If you're self-employed and military, tax season probably feels like navigating two different bureaucracies at once—but H&R Block actually makes both sides easier to handle. Whether you're filing a Schedule C for your side hustle or trying to figure out if you can use that last pay stub, we've got the straight answers you need.

Here's what you'll save yourself from figuring out the hard way:

• H&R Block does handle business taxes (starting at $85)
• They offer two ways for military members to save money
• You can't file with just your pay stub (but we'll tell you what to do instead)

How to File Your Business Taxes with H&R Block

When people ask "does H&R Block do business taxes," they usually mean self-employment income—the money you make from freelancing, consulting, or that side business you started. If you made more than $400 from self-employment, you'll need to file a Schedule C.

Think of Schedule C like your duty roster—it tracks everything you did to earn that business income, plus all the expenses you can deduct. H&R Block gives you two ways to tackle this:

Self-Employed Online: $85 for DIY Filing

This is H&R Block's DIY option designed specifically for freelancers and independent contractors. It walks you through Schedule C step-by-step and handles the tricky self-employment tax calculations automatically.

Who it works best for:

• Single-member LLCs or sole proprietors
• Straightforward business income (no employees, simple expenses)
• People comfortable with online tax software

The software includes H&R Block's 100% accuracy guarantee—if they make a calculation error, they'll reimburse you up to $10,000 for any IRS penalties.

Looking for ways to access your refund faster? See our guide to H&R Block refund options.

Block Advisors: When You Need a Tax Pro

These are H&R Block's small business certified pros with specialized training beyond basic tax prep. They handle more complex business situations and can work with partnerships, S corps, and multi-member LLCs.

You probably need a Block Advisor if:

• You have employees or multiple business entities
• Your business expenses are complicated (equipment, travel, home office)
• You want someone to review everything before filing

If you want to know more what support to expect from H&R Block, check out our customer service guide.

What You'll Actually Pay

Let's talk real numbers:

The bottom line: At $122 total (federal + state), you're paying about what you'd spend on a decent dinner out to handle your business taxes correctly and avoid IRS headaches.

For a deeper dive into all H&R Block fees and hidden costs, see our full H&R Block pricing guide.

Military Members Get Two Ways to Save Money

Here's where it gets interesting for military folks—you've got two completely different ways to save money, and they don't stack. You'll need to pick the one that makes more sense for your situation.

Free Filing Through Military OneSource

This is the big one. Through H&R Block's partnership with Military OneSource, eligible service members get completely free tax preparation—including business taxes.

Who qualifies:

• Active duty, Guard, and Reserve members
• Military spouses and dependents
• Veterans within one year of separation

What's included: Everything—W-2s, 1099s, Schedule C for business income, the works. You can file online or get help from a tax pro, all at no cost.

The catch: You access this through Military OneSource, not directly through H&R Block's website.

10% Discount on Regular Services

If you don't qualify for the free Military OneSource option, you can get a 10% discount on H&R Block's regular services through the Army & Air Force Exchange Service (AAFES).

When this makes sense:

• You're a veteran beyond the one-year free filing window
• You prefer H&R Block's regular interface over MilTax
• You want to use Block Advisors for complex business taxes

You Can't File with Just Your Pay Stub

Let's tackle the big misconception right up front: You cannot file your taxes using just your final pay stub. The IRS requires Form W-2 for accuracy, and H&R Block won't let you file without it.

Here's why your pay stub isn't enough:

• Pay stubs don't show your total annual withholdings accurately
• They're missing key tax information the IRS requires
• Filing with incomplete info can trigger audits or penalties

The smart move: If you're waiting on a W-2, use that time to organize your business income documents (1099-NECs, expense receipts) so you're ready to file everything at once.

Your Questions Answered

Can H&R Block handle both my military W-2 and my side business income?

Absolutely. Whether you use the Self-Employed Online software or work with a Block Advisor, they'll handle your regular military pay (W-2) and your business income (Schedule C) in the same return. If you qualify for Military OneSource, this is all free.

What's the difference between a 1099-NEC and a W-2 for tax filing?

A W-2 shows income where your employer already withheld taxes. A 1099-NEC shows business income where you're responsible for the taxes—including that 15.3% self-employment tax. H&R Block's Self-Employed software calculates this automatically so you don't get surprised.

Do I need a Small Business Certified Pro or is online filing enough?

If you're a freelancer or consultant with straightforward expenses, the Self-Employed Online software handles everything you need. Upgrade to a Block Advisor if you have employees, multiple business entities, or complex deductions you're unsure about.

Can I use my military discount with the Self-Employed online product?

The 10% AAFES discount applies to H&R Block's regular services. However, if you qualify for Military OneSource, that gets you completely free filing—including business taxes—which beats any discount.

Ready to get your business taxes sorted? Check out H&R Block deals on Groupon to see if there are any additional savings available, or head straight to Military OneSource if you qualify for free filing.