5 ways to get a deal on tax-prep software
As Ben Franklin famously wrote, “In this world, nothing can be said to be certain, except death and taxes.” But he never said anything about spending a fortune on tax-preparation software.
A recent National Retail Federation survey found that almost 40% of Americans will use software to prepare their own taxes this year.
If you’re among that group, use these tips to get a deal on your purchase ahead of Tax Day on April 18.
1. Get it for free.
The best possible way to get a deal on tax prep is to pay nothing at all.
The IRS has free software options available for those with adjusted gross incomes of $62,000 or less. Simply visit Free File at IRS.gov. Filers with incomes above $62,000 can find free fillable forms, too, though they’ll have to do the paperwork themselves.
Many recognizable brands of software — including TurboTax — also file federal returns for free, provided you can use a Form 1040EZ or 1040A. In some cases, you can file simple state returns for free as well.
2. Identify the right software for you.
If you do decide to pay for tax-prep software from a private company, buy a version that offers only the features you need. Most brands offer both standard and deluxe versions. Some companies will help you pick the appropriate version before you start your return.
For instance, if you have a relatively simple tax return — with no investment income or income from rental properties — you can likely get by with a less expensive, standard program, or a free one. Filers with more complex returns — such as business owners — may need a more advanced, pricier version.
3. Use coupons.
You can also take the old-fashioned approach and clip coupons to cut the cost of your tax-prep purchase. We recommend visiting sites like RetailMeNot and Coupons.com or downloading their apps. These services compile offers for a variety of brands and stores, so you can easily compare savings options. We spotted recent offers for $10 or 50% off different tax-prep products.
4. Shop sales.
Just as vacuums go on sale when it’s time for spring cleaning and TVs go on sale before the Super Bowl, retailers tend to discount tax software this time of the year.
Best Buy has marked down various brands of tax-prep software by $10 each. You’ll also find $10 off select tax products at Office Depot, where some discounts last through April 9 for tax-filing procrastinators.
5. Earn extra change with cash-back websites
Cash-back websites are fairly straightforward: Make a purchase through one of them, and you’ll receive a portion of your purchase back, often in the form of a check, gift card or PayPal credit.
These sites have agreements with retailers that let them pass a portion of their commissions on to members.
Let’s see the potential savings in action: Tax giant H&R Block is currently offering about 30% off online tax-prep software. At Ebates.com members can stack that deal with a 10% cash-back offer for H&R Block purchases. Over at BeFrugal.com, the cash-back offer is a whopping 25.3%.
If you can’t avoid taxes, you might as well make them as painless — for you and your pocketbook — as possible. Ben Franklin would be proud.
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Courtney Jespersen is a staff writer at NerdWallet, a personal finance website. Email: courtney@nerdwallet.com. Twitter: @courtneynerd .
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