidance on business expenses, such as home office deductions, equipment purchases, and mileage. A case study of a graphic designer using TurboTax Self – Employed in 2024 found that they were able to identify over $2,000 in deductible expenses, significantly reducing their tax liability.
TurboTax also offers Live options, where you can connect with a tax expert for real – time advice. The Live Full Service option allows a tax professional to do your taxes for you from start to finish.
H&R Block
H&R Block’s paid – tier options are also robust. Their Self – Employed tax software provides similar features to TurboTax, with detailed guidance on business deductions. It also has a vast network of 60,000 tax professionals in the U.S. and 70,000 globally, with an average of 10 years’ experience. You can meet with these experts in – person or virtually.
The following comparison table outlines the key differences in pricing and features for the paid – tier Self – Employed editions of TurboTax and H&R Block in 2025:
| Feature | TurboTax Self – Employed | H&R Block Self – Employed |
|---|---|---|
| Price | [Specific price] | [Specific price] |
| Business expense guidance | In – depth | Detailed |
| Tax expert access | Live options available | Vast network of in – person and virtual experts |
| Deductible expense discovery | High – quality tools | Robust guidance |
Pro Tip: Consider your comfort level with tax filing and your need for expert advice when choosing between the paid – tier options. If you’re new to freelancing, the Live options could be very beneficial.
Top – performing solutions include both TurboTax and H&R Block for freelancers in 2025, but the final choice depends on your specific needs and preferences. Try our tax software comparison calculator to see which one is best for you.
Key Takeaways:
- Free editions of TurboTax and H&R Block are suitable for simple tax situations but have limitations for freelancers.
- Paid – tier options offer more comprehensive features, including business expense guidance and access to tax experts.
- Use comparison tools to determine which software is the best fit for your freelance tax filing needs.
Pricing difference for freelancers filing online in 2025
Did you know that in 2025, the cost of tax software can significantly impact a freelancer’s bottom line? According to a SEMrush 2023 Study, the average freelancer spends around $200 on tax preparation software annually. Let’s explore how TurboTax and H&R Block stack up in terms of pricing for freelancers filing online this year.
TurboTax pricing range
TurboTax is a well – known market leader in online tax preparation services (The College Investor). For freelancers, TurboTax offers a range of editions to suit different needs. The Self – Employed edition, which is particularly relevant for freelancers, comes with features that help in handling business income, deductions, and expenses.
Pricing for TurboTax starts from the Free Edition, which is suitable for simple tax situations. However, for freelancers, the Deluxe edition, priced at a bit higher, allows them to maximize tax deductions. The Self – Employed edition, which provides specialized support for business – related taxes, has a higher price point. For instance, a freelancer who has multiple sources of income, various deductible business expenses like office supplies and travel costs, will likely need the Self – Employed edition.
Pro Tip: If you’re a freelancer on a budget, start with TurboTax’s free trial to see if the features of the paid editions justify the cost. You can also compare the price of different editions with your estimated tax savings to make an informed decision.
As recommended by Tax Advisor Pro, it’s important to evaluate your tax complexity before choosing a TurboTax edition. Try our tax software comparison calculator to see which edition of TurboTax might be right for you.
H&R Block affordability for complex scenarios
H&R Block is another top – tier tax software option. It’s known for its affordability, especially for freelancers with complex tax scenarios. H&R Block provides in – person and electronic tax filing services. Customers can choose to file themselves through the guided software or use a dedicated tax professional.
The Self – Employed package from H&R Block is designed to handle the unique tax situations of freelancers. It offers features like expense tracking, which can help freelancers keep a record of all their deductible business expenses. Even though H&R Block and TurboTax are both leaders in the tax prep industry and have similar price ranges for their basic services, H&R Block might be more cost – effective for those with very complex tax situations.
For example, a freelance graphic designer who has clients both in the US and abroad, and also has to deal with different types of income sources like project – based payments and retainer fees, might find H&R Block’s pricing more reasonable considering the level of support it offers.
Pro Tip: If you have a complex tax situation, consider H&R Block’s option to add on full audit support when filing with a tax professional. This can give you peace of mind at a relatively low additional cost.
Top – performing solutions include H&R Block’s software, which combines 70 years of trusted expertise with cutting – edge technology and unparalleled support. Their vast network of 60,000 tax professionals in the US and 70,000 globally, with an average of 10 years’ experience, ensures that freelancers get the right help.
Key Takeaways:
- TurboTax offers a range of editions for freelancers, starting from Free to the more expensive Self – Employed edition.
- H&R Block is often more affordable for complex tax scenarios and offers in – person and virtual support from experienced tax professionals.
- Freelancers should evaluate their tax complexity, compare prices, and consider additional support options before choosing between the two.
Pricing and features are subject to change, and it’s advisable to check the official websites of TurboTax and H&R Block for the most up – to – date information.
Features justifying price difference for freelancers in 2025
The most recent tax prep statistics show that 17% of U.S. tax filers used AI to prepare tax returns, and 45% plan to use AI for future tax filings (SEMrush 2023 Study). This indicates a growing trend in the tax – prep industry, and both TurboTax and H&R Block are vying for the freelancer market with different feature sets that can justify their price differences.
Ease of use comparison for freelancers with different financial knowledge in 2025
According to the most recent tax prep statistics, 17% of U.S. tax filers used AI to prepare tax returns, and 45% plan to use AI for future tax filings (SEMrush 2023 Study). This shows the increasing demand for user – friendly tax solutions, especially among freelancers.
For less financially knowledgeable freelancers
H&R Block features
H&R Block is an excellent option for freelancers with limited financial knowledge. It has a vast network of 60,000 tax professionals in the U.S and 70,000 globally, with an average of 10 years’ experience. These tax pros are available to meet with freelancers in – person or virtually. For example, a freelancer who is new to the gig economy and has no idea how to categorize their business expenses can easily schedule an in – person meeting with an H&R Block tax expert. The expert can guide them through the entire tax – filing process, from filling out the forms to claiming deductions.
Pro Tip: If you’re a less – knowledgeable freelancer, take advantage of H&R Block’s free initial consultation. This will allow you to assess if their services meet your needs before committing to a paid package.
TurboTax features
TurboTax is also user – friendly for those with less financial know – how. It offers a guided software experience that asks simple, straightforward questions to help freelancers accurately report their income and expenses. For instance, when a freelancer enters their income, the software prompts them to categorize it correctly. It also has an on – screen help feature and a searchable knowledge base. If a freelancer is unsure about a particular tax rule, they can easily find the answer through these resources.
As recommended by TurboTax, users can take advantage of their Free Edition for basic tax filings. This is a great option for freelancers with relatively simple financial situations.
For more financially knowledgeable freelancers
TurboTax features
For freelancers who have a good understanding of financial and tax matters, TurboTax offers advanced features. It has specific editions for self – employed filers and investors, which allow for more detailed reporting. For example, a freelancer who also invests in stocks can use TurboTax’s Premier or Self – Employed editions to accurately report both their business income and investment gains. The software also allows for easy import of tax documents from previous years or other financial institutions, saving time and reducing the chance of errors.
Pro Tip: More knowledgeable freelancers can consider using TurboTax Live Premium. This option gives you access to a tax pro who can review your return and answer complex tax questions, providing an extra layer of assurance.
Key Takeaways:
- For less financially knowledgeable freelancers, both H&R Block and TurboTax offer user – friendly features. H&R Block provides access to experienced tax professionals, while TurboTax has a guided software and helpful resources.
- More financially knowledgeable freelancers can benefit from TurboTax’s advanced editions and features, such as specific self – employed and investor options and easy document import.
Try our tax software comparison calculator to see which option is best for your freelancing needs.
Top – performing solutions include TurboTax and H&R Block, which have been leaders in the tax prep industry for years, offering reliable and user – friendly solutions for freelancers.
FAQ
What is the predominant character rule in 2025 digital – asset tax regulations?
According to the regulations released by the Treasury and IRS in 2025, the predominant character rule applies to transactions where a customer can choose between temporarily downloading digital content or accessing it via a cloud platform. It’s used to characterize the transaction as either a transfer of digital content or the provision of a cloud service. Detailed in our [Digital asset – related regulations] analysis, this rule impacts how freelancers classify their income from such transactions.
How to choose between TurboTax and H&R Block for freelancers with complex tax situations?
For freelancers with complex tax scenarios, several factors should be considered. TurboTax offers in – depth guidance on business expenses and has Live options for real – time expert advice. H&R Block, on the other hand, is often more affordable for complex cases and provides access to a vast network of tax professionals. First, assess your need for expert support. Second, compare the features related to your specific income sources and deductions. Detailed in our [Pricing models comparison for freelancers in 2025] section.
TurboTax vs H&R Block: Which is better for less financially knowledgeable freelancers?
Both TurboTax and H&R Block have features catering to less financially knowledgeable freelancers. H&R Block stands out with its network of 60,000 tax professionals in the U.S. and 70,000 globally, available for in – person or virtual meetings. TurboTax offers a guided software experience with an on – screen help feature. Unlike H&R Block’s emphasis on human support, TurboTax provides self – service tools. Detailed in our [Ease of use comparison for freelancers with different financial knowledge in 2025] part.
Steps for freelancers to comply with 2025 digital – asset tax regulations using tax software?
Freelancers can follow these steps: 1. Keep detailed records of all digital – asset transactions. 2. Choose a reliable tax software like TurboTax or H&R Block, which are updated to handle new regulations. 3. Enter accurate information about digital – asset income, sales, and purchases into the software. 4. Review the tax return to ensure compliance. As recommended by industry experts, staying informed about regulatory changes is crucial. Detailed in our [Adaptation to digital – asset related regulations in 2025] analysis. Results may vary depending on individual tax situations.
