January is tax season’s opening act, and TurboTax is once again at the forefront with a variety of discounts designed to make filing a little easier on your wallet. From early-season promotions to QuickBooks integrations, there are options for individuals, small businesses, and freelancers. But what about Charles Schwab customers? While Schwab doesn’t directly offer TurboTax discounts, there are still plenty of ways for its clients to take advantage of savings this tax season. Let’s explore these opportunities and what’s available for everyone else looking to streamline their tax preparation.
TurboTax Discounts: What’s Available in January 2025
Extra 10% Off TurboTax Federal Online Products
TurboTax is offering an additional 10% off their federal online products, and when combined with their early-season discounts, the savings can add up to 50% off. This promotion is valid across all service tiers, which include:
- Do-It-Yourself Versions: These are best suited for individuals confident in navigating their own tax returns with the help of TurboTax’s user-friendly software.
- Live Assisted Versions: Ideal for those who want occasional help from tax experts to answer questions and guide them through the process.
- Full Service Versions: Perfect for individuals who prefer to hand over the entire tax-filing responsibility to a professional team.
This 10% discount is available through January 31, 2025, so there’s still time to take advantage and start your tax preparation early. For individuals with straightforward returns, this could be an excellent opportunity to save while ensuring accuracy.
50% Off QuickBooks Solopreneur with Live Assisted Tax
For freelancers and small business owners, TurboTax’s collaboration with QuickBooks offers significant benefits. New QuickBooks customers can get 50% off the first three months of the QuickBooks Solopreneur plan, reducing the price from $20/month to just $10/month. This deal includes access to QuickBooks Live Assisted Tax, which simplifies tax filing for self-employed individuals (particularly those filing a Schedule C).
Some of the standout features include:
- Unlimited access to tax experts who help maximize deductions and ensure accuracy.
- Seamless integration with QuickBooks, which provides TurboTax experts direct access to financial data.
- Personalized advice tailored to uncover industry-specific tax credits and deductions.
- A 100% Accurate, Expert-Approved Guarantee.
- On-demand audit support, offering guidance in the event of an audit.
However, it’s important to note that this deal is only available for new QuickBooks customers. For those already managing their business finances with QuickBooks, the savings won’t apply.
TurboTax Free Edition
TurboTax’s Free Edition remains an attractive option for individuals with simple tax returns. This option allows users to file both federal and state taxes at no cost.
Qualifying for the Free Edition includes:
- Filing a basic Form 1040.
- Limited credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit, and Student Loan Interest Deduction.
- No additional schedules or complexities, such as business income or large investment portfolios.
However, it’s worth noting that only about 37% of taxpayers qualify for this Free Edition. If your return includes anything more complex, such as itemized deductions, investment income, or business ownership, you’ll need to upgrade to a paid plan.
Charles Schwab and TurboTax Discounts: What Clients Should Know
Charles Schwab is widely known for offering a range of banking, brokerage, and financial advisory services. However, when it comes to TurboTax discounts, Schwab falls short compared to competitors like Chase and Robinhood, which both offer exclusive TurboTax deals to their clients.
As of now, Charles Schwab doesn’t promote any direct TurboTax discounts to its customers. Schwab clients will not find TurboTax offers in their accounts or through any email campaigns. This lack of tax software partnerships might feel like a missed opportunity for Schwab clients looking to save on tax preparation services.
That being said, Schwab does offer tax resources to help its clients during tax season. They also provide up to $1,000 in bonuses for referring new clients, which could offset the cost of tax filing for those who take advantage of it.
Alternatives for Schwab Clients Looking for TurboTax Discounts
If you’re a Schwab client searching for a TurboTax discount, there are still several ways to save:
- Other Partnerships: Chase, Robinhood, and AMEX often offer TurboTax discounts to their account holders. If you have accounts with any of these companies, check your account dashboard for potential offers.
- Student and Military Discounts: Students and active military members may qualify for free or discounted TurboTax services.
- AAA Members: Many AAA members receive special discounts on TurboTax products. This is another route to explore if you’re already part of the AAA network.
- Dasher Deals: Delivery drivers working with platforms like DoorDash sometimes qualify for TurboTax discounts, as their independent contractor status makes them a key demographic for tax software companies.
While Schwab clients won’t find exclusive discounts through the brokerage itself, these alternative channels can help offset costs for TurboTax’s paid products.
Tips for Navigating Tax Season
Saving on tax software is important, but so is staying organized and planning ahead for a smoother tax season. Here are a few tips to make the process less stressful:
1. Check Payroll Withholdings
One common tax mistake is withholding too much or too little from your paycheck. Over-withholding ties up money that could have been invested, while under-withholding could lead to an unexpected tax bill. The IRS’s Tax Withholding Estimator is a helpful tool to ensure your withholdings are on track.
2. Stay Informed on Tax Law Changes
Tax laws evolve every year, even if the changes seem minor. Updates to income tax brackets, contribution limits for IRAs and 401(k)s, and deduction qualifications can significantly impact your tax liability. Working with a local tax professional can help you identify opportunities and stay compliant with both federal and state laws.
3. Organize Documents Early
Tax forms from employers, financial institutions, and schools usually arrive in January or February. Collect these forms as soon as they’re available to avoid last-minute scrambles. Common forms include W-2s, 1099s, and 1098-Es.
4. File or Request an Extension by the Deadline
The federal filing deadline is April 15, 2025, but extensions are available for those who need extra time. Remember that filing an extension doesn’t extend the deadline for paying any taxes owed—those are still due by April 15.
Tax Planning for the Future
Taxes aren’t just about filing on time—they’re an integral part of financial planning. For example, contributing to tax-advantaged accounts like IRAs or HSAs can lower your taxable income while helping you save for retirement or medical expenses.
Tax planning should also account for life changes like marriage, having children, or buying a home. Each of these events can significantly impact your tax situation. Staying proactive year-round with the help of a financial advisor or tax professional ensures that you’re not just preparing for April but setting yourself up for long-term success.
Wrapping Up
TurboTax’s discounts in January 2025 provide excellent opportunities to save, whether you’re filing a straightforward return or managing a small business. While Charles Schwab doesn’t offer its clients TurboTax-specific deals, there are plenty of alternative ways for Schwab customers to reduce costs on tax preparation. By staying organized and proactive, you can make the most of this tax season and potentially uncover savings you didn’t know were possible.
Whether you’re using TurboTax, QuickBooks, or another platform, the key is preparation. And with discounts, tips, and tools at your disposal, this tax season could be your most efficient yet.