Tax season is upon us again, and with it comes the opportunity to save on tax preparation services like TurboTax. Whether you’re a seasoned filer or tackling your taxes for the first time, January 2025 offers some of the best discounts on TurboTax products. For Vanguard clients, understanding the current options and leveraging other financial perks can help optimize the process. Let’s dive into the available TurboTax deals and how Vanguard customers can still benefit—even without the once-popular Vanguard TurboTax discount.
TurboTax Discounts You Don’t Want to Miss
Extra 10% Off TurboTax Online Federal Products
One of the standout promotions this month is an extra 10% off TurboTax’s online federal products. This discount stacks on top of their early-season deals, offering total savings of up to 50% depending on the tier you choose. The discount applies to all service levels, giving you the flexibility to pick a plan that fits your needs:
- Do-It-Yourself Versions: Great for those who feel comfortable navigating their taxes independently using TurboTax’s user-friendly platform.
- Live Assisted Versions: Perfect if you prefer occasional support from tax professionals who can answer questions and guide you along the way.
- Full-Service Versions: Ideal if you’d rather let a team of professionals handle your tax return entirely.
This offer runs until January 31, 2025, making it an excellent opportunity to get ahead of your filing.
50% Off QuickBooks Solopreneur Plan (with TurboTax Live Assisted Tax)
If you’re self-employed or own a small business, this deal might catch your eye. TurboTax has partnered with QuickBooks to offer 50% off the QuickBooks Solopreneur plan for new subscribers. This discount slashes the monthly cost from $20 to $10 for the first three months.
This plan is tailored for those filing a Schedule C (Form 1040) and includes QuickBooks Live Assisted Tax—a feature designed to simplify tax preparation for freelancers and small business owners. Key benefits include:
- Unlimited access to tax experts.
- Seamless integration with QuickBooks to streamline financial data.
- Personalized advice on deductions and credits specific to your industry.
- A 100% Accurate, Expert-Approved Guarantee.
- On-demand audit support.
While the offer is exclusive to new QuickBooks customers, it’s a valuable tool for self-employed individuals looking to simplify their bookkeeping and tax filing.
TurboTax Free Edition for Simple Returns
TurboTax continues to offer its Free Edition for taxpayers with simple returns, allowing you to file both federal and state taxes at no cost. You qualify for the TurboTax’s Free Edition if your return includes:
- A basic Form 1040.
- Limited credits, like the Earned Income Tax Credit, Child Tax Credit, or Student Loan Interest Deduction.
- No additional schedules or complex tax situations.
However, keep in mind that only around 37% of taxpayers meet the criteria for this plan. If you have investments, own a business, or face more complex filing needs, you’ll need to upgrade to a paid TurboTax tier.
What Happened to the Vanguard TurboTax Discount?
For years, Vanguard offered its clients an exclusive TurboTax discount. However, that partnership appears to have ended. If you’ve searched Vanguard’s website recently, you might have noticed that the TurboTax link now leads to an error page, confirming that the offer is no longer active.
While this might be disappointing, there’s good news: similar TurboTax 2025 discounts are available through other financial institutions, including Bank of America, American Express, and Fidelity. So, if you’re a Vanguard client and still want to save on TurboTax, it’s worth checking if you qualify for discounts through other financial partners.
Benefits for Vanguard Customers
Although the TurboTax discount is no longer an option, Vanguard clients still enjoy several financial perks that can make tax preparation and investment management easier. Here are three notable benefits:
- Commission-Free Trading: Vanguard offers commission-free trading on all its ETFs and many third-party ETFs. This not only saves on trading fees but also simplifies importing investment data into TurboTax.
- Low Expense Ratios: Vanguard’s funds are renowned for their low-cost structure, often featuring expense ratios significantly below industry averages. By saving on investment fees, Vanguard clients have more room to grow their returns over time.
- Volume Discounts: For clients with substantial account balances or frequent trading activity, Vanguard may provide volume discounts, helping further reduce costs.
While these perks don’t directly offset the loss of a TurboTax discount, they do contribute to overall financial efficiency.
Key Tax Tools for Vanguard Investors
As a Vanguard client, you have access to resources that make tax preparation smoother, even without specific software discounts. These include:
- Final Capital Gains Estimates (2024): A PDF summarizing Vanguard fund distributions for the prior year, helping you plan ahead.
- Dividend Schedule (2024): A timeline of distributions for Vanguard funds.
- Government Bond Income Data: Information on the percentage of income from U.S. government bonds, which is generally tax-exempt at the state level.
- Foreign Tax Credit Details: Guidance on claiming foreign tax credits for funds with international holdings.
- Qualified Dividend Income Reports: Information on qualified dividends, which are taxed at lower rates.
- Municipal Bond Fund Data: Percentages of state-specific dividends for municipal bond funds, potentially reducing state tax liability.
By leveraging these tools, you can optimize your tax filing and ensure accuracy.
A Note on TurboTax Security and Support
TurboTax prioritizes the security of your tax information with advanced encryption and compliance measures. Additionally, its interface offers real-time error checks and deduction maximizers, giving you confidence in your filing. For new users, setting up an account is straightforward, and returning users can log in with the same credentials as last year.
If you experience issues—such as a blank screen when trying to link Vanguard to TurboTax—simply close the window and try again. TurboTax’s customer support is available to help resolve any hiccups.
Preparing for the 2025 Tax Deadline
As a final reminder, the federal tax deadline this year is April 15, 2025. If you’re a Vanguard investor, you can expect tax forms to start rolling out in mid-January and continue through mid-March. Be sure to check your Vanguard account for digital copies of forms like 1099-DIV and 1099-B, or keep an eye on your mailbox if you still receive paper copies.
For IRA contributions, the deadline aligns with the tax filing deadline, so you have until April 15, 2025 to make contributions for the 2024 tax year.
Final Thoughts
TurboTax’s January 2025 discounts are an excellent opportunity to save on tax preparation services, especially if you act early. While Vanguard’s TurboTax discount is no longer available, there are still plenty of ways for Vanguard clients to benefit from other financial perks and discounts offered by financial institutions. Whether you’re filing independently or seeking professional assistance, TurboTax’s various tiers ensure that there’s a solution for everyone. Combine these deals with Vanguard’s robust tax resources, and you’ll be well-equipped for a smooth tax season.